Bank Founder: Muhammad Yunus
Inspired by the Bangladesh famine of 1974
1976: Test in the village of Jobra and other villages
surrounding the University of Chittagong
The project was transformed into an independent bank, on
October 02, 1983
In the initial years, agencies used to provide a lots of loans at
very cheap rates
90’s : bank started to get most of its funding from the central
bank of Bangladesh
Grameen has started bond sales as a source of finance
Today the bank is owned by borrowers 90% and the
Born 1940 in Bangladesh
1971, Ph.D in economics from Vanderbilt University
1976, inspired by Jobra village’s women
1983, Establishing Grameen Bank
2006 Nobel Prize
2011 Fired from Gameen Bank
Nobel Peace Prize
October 13, 2006 ~ The Nobel Committee awarded Grameen
Bank and its founder, Muhammad Yunus, the 2006 Nobel
Peace Prize, for their efforts to create economic and social
development from below.
“From modest beginnings three decades ago, Yunus has, first and foremost
through Grameen Bank, developed micro-credit into an ever more important
instrument in the struggle against poverty. Grameen Bank has been a source of
ideas and models for the many institutions in the field of micro-credit that have
sprung up around the world.”
Only business corporation to have won a Nobel Prize
• Muhammad Yunus has won a number of other
– 1978 President’s award
– 1994 World Food Prize
– 1998 Indira Gandhi Prize
– 2006 Mother Theresa Prize
– 2009 Presidential Medal of Honnor,
awarded by Barack Obama
– 2010 Congressional Gold Medal,
awarded by the U.S Congress
• Yunus received 48 honorary doctorate degrees from universities from Argentina,
Australia, Belgium, Canada, Japan, USA;Spain…
Objective: To promote financial independence
among the poor
Encourages all borrowers to eventually become
Known for “Solidarity Lending” (over 43 countries)
– each borrower must belong to a five-member group
– not required to give any guarantee for a loan to its member
– repayment responsibility only rests on the individual borrower
– no form of joint liability
Incorporates a set of values embodied in
Bangladesh by the Sixteen Decisions
The sixteen decisions to live in
Respect the four principles of the GB
Provide good living standards for families
Repair dilapidated houses and work to build new
Cultivate vegetables the whole year round and sell
Pick out seedlings during the season for planting
Raise small families, reduce expenses to a minimum
and take care of health.
The sixteen Decisions
• Educate children and ensure their earning
• Ensure cleanliness of children and homes
• Build latrines and use them.
• Drink water drawn from wells only. If not,
boil the water or use alum.
• Refuse mariage dowry for sons and not give
one to daughters at their marriage.
The sixteen Decisions
• Cause harm to no one and not tolerate
anyone who does.
• Make important investments in common to
increase our income.
• Always be ready to help each other.
• Help and restore order if we lear that
discipline is not respected in a centre.
• Introduce physical culture in all centres and
to take part in all social events
The Grameen family of organizations has grown
beyond Grameen Bank into a multi-faceted group of
profitable and non-profit ventures.
Grameen Family of Enterprises:
o Grameen Trust, Grameen Fund, Grameen Communications, Grameen
Shakti (Grameen Energy), Grameen Telecom, Grameen Shikkha
(Grameen Education), Grameen Motsho (Grameen Fisheries),
Grameen Baybosa Bikash (Grameen Business Development),
Grameen Phone,Grameen Software Limited, Grameen CyberNet
Limited, Grameen Knitwear Limited
In Bangladesh 97% of houses lack of telephone,
making the nation one of the least wired in the
To provide easy access to telephone services, all
over rural Bangladesh
Telephone as a new weapon against poverty.
The goal is to promote and supply renewable
energy technology at an affordable rate to rural
households of Bangladesh.
Renewable energy applications for poor rural
people is becomes a reality.
Grameen Danone foods
A joint venture launched by Danone and Grameen in
March 2006, Grameen Danone Foods is a usual
business but benefits are reversed to the poors.
The mission of Grameen Danone Foods speaks for
itself: to reduce poverty by bringing health through
food to children using a unique community-based
Grameen Group is also present at the
Grameen Foundation provides microfinance
institutions (MFIs) in poor communities, like in
As of August 2007, it has provided support to 138
replication partners in 37 countries of the world.
They are for example in Egypt ,Cameroon,
Bolivia, Mexico ,India ,United States…
Breaking the vicious cycle of
poverty through microcredit
Intensive discipline, supervision, and servicing
characterize the operations of the Grameen Bank,
which are carried out by "Bicycle bankers" in branch
units with considerable delegated authority.
The rigorous selection of borrowers and their
projects by these bank workers, and pressure to
succeed for borrowers are the keys to success.
Struggling Members Program
2003, started a new program exclusively targeted
the beggars of Bangladesh
distributing small loans to beggars
existing rules of banking are not applied, the loans
are completely interest-free, the repayment period
can be arbitrarily long
e.g. Beggar taking a small loan of around 100 taka
(about US $1.50) can pay only 2.00 taka (about 3.4
US cents) per week. The borrower has a life
insurance free of cost.
Borrowers own 94%, and the remaining 6% is owned by the
Government of Bangladesh
Huge growth between 2003-2007
o October 2007, the total number of borrowers of the bank
approaches 8 million, and 98% of those are women
o 2003, the bank had only 3.12 million members
The bank has distributed Tk 347.75 billion (USD 6.55 billion)
Tk 313.11 billion (USD 5.87 billion) has been repaid
Loan recovery rate is 96.5% in 2009, which is lower than in
2003 (99% )
Bring communinties into debt they cannot escape
The Danone Case
accusation of “aldultered” yogurt.
Accused, to force women to disobey their husband
“Caught in micro-debt”
A norvegian documentary accusing yunus of diverting money and
changing its borrowers annual interest rate