Grameen Bank (http://www.grameen-info.
org)
Bangladeshi bank founded by economist Muhammad
Yunus to provide small loans to poor individuals (micro
credit/finance). It is one of the world’s most successful
microfinance institutions. Grameen means "rural" or
"village" in Bangla language.
• Owned by the Poor
○ Grameen Bank Project started in the village of Jobra,
Bangladesh, in 1976. In 1983 it was transformed into a formal
bank under a special law passed for its creation. It is owned by
the poor borrowers of the bank who are mostly women. It
works exclusively for them. Borrowers of Grameen Bank at
present own 95% of the total equity of the bank; the
remaining 5% is owned by the government.
• 97% Women
○ Total number of borrowers is 8.01 million, 97% of them are
women.
• Branches
○ Grameen Bank has 2,563 branches. It works in 81,343
villages. Total staff is 23,275.
• Recovery Rate 97%
○ Loan recovery rate is 96.54%.
Full list at: http://www.grameen-info.org/index.php?
option=com_content&task=view&id=26&Itemid=175
History of the Grameen Bank:
○ 1976: 10 members 2009: 7.5 million+ borrowers, 65% of member
lift themselves out of extreme poverty. (UNDP 2009)
○ Professor Muhammad Yunus researches a project examining the
possibility of a credit system of banking for the poor. Objectives:
– Banking for the poor and eliminating exploitation of poor by
money lenders;
– Self-employment for rural Bangladeshis;
– Teaching people how organisations run so they can manage
their finances;
– Wiping out "low income, low saving & low investment", by
lending credit to increase income, investment and saving.
○ 1976-1979: Professor Yunus’s research demonstrated its strength in
Jobra and other villages near Chittagong University (see map, “1
”)
○ 1979: Project extended to Tangail district (see map, “2 ”), and
after its success, other districts.
○ October 1983: Legislation changed the Grameen Bank Project into
an independent bank, owned by it’s members.
World Map, arrow to Bangladesh. Bangladesh Map arrow 1 to
Chittagong District; arrow 2 to Tangail District
• Methodology
○ The Grameen Bank system is collateral-free, which is nearly the
reverse of the conventional banking methodology. Whilst
conventional banks look at what has been acquired by a person,
and are owned by the rich, usually men, the Grameen Bank looks at
a person’s potential, and it supports the poor, in particular the
women. This is to try and help them fight poverty and stay
profitable. The Grameen Bank has branches in local areas, as they
believe the bank should go to the people, rather than the people go
to the bank. When a client gets into financial difficulties, the
Grameen Bank works extremely hard to try and get them out of
trouble. This is a very different approach to conventional banks,
which would make all efforts to recover the money. The Grameen
Bank also promotes the “Sixteen Decisions” which includes goals in
social, educational and health areas, such as education for children,
sanitary latrine and arranging clean drinking water.
http://www.grameen-info.org/index.php?
option=com_content&task=view&id=27&Itemid=176
• Awards
○ 1989: Switzerland, Aga Khan Award For Architecture: for the
Grameen Bank Housing Programme; helping members construct
60,000 houses (average cost $300).
○ 1993: Belgium, King Baudouin International Development
Prize: for acknowledging the role of women in the development
process, and the innovative credit system which aided improvement
of women’s/families’ conditions in rural areas.
○ 1994: Bangladesh: Independence Day Award: for outstanding
contributions to rural development.
○ 1994: Malaysia, Tun Abdul Razak Award: for it’s unique money
lending programme which helped change thousands of lives.
○ 1997: U.K., World Habitat Award by the Building and Social
Housing Foundation.
○ 2000: India, Gandhi Peace Prize
○ 2004: U.S.A., Petersberg Prize by the Development Gateway
Foundation.
○ 2006: Norway,: Nobel Peace Prize
http://www.grameen-info.org/index.php?
option=com_content&task=view&id=21&Itemid=139
Info from:
http://www.grameen-info.org
http://www.grameen-info.org/index.php?
option=com_content&task=view&id=26&Itemid=175
UNDP 2009: http://rymun09.org/2009%20United%20Nations%20Development
%20Resource%20Pack.pdf
http://www.grameen-info.org/index.php?
option=com_content&task=view&id=19&Itemid=114
http://www.grameen-info.org/index.php?
option=com_content&task=view&id=27&Itemid=176
http://www.grameen-info.org/index.php?
option=com_content&task=view&id=21&Itemid=139
