MicroCapital » Yunus Wins Nobel

MICROCAPITAL BRIEF: Bangladeshi Government Reportedly Seeking Control of Grameen Bank Empire

Charlotte Newman — Sat, 11 Feb 2012 17:03:45 +0000

The government of Bangladesh reportedly is taking steps to assert control over some of the 48 firms affiliated with Grameen Bank, a microfinance institution that was founded in Bangladesh in 1976 by Dr Muhammad Yunus. In May 2011, the government forced Dr Yunus from his position as managing director of the bank. Despite the fact that, as of October 2011, 95 percent of Grameen Bank is owned by its borrowers, the government maintains that any stake Grameen Bank has in its other firms rightfully belongs to the government and it should thus have a more powerful hand in Grameen ventures. These firms include Grameenphone, a telecoms provider of which 56 percent is owned by Norway’s Telenor; Grameen Danone Foods, a yogurt-making partnership with French company Danone; Grameen-Veolia, a water company of which 70 percent is owned by French company Veolia Water.

According to Dr Yunus, all of these firms are independent entities, but the government is fighting to unite all firms under a single structure. This is controversial for multiple reasons, including the significant stakes held in the firms by foreign companies.

As of December 31, 2010, Grameen Bank reported to the US-based nonprofit Microfinance Information Exchange total assets of USD 1.7 billion, return on assets (ROA) of 0.7 percent and return on equity (ROE) of 10.7 percent. As of September 30, 2011, Grameen Bank reported a gross loan portfolio of USD 959 million and 8.34 million active borrowers

About Grameen Bank
Grameen Bank is a Bangladeshi microfinance institution that provides loans to poor entrepreneurs in rural areas. It was founded in 1976 by Muhammad Yunus, who, along with Grameen Bank, won the 2006 Nobel Peace Prize for his work in developing the concept of microfinance. As of December 31, 2010, Grameen Bank reported to the US-based nonprofit Microfinance Information Exchange total assets of USD 1.7 billion, return on assets (ROA) of 0.7 percent and return on equity (ROE) of 10.7 percent. As of September 30, 2011, Grameen Bank reported a gross loan portfolio of USD 959 million and 8.34 million active borrowers.

By Charlotte Newman, Research Associate

Sources and Additional Resources:

The Economist: “Grabbing Grameen – Property Rights in Peril in Bangladesh,” http://www.economist.com/node/21543547

Grameen Bank: “Grameen Bank at a Glance,” http://www.grameen-info.org/index.php?option=com_content&task=view&id=26&Itemid=175

MicroCapital.org story, January 5, 2012, “MICROCAPITAL BRIEF: Dr Muhammed Yunus to Seek Court Review of His Removal as Managing Director of Bangladeshi Microfinance Institution Grameen Bank,” http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-to-seek-court-review-of-his-removal-as-managing-director-of-bangladeshi-microfinance-institution-grameen-bank/

MicroCapital.org story, May 17, 2011, “MICROCAPITAL BRIEF: Under Pressure Since February, Dr Muhammed Yunus, Founder of Bangladesh Microfinance Institution (MFI) Grameen Bank, Resigns as Managing Director,” http://www.microcapital.org/microcapital-brief-under-pressure-since-february-dr-muhammad-yunus-founder-of-bangladesh-microfinance-institution-mfi-grameen-bank-resigns-as-managing-director/

MicroCapital Universe Profile: Grameen Bank
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank

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MICROFINANCE EVENT: Muhammad Yunus Documentary “Bonsai People” to be Screened in Los Angeles, New York February 10 – February 16, 2012

Charlotte Newman — Wed, 08 Feb 2012 15:13:58 +0000

Event Name: Bonsai People: The Vision of Dr Muhammad Yunus

Event Date: February 10 – February 16, 2012

Event Location:
Laemmle’s Noho 7, 5240 Lankershim Boulevard, North Hollywood, California 91601 USA
The Quad 34, West 13th Street, New York, New York 10013 USA

See Our Comprehensive Event Calendar Here:
http://microfinanceassociation.ning.com/events

Cost:
Tickets cost USD 11, with a rate of USD 8 available to those aged under 12 or over 61.

Summary of Event: Bonsai People is a 79-minute documentary on Dr Muhammad Yunus and his work in microcredit and social business. The movie was directed by independent filmmaker Holly Mosher and was released in 2010. Dr Yunus founded microfinance institution Grameen Bank in Bangladesh in 1976.

Event Websites:

Laemmle Noho 7: http://www.laemmle.com/viewmovie.php?mid=7807

The Quad: http://www.quadcinema.com/coming-soon/

For additional information you may email Tamra Raven, Distribution Consultant for Bonsai People at bonsaimovie[at]yahoo.com. You may reach Laemmle Noho 7 by telephone at +1 310 478 1041 or The Quad at +1 212 255 2243.

Submit your event at: http://microfinanceassociation.ning.com/events

By Charlotte Newman, Research Associate

Sources and Additional Resources:

Information sent to MicroCapital by Bonsai Movie

Bonsai Movie: http://www.bonsaimovie.com

MicroCapital.org story, December 14, 2010, “MICROCAPITAL BRIEF: Dr Muhammad Yunus, Founder of Grameen Bank and Winner of Nobel Peace Prize for Work in Microfinance, Cleared of Allegations of Illegal Money Transfer to Grameen Kalyan,” http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-founder-of-grameen-bank-and-winner-of-nobel-peace-prize-for-work-in-microfinance-cleared-of-allegations-of-illegal-money-transfer-to-grameen-kalyan/

MicroCapital.org story, October 13, 2010, “MICROCAPITAL BRIEF: Trickle Up, Provider of Grants, Microfinance, Training, Announces Release of Documentary Film ‘The Test of Poverty,’” http://www.microcapital.org/microcapital-brief-trickle-up-provider-of-grants-microfinance-training-announces-release-of-documentary-film-the-test-of-poverty/

MicroCapital.org story, October 17, 2011, “FROM NEXT BILLION: David Satterthwaite on ‘This World Food Day, Making it America’s Last Famine,’” http://www.microcapital.org/from-next-billion-david-satterthwaite-on-this-world-food-day-making-it-africas-last-famine/

MicroCapital Universe Profile: Grameen Bank
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: Muhammad Yunus International Centre for Microfinance and Social Business Launched at Okan University in Turkey

Nisha Koul — Mon, 23 Jan 2012 07:30:28 +0000

The Okan University in Istanbul, Turkey, has launched the Muhammad Yunus International Centre for Microfinance and Social Business, which aims to contribute to poverty reduction and sustainable development by “promoting, developing and implementing social business ideas and projects” [1]. The centre has been named after Dr Muhammad Yunus, the founder of Grameen Bank, a nonprofit microcredit organization in Bangladesh. The centre reportedly will conduct research in social business and microfinance and provide training for academicians and researchers. Dr Yunus is expected to give a lecture at the centre on a yearly basis. Mr Bekir Okan, the founder of Okan University, will be donating USD 2 million towards the initial costs of the centre.

By Nisha Koul, Research Associate

About Grameen Bank: Grameen Bank is a Bangladeshi microfinance institution that provides loans to poor entrepreneurs in rural areas. It was founded in 1976 by Muhammad Yunus, who, along with Grameen Bank, won the 2006 Nobel Peace Prize for his work in developing the concept of microfinance. As of December 31, 2010, Grameen Bank reported to the US-based nonprofit Microfinance Information Exchange total assets of USD 1.7 billion, return on assets (ROA) of 0.7 percent and return on equity (ROE) of 10.7 percent. As of September 30, 2011, Grameen Bank reported a gross loan portfolio of USD 959 million and 8.34 million active borrowers.

Sources and Additional Resources:

[1] Yunus Centre, “Yunus Centre Opens at Turkey’s Okan University,” http://www.muhammadyunus.org/Yunus-Centre-Highlights/yunus-centre-opens-at-turkeys-okan-university/

MicroCapital.org story, January 5, 2012, “MICROCAPITAL BRIEF: Dr Muhammad Yunus to Seek Court Review of His Removal as Managing Director of Bangladeshi Microfinance Institution Grameen Bank,” http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-to-seek-court-review-of-his-removal-as-managing-director-of-bangladeshi-microfinance-institution-grameen-bank/

MicroCapital.org story, October 10, 2011, “MICROCAPITAL BRIEF: Dr Muhammad Yunus to Address Microfinance at Rotary International Convention, Bangkok, Thailand, May 6 – 9, 2012,” http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-to-address-microfinance-at-rotary-international-convention-bangkok-thailand-may-6-%E2%80%93-9-2012/

MicroCapital.org story, September 30, 2011, “MICROCAPITAL BRIEF: Dr Muhammad Yunus Suggests Microfinance “Misinterpreted” as Charity in the Arab World due to Outdated Regulation,” http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-suggests-microfinance-misinterpreted-as-charity-in-the-arab-world-due-to-outdated-regulation/

MicroCapital Universe Profile: Grameen Bank, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: Dr Muhammad Yunus to Seek Court Review of His Removal as Managing Director of Bangladeshi Microfinance Institution Grameen Bank

Kristha Abores — Thu, 05 Jan 2012 13:57:54 +0000

Nobel laureate Dr Muhammad Yunus reportedly has sought a review of the court decision that upheld his removal from his position as managing director of Bangladeshi microfinance institution (MFI) Grameen Bank. His lawyer, Sarah Hussain, was quoted as having said, “We have filed a petition before the Appellate Division of the Supreme Court seeking it to review its own verdict in May this year on ‘grounds of errors of law’.” According to Ms Hussain, the apex court judgment was an inconsistent interpretation of the law [1].

Dr Yunus had challenged the central bank’s decision to remove him from his post based on the grounds that the move was politically motivated. However, the courts subsequently maintained that the appointment of Dr Yunus in 1999 as the managing director of Grameen Bank, without central bank approval, was invalid. The courts also backed the central bank’s argument that Dr Yunus, aged 70, is in violation of the mandatory legal retirement age of 60 years for government employees [2] [3]. Dr Yunus left Grameen Bank in May 2011 [4].

By Kristha Abores, Research Associate

About Grameen Bank:

Grameen Bank is a Bangladeshi microfinance institution that provides loans to poor entrepreneurs in rural areas. It was founded in 1976 by Muhammad Yunus, who, along with Grameen Bank, won the 2006 Nobel Peace Prize for his work in developing the concept of microfinance. As of December 31, 2010, Grameen Bank reported to the US-based nonprofit Microfinance Information Exchange total assets of USD 1.7 billion, return on assets (ROA) of 0.7 percent and return on equity (ROE) of 10.7 percent. As of September 30, 2011, Grameen Bank reported a gross loan portfolio of USD 959 million and 8.34 million active borrowers.

About Bangladesh Bank (BB):

Bangladesh Bank (BB) is the chief regulator of the country’s monetary and financial system. Established in 1972, BB’s mission is to regulate reserves, to manage country’s monetary and credit system and to foster development of the country’s economy. As of December 2010, BB operates nine branches and has a total staff of 5,071. Atiur Rahman was appointed as Bank Governor in 2009 and still serves in that capacity as of 2012.

Sources and Additional Resources:

[1] “Nobel laureate seeks review of dismissal verdict,” http://gulfnews.com/news/world/other-world/nobel-laureate-seeks-review-of-dismissal-verdict-1.958858

[2] MicroCapital.org article, March 25, 2011, “Dr Muhammad Yunus Appeals Bangladesh High Court Decision Upholding His Removal as Managing Director of Microfinance Institution (MFI) Grameen Bank”, http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-appeals-bangladesh-high-court-decision-upholding-his-removal-as-managing-director-of-microfinance-institution-mfi-grameen-bank/

[3] MicroCapital.org article, March 8, 2011, “Bangladeshi Court Confirms Central Bank Decision to Remove Dr Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank”, http://www.microcapital.org/microcapital-brief-bangladeshi-court-confirms-central-bank-decision-to-remove-dr-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank/

[4] MicroCapital.org article, May 17, 2011, “MICROCAPITAL BRIEF: Under Pressure Since February, Dr Muhammad Yunus, Founder of Bangladesh Microfinance Institution (MFI) Grameen Bank, Resigns as Managing Director,” http://www.microcapital.org/microcapital-brief-under-pressure-since-february-dr-muhammad-yunus-founder-of-bangladesh-microfinance-institution-mfi-grameen-bank-resigns-as-managing-director/

MicroCapital.org article, May 16, 2011, “MICROCAPITAL BRIEF: Bangladesh Supreme Court Dismisses Attempt by Dr Muhammad Yunus to Remain as Managing Director of Microfinance Institution (MFI) Grameen Bank,” http://www.microcapital.org/microcapital-brief-bangladesh-supreme-court-dismisses-attempt-by-dr-muhammad-yunus-to-remain-as-managing-director-of-microfinance-institution-mfi-grameen-bank-2/

MicroCapital.org article, April 4, 2011, “Dr Muhammad Yunus Says Borrowers’ Control of Microfinance Institution Grameen Bank is Key to Success”, http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-says-borrowers-control-of-microfinance-institution-grameen-bank-is-key-to-success/

MicroCapital.org article, March 14, 2011, “Crowd of 20,000 Protests Bangladesh Bank Attempts to Remove Dr Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank, US Secretary of State Clinton Among Those Offering Support”, http://www.microcapital.org/microcapital-brief-crowd-of-20000-protests-bangladesh-bank-attempts-to-remove-dr-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank-us-secretary-of-state-clinton-among-those/

MicroCapital.org article, March 2, 2011, “Yunus Continues as Grameen Bank Managing Director after Bangladesh Bank Asks Him to Step Down”, http://www.microcapital.org/microcapital-brief-yunus-continues-as-grameen-bank-managing-director-after-bangladesh-bank-asks-him-to-step-down/

MicroCapital.org article, February 15, 2011, “Bangladeshi Government Asks Yunus to Step Down as Director of Grameen Bank”, http://www.microcapital.org/microcapital-brief-bangladeshi-government-asks-yunus-to-step-down-as-director-of-grameen-bank/

MicroCapital Universe Profile: Grameen Bank, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank

MicroCapital Universe Profile: Bangladesh Bank, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bangladesh+Bank+%28BB%29

Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: Under Pressure Since February, Dr Muhammad Yunus, Founder of Bangladesh Microfinance Institution (MFI) Grameen Bank, Resigns as Managing Director

Rohan Trivedi — Tue, 17 May 2011 05:03:50 +0000

Dr Muhammad Yunus, the founder of Grameen Bank, a nonprofit microcredit organization in Bangladesh, has officially resigned from his post as managing director in accordance with a ruling of the country’s Supreme Court [1]. Bangladesh Bank (BB), the country’s central bank, has successfully argued that Dr Yunus’ original appointment as managing director was invalid and that he has violated the mandatory retirement age of 60 years [2]. Legal hearings lasted nearly three months, during which time Dr Yunus appealed verdicts of the High Court and Supreme Court in an attempt to retain his position at the head of Grameen Bank. Dr Yunus has now tendered his resignation, saying that he hopes that Grameen Bank will be able to return to normal operations and maintain its “independence and character” [1].

The Finance Minister of Bangladesh, AMA Muhith, announced that Grameen Bank Deputy Managing Director Nurjahan Begum will serve as interim managing director until a permanent replacement can be found. The process of establishing new leadership is expected to take approximately three months [1].

Grameen Bank began experimenting with microcredit in 1976 and was transformed into an independent bank by government ordinance in 1983. As of December 31, 2009, Grameen Bank had total assets of USD 1.4 billion, a gross loan portfolio of USD 817 million, return on assets (ROA) of 0.43 percent, return on equity (ROE) of 5.66 percent and 6.43 million active borrowers, as reported to the Microfinance Information Exchange (MIX), the US-based microfinance data provider.

By Rohan Trivedi, Research Associate

About Grameen Bank:
Grameen Bank is a Bangladeshi microfinance institution that provides loans to poor entrepreneurs in rural areas. It was founded in the late 1970’s by Muhammad Yunus, who, along with Grameen Bank, won the 2006 Nobel Peace Prize for his work in developing the concept of microfinance. As of February 2010, Grameen reports 8 million borrowers, 97 percent of whom are women. With 2,563 branches, Grameen Bank provides services in 81,343 villages. Grameen Bank has the equivalent of USD 1.4 billion in assets as of 2009 as indicated by the Microfinance Information Exchange (MIX), the US-based microfinance data provider.

Sources and Additional Resources:

[1] Economic Times, “Yunus quits as Grameen Bank managing director”, http://economictimes.indiatimes.com/news/international-business/yunus-quits-as-grameen-bank-managing-director/articleshow/8289912.cms

[2] MicroCapital.org story, April 4, 2011, “MICROCAPITAL BRIEF: Grameen Foundation Founder Alex Counts Expresses Concern Over Removal of Dr Muhammad Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank”, http://www.microcapital.org/microcapital-brief-grameen-foundation-founder-alex-counts-expresses-concern-over-removal-of-dr-muhammad-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank/

MicroCapital.org story, April 25, 2011, “MICROCAPITAL BRIEF: Rally for Dr Yunus Follows His Removal as Head of Grameen Bank, Analysts Discuss Future”, http://www.microcapital.org/microcapital-brief-rally-for-dr-yunus-follows-his-removal-as-head-of-grameen-bank-analysts-discuss-future-implications/

MicroCapital.org story, March 25, 2011, “MICROCAPITAL BRIEF: Dr Muhammud Yunus Appeals Bangladesh High Court Decision Upholding His Removal as Managing Director of Microfinance Institution (MFI) Grameen Bank”, http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-appeals-bangladesh-high-court-decision-upholding-his-removal-as-managing-director-of-microfinance-institution-mfi-grameen-bank/

MicroCapital Universe Profile: Grameen Bank, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: Bangladesh Supreme Court Dismisses Attempt by Dr Muhammad Yunus to Remain as Managing Director of Microfinance Institution (MFI) Grameen Bank

Alex Pattee — Mon, 16 May 2011 05:03:26 +0000

Bangladesh’s Supreme Court has dismissed Dr Muhammad Yunus’ final bid to overturn the Bangladesh High Court’s ruling upholding the effort of the Bangladesh Bank (BB), the central bank of Bangladesh, to remove Dr Yunus from his position as managing director of Grameen Bank [1] [2] [3].

The Supreme Court dismissed two petitions filed in connection with Dr Yunus’ removal following three days of hearings by a seven-member panel [1]. Judges ruled that Grameen Bank is a government institution, not a private bank as Dr Yunus and his legal team have maintained, meaning that employees must abide by the state’s mandatory retirement age of 60 years old [1]. Deccan Herald newspaper reports that Dr Yunus’ counsel stated, “We are planning to file a review petition with the appellate division against its own judgment after obtaining the copy of the order” [1].

Dr Yunus, had challenged the central bank’s decision based on the grounds that the move was politically motivated. The courts however subsequently uphold the argument that the appointment of Dr Yunus in 1999 as the managing director of Grameen Bank, without central bank approval, was invalid. The courts also back the central bank’s argument that Dr Yunus, aged 70, is in violation of the mandatory legal retirement age of 60 years for government employees [2] [3].

Grameen Bank is a Bangladeshi microfinance institution (MFI) that manages total assets of USD 1.4 billion.

By: Alexandra Pattee, Research Associate

About Grameen Bank: Grameen Bank is a Bangladeshi microfinance institution that provides loans to poor entrepreneurs in rural areas. It was founded in the 1976 by Muhammad Yunus, who, along with Grameen Bank, won the 2006 Nobel Peace Prize for his work in developing the concept of microfinance. As of February 2010, Grameen reports 8 million borrowers, 97 percent of whom are women. With 2,563 branches, Grameen Bank provides services in 81,343 villages. Grameen Bank has the equivalent of USD 1.4 billion in assets as of 2009 as indicated by the Microfinance

Sources and Resources:

[1] Deccan Herald, “Yunus loses final attempt to remain chief of Grameen Bank”, http://www.deccanherald.com/content/159166/yunus-loses-final-attempt-remain.html

[2] MicroCapital.org Article, March 25, 2011, “Dr Muhammad Yunus Appeals Bangladesh High Court Decision Upholding His Removal as Managing Director of Microfinance Institution (MFI) Grameen Bank”, http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-appeals-bangladesh-high-court-decision-upholding-his-removal-as-managing-director-of-microfinance-institution-mfi-grameen-bank/

[3] MicroCapital.org Article, March 8, 2011, “Bangladeshi Court Confirms Central Bank Decision to Remove Dr Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank”, http://www.microcapital.org/microcapital-brief-bangladeshi-court-confirms-central-bank-decision-to-remove-dr-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank/

MicroCapital.org Article, April 4, 2011, “Dr Muhammad Yunus Says Borrowers’ Control of Microfinance Institution Grameen Bank is Key to Success”, http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-says-borrowers-control-of-microfinance-institution-grameen-bank-is-key-to-success/

MicroCapital.org Article, March 14, 2011, “Crowd of 20,000 Protests Bangladesh Bank Attempts to Remove Dr Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank, US Secretary of State Clinton Among Those Offering Support”, http://www.microcapital.org/microcapital-brief-crowd-of-20000-protests-bangladesh-bank-attempts-to-remove-dr-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank-us-secretary-of-state-clinton-among-those/

MicroCapital.org Article, March 2, 2011, “Yunus Continues as Grameen Bank Managing Director after Bangladesh Bank Asks Him to Step Down”, http://www.microcapital.org/microcapital-brief-yunus-continues-as-grameen-bank-managing-director-after-bangladesh-bank-asks-him-to-step-down/

MicroCapital.org Article, February 15, 2011, “Bangladeshi Government Asks Yunus to Step Down as Director of Grameen Bank”, http://www.microcapital.org/microcapital-brief-bangladeshi-government-asks-yunus-to-step-down-as-director-of-grameen-bank/

MicroCapital.org Article, January 10, 2011, “Founder of Grameen Bank and Nobel Peace Prize Winner Dr Muhammad Yunus Speaks Out Against the Commercialization of Microfinance Institutions (MFIs)”, http://www.microcapital.org/microcapital-brief-founder-of-grameen-bank-and-nobel-peace-prize-winner-dr-muhammad-yunus-speaks-out-against-the-commercialization-of-microfinance-institutions-mfis/

MicroCapital.org Article, December 24, 2010, “Bangladesh Government to Investigate Allegations of “Financial Irregularities” Against Microfinance Institution (MFI) Grameen Bank”, http://www.microcapital.org/microfinance-brief-bangladesh-government-to-investigate-allegations-of-%E2%80%9Cfinancial-irregularities%E2%80%9D-against-microfinance-institution-mfi-grameen-bank/

MicroCapital Universe Profile: Grameen Bank, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: Bangladesh Probe Clears Dr Yunus of Misappropriation of Norwegian Aid Money

Medha Ravi — Mon, 02 May 2011 05:03:29 +0000

A recent probe by the government of Bangladesh has cleared Dr Muhammad Yunus, founder of Grameen Bank, of misusing Norwegian aid money. The Norwegian government previously cleared Dr Yunus of any allegations of mishandling funds following the release of a Norwegian documentary in 2010 that accused Dr Yunus of diverting approximately USD 96 million of aid money from Grameen Bank to Grameen Kalyan, a sister company of Grameen Bank that offers affordable health insurance to Grameen members.

Commenting on the fact that no evidence of ‘wrongdoing’ by Dr Yunus was found, AMA Muhith, the finance minister of Bangladesh was quoted as saying, “The probe has accepted that (the Norwegian government’s decision) was final. There is nothing to do about it.” [1].

By Medha Ravi, Research Associate

Source and Resources:

Times of India news article, “Bangladesh probe clears Yunus of misusing aid”, http://articles.timesofindia.indiatimes.com/2011-04-25/south-asia/29470821_1_nobel-laureate-muhammad-yunus-ama-muhith-loans

MicroCapital.org story, December 14, 2010, “MICROCAPITAL BRIEF: Dr Muhammad Yunus, Founder of Grameen Bank and Winner of Nobel Peace Prize for Work in Microfinance, Cleared of Allegations of Illegal Money Transfer to Grameen Kalyan”, http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-founder-of-grameen-bank-and-winner-of-nobel-peace-prize-for-work-in-microfinance-cleared-of-allegations-of-illegal-money-transfer-to-grameen-kalyan/

MicroCapital.org story, December 3, 2010, “MICROCAPITAL BRIEF: Dr Muhammed Yunnus, Winner of Nobel Prize for Work in Microfinance, Accused of Improperly Transferring $100m from Grameen Bank to Insurer Grameen Kalyan”, http://www.microcapital.org/microcapital-brief-dr-muhammed-yunus-winner-of-nobel-prize-for-work-in-microfinance-accused-of-improperly-transferring-100m-from-grameen-bank-to-insurer-grameen-kalyan/

MicroCapital Microfinance Universe Profile: Grameen Bank, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+Microinsurance+Centre

Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: Rally for Dr Yunus Follows His Removal as Head of Grameen Bank, Analysts Discuss Future Implications

Medha Ravi — Mon, 25 Apr 2011 15:32:13 +0000

In Bangladesh, 3.7 million people have reportedly signed a petition urging the prime minister of Bangladesh to allow Dr Yunus to continue as the head of Grameen Bank. The event, organized by “The Citizens’ Committee to Protect the Honour of Nobel Laureate Professor Yunus,” was held after the Bangladesh High Court upheld the argument of the government of Bangladesh invalidating the original appointment of Dr Yunus as the managing director of Grameen Bank.

According to Knowledge@Wharton, the online business journal of the United States’ Wharton School of Business, the removal of Dr Yunus is politically motivated. Dr Yunus’ brief stint in politics in 2007 was viewed as “unwelcome competition” by the current Prime Minister of Bangladesh, Sheikh Hasina. Wharton legal studies professor Nien-hê Hsieh stated that, “If people come to see Grameen Bank as subject to politics and political influence in this way, it [could] certainly be a problem for borrowers. Even if [Yunus's dismissal was] not politically motivated, just the perception that it is could be damaging” [1].

Knowledge@Wharton also raises concern over the lack of succession candidates to succeed Dr Yunus as head of Gramen Bank. According to Stuart Rutherford, an honorary fellow at the University of Manchester’s Brooks World Poverty Institute in the UK, “Given that poor households tend to equate Grameen with Yunus, this means finding some way to keep Yunus as a figurehead.” [1]

By Medha Ravi, Research Associate

Sources and Additional Resources:

[1] Knowledge@Wharton article, “The Ouster of Muhammad Yunus: Can Politics Destroy Grameen Bank?”, http://knowledge.wharton.upenn.edu/article.cfm?articleid=2753

The Daily Star news article, “Rally for Yunus”, http://www.thedailystar.net/newDesign/news-details.php?nid=180359

MicroCapital.org story, April 4, 2011, “Grameen Foundation Founder Alex Counts Expresses Concern Over Removal of Dr Muhammad Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank”, http://www.microcapital.org/microcapital-brief-grameen-foundation-founder-alex-counts-expresses-concern-over-removal-of-dr-muhammad-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank/

MicroCapital.org story, March 14, 2011, “Crowd of 20,000 Protests Bangladesh Bank Attempts to Remove Dr Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank, US Secretary of State Clinton Among Those Offering Support”, http://www.microcapital.org/microcapital-brief-crowd-of-20000-protests-bangladesh-bank-attempts-to-remove-dr-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank-us-secretary-of-state-clinton-among-those/

MicroCapital.org story, March 8, 2011, “Bangladeshi Court Confirms Central Bank Decision to Remove Dr Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank”, http://www.microcapital.org/microcapital-brief-bangladeshi-court-confirms-central-bank-decision-to-remove-dr-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank/

MicroCapital Universe Profile: Grameen Bank, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: Grameen Foundation Founder Alex Counts Expresses Concern Over Removal of Dr Muhammad Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank

Jacqueline Foelster — Mon, 04 Apr 2011 05:19:17 +0000

Founder and chief executive officer Alex Counts of the Grameen Foundation, a US-based nonprofit, recently expressed his concern in an open letter over the removal of Dr Muhammad Yunus as managing director of Grameen Bank, a Bangladeshi microfinance institution (MFI) that manages total assets of USD 1.4 billion [1]. The Bangladesh High Court recently upheld the argument of Bangladesh Bank (BB), the central bank of the country, that the original appointment of Dr Yunus as the managing director of Grameen Bank was invalid and that, at age 70, Dr Yunus is in violation of the mandatory legal retirement age of 60 years [2].

Specifically in his letter, Mr Counts writes that “the sudden departure of the managing director would risk destabilizing Grameen Bank” [1]. Although he commended the Bangladesh government for engaging in a public-private partnership with the Grameen Bank, which he calls “beacon of hope” for combating poverty, he voices his concern over the Bangladeshi government’s move to fire Dr Yunus by exclaiming that “a calculated effort to weaken one of the country’s most important civil society and anti-poverty partners and tarnish one of its leading citizens is, in my judgment, self-defeating and contrary to the nation’s interests” [1].

By Jacqueline Foelster, Research Associate

About Grameen Bank: Grameen Bank is a Bangladeshi microfinance institution that provides collateral-free loans to poor entrepreneurs in rural areas. It was founded in the late 1970′s by Muhammad Yunus, who, along with Grameen Bank, won the 2006 Nobel Peace Prize for his work in developing the concept of microfinance. As of February 2010, Grameen reports 8 million borrowers, 97 percent of whom are women. With 2,563 branches, Grameen Bank provides services through its 81,343 villages. Grameen Bank has the equivalent of USD 1.4 billion in assets as of 2009 as indicated by the Microfinance Information Exchange (MIX), the US-based microfinance data provider.

About Grameen Foundation: The Grameen Foundation, a nonprofit based in Washington, DC, aims to help microfinance institutions throughout the world replicate the microfinance model of the Grameen Bank. It provides financial, technological and managerial support to provide new business opportunities and telecommunication services for poor people in rural areas. Though the Grameen Foundation is independent of the Grameen Bank, Muhammad Yunus, the founder of the Grameen Bank, serves on the foundation’s Board of Directors. Grameen Foundation reported total assets of USD 33.1 million as of March 31, 2010.

About Bangladesh Bank: BB is the chief regulator of the country’s monetary and financial system. Established in 1972, BB’s mission is to regulate reserves, to manage country’s monetary and credit system, and foster development of the country’s economy. As of December 2010, BB operates nine branches and has a total staff of 5,071. Atiur Rahman was appointed as Bank Governor in 2009 and still serves in that capacity as of 2011.

Sources and Additional Resources:

[1] Yunus Centre, “Removal of microcredit bank leader Prof Muhammed Yunus bodes ill for the poor”, http://www.muhammadyunus.org/Yunus-Centre-Highlights/removal-of-microcredit-bank-leader-bodes-ill-for-poor/

[2] MicroCapital.org Brief, March 25, 2011, “Dr Muhammad Yunus Appeals Bangladesh High Court Decision Upholding His Removal as Managing Director of Microfinance Institution (MFI) Grameen Bank”, http://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-appeals-bangladesh-high-court-decision-upholding-his-removal-as-managing-director-of-microfinance-institution-mfi-grameen-bank/

MicroCapital.org Brief, March 14, 2011, “Crowd of 20,000 Protests Bangladesh Bank Attempts to Remove Dr Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank, US Secretary of State Clinton Among Those Offering Support”, http://www.microcapital.org/microcapital-brief-crowd-of-20000-protests-bangladesh-bank-attempts-to-remove-dr-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank-us-secretary-of-state-clinton-among-those/

MicroCapital.org Brief, March 8, 2011, “Bangladeshi Court Confirms Central Bank Decision to Remove Dr Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank”, http://www.microcapital.org/microcapital-brief-bangladeshi-court-confirms-central-bank-decision-to-remove-dr-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank/

MicroCapital Universe Profile: Grameen Bank, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank

MicroCapital Universe Profile: Grameen Foundation, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Foundation

MicroCapital Universe Profile: Bangladesh Bank, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bangladesh+Bank+%28BB%29

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: Dr Muhammad Yunus Says Borrowers’ Control of Microfinance Institution Grameen Bank is Key to Success

Alex Pattee — Mon, 04 Apr 2011 05:03:10 +0000

In an email exchange with US-based newspaper The Wall Street Journal, Grameen Bank founder and Nobel Peace Prize winner Dr Muhammad Yunus has been asked for his thoughts on efforts by the Bangladesh Bank (BB), the central bank of Bangladesh, to remove him from his position as managing director of Grameen Bank [1] [2] [3].

Dr Yunus reportedly stated, “My only concern is for the future of Grameen Bank’s 8.3 million borrowers, almost all of whom are low-income rural women [1]” and that “the real issue at stake is the right of the bank’s 8.3 million borrowers to control their own financial future or whether they will be forced to cede their control to outside authorities [1].” Dr Yunus made clear his stance on the issue, arguing that up until now “Grameen Bank has succeeded due to the fact that it is the borrowers themselves who have been in control of the bank [1].” Grameen Bank is a Bangladeshi microfinance institution (MFI) that manages total assets of USD 1.4 billion.

By: Alexandra Pattee, Research Associate

About Grameen Bank (GB): Grameen Bank is a Bangladeshi microfinance institution that provides collateral-free loans to poor entrepreneurs in rural areas. It was founded in the late 1970′s by Muhammad Yunus, who, along with Grameen Bank, won the 2006 Nobel Peace Prize for his work in developing the concept of microfinance. Bangladesh Bank, the central bank of Bangladesh, holds a 25% stake in Grameen Bank. As of February 2010, Grameen reports 8 million borrowers, 97 percent of whom are women. With 2,563 branches, Grameen Bank provides services in 81,343 villages. Grameen Bank has the equivalent of USD 1.4 billion in assets as of 2009 as indicated by the Microfinance Information Exchange (MIX), the US-based microfinance data provider.

About Bangladesh Bank (BB): Bangladesh Bank (BB) is the central bank of Bangladesh. BB is the chief regulator of the country’s monetary and financial system. Established in 1972, BB’s mission is to regulate reserves, to manage country’s monetary and credit system and to foster development of the country’s economy. As of December 2010, BB operates nine branches and has a total staff of 5,071. Atiur Rahman was appointed as Bank Governor in 2009 and remains in that capacity as of 2011.

[1] Wall Street Journal, “Yunus Says Borrowers are Core of Grameen Bank”, http://online.wsj.com/article/SB10001424052748704438104576219731267941622.html

[3] MicroCapital.org Article, March 8, 2011, “Bangladeshi Court Confirms Central Bank Decision to Remove Dr Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank”, http://www.microcapital.org/microcapital-brief-bangladeshi-court-confirms-central-bank-decision-to-remove-dr-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank/

MicroCapital.org Article, March 14, 2011, “Crowd of 20,000 Protests Bangladesh Bank Attempts to Remove Dr Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank, US Secretary of State Clinton Among Those Offering Support”, http://www.microcapital.org/microcapital-brief-crowd-of-20000-protests-bangladesh-bank-attempts-to-remove-dr-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank-us-secretary-of-state-clinton-among-those/

MicroCapital.org Article, March 2, 2011, “Yunus Continues as Grameen Bank Managing Director after Bangladesh Bank Asks Him to Step Down”, http://www.microcapital.org/microcapital-brief-yunus-continues-as-grameen-bank-managing-director-after-bangladesh-bank-asks-him-to-step-down/

MicroCapital.org Article, February 15, 2011, “Bangladeshi Government Asks Yunus to Step Down as Director of Grameen Bank”, http://www.microcapital.org/microcapital-brief-bangladeshi-government-asks-yunus-to-step-down-as-director-of-grameen-bank/

MicroCapital.org Article, January 10, 2011, “Founder of Grameen Bank and Nobel Peace Prize Winner Dr Muhammad Yunus Speaks Out Against the Commercialization of Microfinance Institutions (MFIs)”, http://www.microcapital.org/microcapital-brief-founder-of-grameen-bank-and-nobel-peace-prize-winner-dr-muhammad-yunus-speaks-out-against-the-commercialization-of-microfinance-institutions-mfis/

MicroCapital.org Article, December 24, 2010, “Bangladesh Government to Investigate Allegations of ‘Financial Irregularities’Against Microfinance Institution (MFI) Grameen Bank”, http://www.microcapital.org/microfinance-brief-bangladesh-government-to-investigate-allegations-of-%E2%80%9Cfinancial-irregularities%E2%80%9D-against-microfinance-institution-mfi-grameen-bank/

MicroCapital’s Microfinance Universe: Grameen Bank, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank

MicroCapital’s Microfinance Universe: Bangladesh Bank, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bangladesh+Bank+%28BB%29

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/