After a wait of several months, the government of Bangladesh reportedly has vetoed a suggestion made in 2011 by the board of Grameen Bank to task Dr Muhammad Yunus, founder of the bank, with finding a managing director for it. Dr Yunus served in the post of managing director until he was forced out of the position in 2011. According to a statement attributed to Bangladeshi finance minister Ama Muhith, “a previous managing director should not have any role in selecting the next managing director… it is the definite view of the government.” The government has decreed that a search committee will be established at a later date to be determined by consensus of the entire board.
By Charlotte Newman, 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:
The Daily Star: Govt Rejects Yunus-Led MD Search for GB,” http://www.thedailystar.net/newDesign/latest_news.php?nid=36788
MicroCapital.org story, February 11, 2012, “MICROCAPITAL BRIEF: Bangladeshi Government Reportedly Seeking Control of Grameen Bank ‘Empire’,” http://www.microcapital.org/microcapital-brief-bangladeshi-government-reportedly-seeking-control-of-grameen-bank-empire/
MicroCapital.org story, 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 Universe Profile: Grameen Bank
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