Grameen Bank
microfinance organization and community development bank / From Wikipedia, the free encyclopedia
The Grameen Bank is a community development bank started in Bangladesh. They give small loans (known as microcredit or "grameencredit" Archived 2008-04-08 at the Wayback Machine) to poor people without asking for money before the loan is given. The word "Grameen", is made of the word "gram" or "village", and means "of the village". The system of this bank is based on the idea that the poor have skills but have no chance to use their skills without some money. The bank also controls some businesses, such as fabric, telephone and energy companies. Most of the banks loans go to women.
Company type | Body Corporate (Bank Ordinance) |
---|---|
Industry | Finance |
Founded | Bangladesh |
Headquarters | Dhaka, Bangladesh |
Area served | Bangladesh |
Key people | Muhammad Yunus, founder |
Products | Financial Services Microfinance |
Revenue | 6,335,566,324 Taka (2006)[1] |
5,959,675,013 Taka (2006)[1] | |
1,398,155,030 Taka (2006)[1] | |
Total assets | 59,383,621,728 Taka (2006)[2] |
Number of employees | 24,703 (Oct 2007)[3] |
Website | http://www.grameen-info.org/ |
The Grameen Bank was started 1976 when Professor Muhammad Yunus, a Fulbright scholar and Professor at University of Chittagong, researched how to provide banking for the rural poor. In October 1983, the Grameen Bank Project was made into an independent bank by the government. The group and its first member, Muhammad Yunus, were awarded the Nobel Peace Prize in 2006.[4]
Some people have said the banks prices are too expensive and put people in a debt-trap. Some have also said that the bank would not work if people did not give donations. At the same time, it is often seen as a success story in microfinance and as the guide for other groups around the world.