Grameen Bank | |
|[pic] | |Type |Body Corporate (Bank Ordinance) | |Industry |Finance | |Founded |1983 | |Headquarters |Dhaka, Bangladesh | |Area served |Bangladesh | |Key people |Muhammad Yunus, founder | | |Mohammad Shahjahan, Acting Managing Director (CEO) | |Products |Financial services | | |microfinance | |Revenue |[pic]12,435,830,045 Taka (176.67 million USD) (2010) | |Operating income |[pic]8,513,832,110 Taka (120.95 million USD) (2010) | |Net income |[pic]757,241,322 Taka (10.76 million USD) (2010) | |Total assets |125,396,957,972 Taka (2010) | |Employees |22,149 (July 2011) | |Website |grameen-info.org |
What is Grameen Bank?
The Grameen Bank (Bengali: গ্রামীণ বাংক) is a microfinance organization and community development bank started in Bangladesh that makes small loans (known as micro credit or "grameen credit) 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.
A Short History of Grameen Bank
The origin of Grameen Bank can be traced back to 1976 when Professor Muhammad Yunus, Head of the Rural Economics Program at the University of Chittagong, launched an action research project to examine the possibility of designing a credit delivery system to provide banking services targeted at the rural poor. The Grameen Bank Project (Grameen means "rural" or "village" in Bangla language) came into operation with the following objectives:
Extend banking facilities to poor men and women;
Eliminate the exploitation of the poor by money lenders;
Create opportunities for self-employment for the vast multitude of unemployed people in rural Bangladesh; Bring the disadvantaged, mostly the women from the poorest households, within the fold of an organizational format which they can understand and manage by themselves; and Reverse the age-old vicious circle of "low income, low saving & low investment", into virtuous circle of "low income, injection of credit, investment, more income, more...
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