MICROCAPITAL BRIEF: US Secretary of State Hillary Clinton Expresses Concern over Investigation of Bangladeshi Microfinance Institution Grameen Bank

US Secretary of State Hillary Clinton has expressed her support for Nobel Peace Laureate Dr Muhammad Yunus and urged the Bangladeshi government “not to undermine the independence of the Grameen Bank.” Clinton’s statement came approximately two weeks after the Bangladeshi government announced its investigation of Dr Yunus and social businesses associated with Grameen Bank. Since Dr Yunus was pressured to leave his post as managing director of Grameen Bank in 2011, some have maintained that the government is targeting him and institutions affiliated with him on political grounds rather than over substantive issues.

Grameen Bank began experimenting with microcredit in 1976 and was transformed into an independent bank by government ordinance in 1983. 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. For the year 2011, Grameen Bank reported a gross loan portfolio of USD 921 million, total deposits of USD 1.43 billion and 8.37 million active borrowers.

By Brendan Millan, Research Associate

About Dr Muhammad Yunus: Dr Muhammad Yunus is a Bangladeshi banker, economist and Nobel Peace Prize recipient. As a professor of economics, he built on the concepts of microcredit and other forms of microfinance. Dr Yunus is also the founder of Grameen Bank, a Bangladeshi microfinance institution. In 2006, Dr Yunus and the bank were jointly awarded the Nobel Peace Prize.

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. For the year 2011, Grameen Bank reported a gross loan portfolio of USD 921 million, total deposits of 1.43 billion and 8.37 million active borrowers.

Sources and Resources:

[1] USDepartment of State: “Remarks With Bangladesh Foreign Minister Dipu Moni”, http://www.state.gov/secretary/rm/2012/05/189366.htm

[2] BBC: “Clinton backs microcredit pioneer Yunus in Bangladesh”, http://www.bbc.co.uk/news/world-asia-17973267

MicroCapital.org Article, April 24, 2012,MICROCAPITAL BRIEF: Bangladeshi Government to Investigate Muhammad Yunus, Social Businesses Associated With Microfinance Institution Grameen Bank”, https://www.microcapital.org/microcapital-brief-bangladeshi-government-to-investigate-muhammad-yunus-social-businesses-associated-with-microfinance-institution-grameen-bank/

MicroCapital.org Article, April 13, 2012, “MICROCAPITAL BRIEF: Bangladesh Government Declines to Have Muhammad Yunus Recruit New Managing Director of Microfinance Institution Grameen Bank”,https://www.microcapital.org/microcapital-brief-bangladesh-government-declines-to-have-muhammad-yunus-recruit-new-managing-director-of-microfinance-institution-grameen-bank/

MicroCapital.org Article, February 28, 2012, “MICROCAPITAL BRIEF: Bangladeshi Prime Minister Proposes Microfinance Pioneer Muhammad Yunus as Next World Bank President”,https://www.microcapital.org/microcapital-brief-bangladeshi-prime-minister-proposes-microfinance-pioneer-muhammad-yunus-as-next-world-bank-president/

MicroCapital.org Article, February 11, 2012, “MICROCAPITAL BRIEF: Bangladeshi Government Reportedly Seeking Control of Grameen Bank ‘Empire’”, https://www.microcapital.org/microcapital-brief-bangladeshi-government-reportedly-seeking-control-of-grameen-bank-empire/

MicroCapital.org Article, January 5, 2012, “MICROCAPITAL BRIEF: Dr Muhammad Yunus to Seek Court Review of His Removal as Managing Director of Bangladeshi Microfinance Institution Grameen Bank”,https://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 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”, https://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: Muhammad Yunus, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Muhammad+Yunus

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

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

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