Dr Muhammad Yunus, the founder of Grameen Bank, a nonprofit microcredit organization in Bangladesh, has officially resigned from his post as managing director in accordance with a ruling of the country’s Supreme Court [1]. Bangladesh Bank (BB), the country’s central bank, has successfully argued that Dr Yunus’ original appointment as managing director was invalid and that he has violated the mandatory retirement age of 60 years [2]. Legal hearings lasted nearly three months, during which time Dr Yunus appealed verdicts of the High Court and Supreme Court in an attempt to retain his position at the head of Grameen Bank. Dr Yunus has now tendered his resignation, saying that he hopes that Grameen Bank will be able to return to normal operations and maintain its “independence and character” [1].
The Finance Minister of Bangladesh, AMA Muhith, announced that Grameen Bank Deputy Managing Director Nurjahan Begum will serve as interim managing director until a permanent replacement can be found. The process of establishing new leadership is expected to take approximately three months [1].
Grameen Bank began experimenting with microcredit in 1976 and was transformed into an independent bank by government ordinance in 1983. As of December 31, 2009, Grameen Bank had total assets of USD 1.4 billion, a gross loan portfolio of USD 817 million, return on assets (ROA) of 0.43 percent, return on equity (ROE) of 5.66 percent and 6.43 million active borrowers, as reported to the Microfinance Information Exchange (MIX), the US-based microfinance data provider.
By Rohan Trivedi, Research Associate
About Grameen Bank:
Grameen Bank is a Bangladeshi microfinance institution that provides 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 in 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.
Sources and Additional Resources:
[1] Economic Times, “Yunus quits as Grameen Bank managing director”, http://economictimes.indiatimes.com/news/international-business/yunus-quits-as-grameen-bank-managing-director/articleshow/8289912.cms
[2] MicroCapital.org story, April 4, 2011, “MICROCAPITAL BRIEF: Grameen Foundation Founder Alex Counts Expresses Concern Over Removal of Dr Muhammad Yunus as Managing Director of Microfinance Institution (MFI) Grameen Bank”, https://www.microcapital.org/microcapital-brief-grameen-foundation-founder-alex-counts-expresses-concern-over-removal-of-dr-muhammad-yunus-as-managing-director-of-microfinance-institution-mfi-grameen-bank/
MicroCapital.org story, April 25, 2011, “MICROCAPITAL BRIEF: Rally for Dr Yunus Follows His Removal as Head of Grameen Bank, Analysts Discuss Future”, https://www.microcapital.org/microcapital-brief-rally-for-dr-yunus-follows-his-removal-as-head-of-grameen-bank-analysts-discuss-future-implications/
MicroCapital.org story, March 25, 2011, “MICROCAPITAL BRIEF: Dr Muhammud Yunus Appeals Bangladesh High Court Decision Upholding His Removal as Managing Director of Microfinance Institution (MFI) Grameen Bank”, https://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-appeals-bangladesh-high-court-decision-upholding-his-removal-as-managing-director-of-microfinance-institution-mfi-grameen-bank/
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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