Concertive Control System

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  • Topic: Muhammad Yunus, Grameen Bank, Bangladesh
  • Pages : 14 (3274 words )
  • Download(s) : 43
  • Published : March 10, 2013
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CONCERTIVE CONTROL SYSTEM
 

2013

Contents

How would you describe the system of control in the Grameen Bank? ......................................... 2

How does it contribute to the success of the bank’s vision and mission? ...................................... 3

What are the potential positive benefits of concertive control system, are there positive components or outcomes associated with the concertive control system at the Grameen Bank? .. 4

References: ...................................................................................................................................... 6

Appendix A ..................................................................................................................................... 7 INTRODUCTION: ..................................................................................................................... 7 BACKGROUND OF CASE STUDY: ....................................................................................... 7 CASE STUDY: ........................................................................................................................... 8 CONCLUSION ......................................................................................................................... 11  

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HAMIDREZA

MAGHAZEH

110033960

CONCERTIVE CONTROL SYSTEM
 

2013

How would you describe the system of control in the Grameen Bank? Muhammad Yunus, an economics professor, thinks that the poor have skills that remain unor under-utilized, mainly because current institutions and policies fail to offer the support these people require. He founded the Grameen Bank in 1976 to supply credit to those who would not qualify as customers of established banks. Grameen Bank allowances unsecured loans to the poor in rural Bangladesh. It differs from other lending institutions on three counts. First, priority is assumed to designing the system so that the loans can be repaid, and on time. • • Second, only the poorest villagers, the landless, are eligible. Third, the bank makes efforts to lend primarily to women, who are not only economically but also socially impoverished. The loan disbursal design is exclusive. To qualify for a loan, a villager must demonstrate that her family assets are below a certain threshold. She is not required to put up warranty; instead, she must join a five-member group and a forty-member center, and join a weekly meeting. She must also share responsibility for the loans granted to the other members of her group; it is the group, not the bank, which firstly evaluates loan requests. Defaulters would spoil things for everybody, so group members must choose their partners prudently. The Grameen Bank has been profitable from the start, and has inspired a global micro-credit movement that has spread to 65 developing countries, reaching 17 million borrowers.



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HAMIDREZA

MAGHAZEH

110033960

CONCERTIVE CONTROL SYSTEM
 

2013

How does it contribute to the success of the bank’s vision and mission? The vision of founder, Muhammad Yunus, was to alleviate poverty for women in Bangladesh. Based on the belief that every human being is able to help herself, he started by providing microfinance, convinced that offering small loans would enable borrowers either to establish a small business or to grow and expand an existing business. Later, with the arrival of the internet, he realized that providing loans might not be enough to face the digital divide. Yunus addressed this concern by founding Grameen Telecom and Grameen Phone. The objective of the project was to test whether the poor are creditworthy and if credit can be supplied without any warranty. Later with the help from some Nationalized Commercial Banks, Professor Yunus was able to provide a formal structure to his experiment essentially serving as an intermediary lender, by lending bank funds to the rural landless,...
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