The Bangladesh High Court ruled on March 8, 2011, in favor of the effort by Bangladesh Bank, the central bank of Bangladesh, to remove Nobel laureate Dr Muhammad Yunus from his position as managing director of Grameen Bank, a Bangladeshi microfinance institution (MFI) that manages total assets of USD 1.4 billion as of 2009.
Dr Yunus had challenged the central bank’s decision based on the grounds that the move was politically motivated. The court however subsequently upheld the argument that the appointment of Dr Yunus in 1999 as the managing director of Grameen Bank, without central bank approval, was invalid. The court also backed the central bank’s argument that Dr Yunus, aged 70, is in violation of the mandatory legal retirement age of 60 years.
It has been reported by Anbarasan Ethirajan, a correspondent for UK-based broadcaster British Broadcasting Corporation (BBC) in Dhaka, that Dr Yunus has the right to appeal against this decision before Bangladesh’s Supreme Court [1].
By Medha Ravi, 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:
Established in 1972, the Bangladesh Bank (BB) is the central bank of the country. 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.
Source and Resources:
[1] BBC news article, “Court upholds sacking of Grameen founder Muhammad Yunus”, http://www.bbc.co.uk/news/world-south-asia-12673293
Wall street journal news article, “Court Upholds Yunus Sacking from Grameen”,
http://online.wsj.com/article/SB10001424052748704758904576187940676522926.html
MicroCapital.org story, March 2, 2011, “MICROCAPITAL BRIEF: 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.org story, January 10, 2011, “MICROCAPITAL BRIEF: Founder of Grameen Bank and Nobel Peace Prize Winner Dr Muhammad Yunus Speaks Out Against the Commercialization of Microfinance Institutions (MFIs)”, https://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 story, December 24, 2010, “MICROCAPITAL BRIEF: Bangladesh Government to Investigate Allegations of ‘Financial Irregularities’ Against Microfinance Institution (MFI) Grameen Bank”, https://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 Profile: Grameen Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank
MicroCapital’s 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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