Grameen Bank

The Grameen Bank (Bengali: গ্রামীণ বাংক) is a Nobel Peace Prize winning microfinance organization and community development bank started in Bangladesh that makes small loans (known as microcredit or "grameencredit") to the impoverished without requiring collateral. The name Grameen is derived from the word gram which means "rural" or "village" in the Bengali language.

The system of this bank is based on the idea that the poor have skills that are under-utilized. A group-based credit approach is applied which utilizes the peer-pressure within the group to ensure the borrowers follow through and use caution in conducting their financial affairs with strict discipline, ensuring repayment eventually and allowing the borrowers to develop good credit standing. The bank also accepts deposits, provides other services, and runs several development-oriented businesses including fabric, telephone and energy companies. Another distinctive feature of the bank's credit program is that the overwhelming majority (98%) of its borrowers are women.

The origin of Grameen Bank can be traced back to 1976 when Professor Muhammad Yunus, a Fulbright scholar at Vanderbilt University and Professor at University of Chittagong, launched a research project to examine the possibility of designing a credit delivery system to provide banking services targeted to the rural poor. In October 1983, the Grameen Bank Project was transformed into an independent bank by government legislation. The organization and its founder, Muhammad Yunus, were jointly awarded the Nobel Peace Prize in 2006; the organization's Low-cost Housing Program won a World Habitat Award in 1998. In 2011, the founder Muhammad Yunus was sacked from the Grameen Bank by the Bangladesh Government.

Read more about Grameen BankHistory, Application of Microcredit, Operational Statistics, Nobel Peace Prize, Related Ventures, Criticism

Other articles related to "grameen bank, banks, grameen, bank":

Grameen Bank - Criticism
... communities into debt from which they cannot escape, citing situations where microloans from the Grameen Bank were linked to exploitation and pressures on poor families to sell ... The Mises Institute's Jeffrey Tucker suggests that microcredit banks depend on subsidies in order to operate, thus essentially becoming another example of ... is based on interpretations of the Grameen's 16 decisions, seen as indoctrination, without further analysing what they mean in the context of poor, illiterate peasants ...
Banking In Bangladesh
... care provided by the government run banks ... Recently the private banks are trying to imitate the banking structure of the more developed countries, but this attempt is often foiled by inexpert or politically motivated government policies ... two branch offices of the former State Bank of Pakistan and seventeen large commercial banks, two of which were controlled by Bangladeshi interests and three ...
Solidarity Lending - Grameen Bank
... Muhammad Yunus of Grameen Bank in Bangladesh describes the dynamics of lending through solidarity groups this way.. ... The Grameen approach uses solidarity groups as its primary building block ...
Microcredit Regulatory Authority - Microcredit in Bangladesh
... program in Bangladesh is implemented by NGOs, Grameen Bank, different types of government-owned banks, private commercial banks, and specialized programs of some ministries of the Bangladesh ... microcredit programs, only 10 large Microcredit Institutions (MFIs) and Grameen Bank represent 87% of total savings of the sector (around BD taka 93 billion) and 81% of total outstanding ... thousand people are employed in MFIs and Grameen Bank ...
Muhammad Yunus - Early Career
... While traditional banks were not interested in making tiny loans at reasonable interest rates to the poor due to high repayment risks, Yunus believed that given the chance the poor will repay the ... Yunus finally succeeded in securing a loan from the government Janata Bank to lend it to the poor in Jobra in December 1976 ... The institution continued to operate by securing loans from other banks for its projects ...

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