The government of Bangladesh reportedly is taking steps to assert control over some of the 48 firms affiliated with Grameen Bank, a microfinance institution that was founded in Bangladesh in 1976 by Dr Muhammad Yunus. In May 2011, the government forced Dr Yunus from his position as managing director of the bank. Despite the fact that, as of October 2011, 95 percent of Grameen Bank is owned by its borrowers, the government maintains that any stake Grameen Bank has in its other firms rightfully belongs to the government and it should thus have a more powerful hand in Grameen ventures. These firms include Grameenphone, a telecoms provider of which 56 percent is owned by Norway’s Telenor; Grameen Danone Foods, a yogurt-making partnership with French company Danone; Grameen-Veolia, a water company of which 70 percent is owned by French company Veolia Water.
According to Dr Yunus, all of these firms are independent entities, but the government is fighting to unite all firms under a single structure. This is controversial for multiple reasons, including the significant stakes held in the firms by foreign companies.
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
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.
By Charlotte Newman, Research Associate
Sources and Additional Resources:
The Economist: “Grabbing Grameen – Property Rights in Peril in Bangladesh,” http://www.economist.com/node/21543547
Grameen Bank: “Grameen Bank at a Glance,” http://www.grameen-info.org/index.php?option=com_content&task=view&id=26&Itemid=175
MicroCapital.org story, January 5, 2012, “MICROCAPITAL BRIEF: Dr Muhammed 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 story, May 17, 2011, “MICROCAPITAL BRIEF: Under Pressure Since February, Dr Muhammed 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 Profile: Grameen Bank
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