An estimated 20,000 employees and customers of Grameen Bank, a Bangladeshi microfinance institution (MFI) that manages total assets of USD 1.4 billion, convened in protest against the move of Bangladesh Bank, the central bank of Bangladesh, to dismiss Nobel laureate Dr Muhammad Yunus as managing director of the MFI [1]. The central bank charges 70-year old Dr Yunus with having been installed in office improperly and with holding office past the legal retirement age of 60.
Some observers argue that the leadership of the country has worked against Dr Yunus since he made preliminary moves toward forming a political party in 2007. Nurul Amin Khandaker, a Grameen Bank accountant, suggests that the ruling is “politically motivated and part of a long campaign to humiliate him”. Grameen Bank announced in a press release that it is seeking legal consultation from its lawyers about further course of action [2].
Dr Yunus has also received support from outside the country, including a phone call from US Secretary of State Hilary Clinton and open letters from the nonprofit Consultative Group to Assist the Poor (CGAP).
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 Bangladesh Bank: The Bank’s mission is to regulate reserves, to manage country’s monetary and credit system, and foster development of the country’s economy. Appointed in 2009, Governor Atiur Rahman directs and controls the affairs of the Bank.
Sources and resources:
[1] Channel News Asia, “Thousands in Bangladesh protest at Yunus sacking”, http://www.channelnewsasia.com/stories/afp_asiapacific/view/1114611/1/.html
[2] Statement from Grameen Bank, http://www.grameen-info.org/dmdocuments/Statement/Statement-English.jpg
Yunus Centre Letter of Support: http://www.muhammadyunus.org/Yunus-Centre-Highlights/public-letter-for-support-for-dr-yunus-and-the-grameen-bank/ and http://www.muhammadyunus.org/Yunus-Centre-Highlights/letters-of-support-from-around-the-world/
Consultative Group to Assist the Poor (CGAP) Letter of Support: http://muhammadyunus.org/Yunus-Centre-Highlights/statement-from-cgap/
U.S. Secretary of State Hillary Clinton Telephones Dr Yunus to Offer Support: http://www.reuters.com/article/2011/03/08/bangladesh-yunus-usa-idUSN0819981620110308?feedType=RSS
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”, https://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 story, March 2, 2011, “Yunus Continues as Grameen Bank Managing Director after Bangladesh Bank Asks Him to Step Down”, https://www.microcapital.org/microcapital-brief-yunus-continues-as-grameen-bank-managing-director-after-bangladesh-bank-asks-him-to-step-down/
MicroCapital Microfinance Universe Profile: Grameen Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank
MicroCapital Microfinance Universe Profile: Bangladesh Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bangladesh+Bank+%28BB%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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