Bangladesh Bank, the central bank of Bangladesh, has reportedly attempted to remove Nobel laureate Dr Muhammad Yunus from his position as managing director of Grameen Bank, a microfinance institution (MFI) based in Bangladesh in which the government holds a 25-percent stake. The central bank is ordering Dr Yunus’ removal from office on the grounds that, at the age of 70, Dr Yunus exceeds the retirement age limit of 60. Furthermore, Muzammel Huq, the government-appointed chairman of Grameen Bank, alleges that Dr Yunus did not receive the required approval from Bangladesh Bank for his appointment as managing director [1]. Grameen Bank released a statement indicating that Dr Yunus is continuing in his position per the recommendations of the bank’s legal advisers [2]. Supporters of Dr Yunus have argued that this development is the latest in a series of politically-motivated attempts to remove Dr Yunus from his position since Dr Yunus’ attempt to set up a new political party in 2007.
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 on the Microfinance Information Exchange (MIX), the US-based microfinance data provider.
Sources and Resources
[1] BBC News, March 2, 2011, “Bangladesh: Muhammad Yunus disputes Grameen sacking”, http://www.bbc.co.uk/news/world-middle-east-12619580
[2] Grameen Bank, March 2, 2011, “Statement of Grameen Bank”, http://www.grameen-info.org/dmdocuments/Statement/Statement_of_GB_English.gif
MicroCapital.org Article, February 15, 2011, “Bangladeshi Government Asks Yunus to Step Down as Director of Grameen Bank”, https://www.microcapital.org/microcapital-brief-bangladeshi-government-asks-yunus-to-step-down-as-director-of-grameen-bank/
MicroCapital Microfinance Universe: 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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