Grameen Bank
The phenomenon of Bangladesh Grameen Bank
Bangladesh Grameen Bank (Grameen) is an important phenomenon of modern times. The brainchild of Dr. Mohammed Yunus, a US educated professor who came to teach at Bangladesh’s University of Chittagong, Grameen is the pioneer of Microfinance.
Microfinance, a lending practice for the poorest of the poor, which was conceptualised by Dr. Yunus in the course of his field work with his students in Bangladesh, has now spread across the world (Holcombe, 1995, p 4 to 13). The poor have historically tended to remain poor and become even poorer because of the reluctance of the formal banking sector to lend them small amounts of money on account of their (a) low incomes and (b) inability to provide collateral. Dr. Yunus brought about a radical change in such thoughts by introducing and implementing a banking system that is able to provide loans without collateral to the poor for setting up small enterprises, charge them viable rates of interest, and yet recover money from them in time (Holcombe, 1995, p 4 to 13).
The microfinance model has become a great success in Bangladesh and has improved the lives of millions of Bangladeshi citizens. Dr. Yunus and Grameen were honoured with the Nobel Prize in 2006. Their microfinance model has been emulated by numerous organisations in different countries (Grameen..., 2010, p1).
This short research study attempts to investigate the growth and operations of Bangladesh Grameen Bank and analyse its PESTEL and SWOT features.
2. Background, Structure and Objectives
The concept for Bangladesh Grameen germinated in Chittagong, Bangladesh, at the instance of Dr. Mohammed Yunus, who came to take up a professorship at the University of Chittagong after completing his PhD from Vanderbilt University. Dr. Yunus, whilst engaged in rural development work with his students in the outskirts of Chittagong, found local villagers to be living in abysmal poverty, (despite working continuously at making small jute
Bangladesh Grameen Bank (Grameen) is an important phenomenon of modern times. The brainchild of Dr. Mohammed Yunus, a US educated professor who came to teach at Bangladesh’s University of Chittagong, Grameen is the pioneer of Microfinance.
Microfinance, a lending practice for the poorest of the poor, which was conceptualised by Dr. Yunus in the course of his field work with his students in Bangladesh, has now spread across the world (Holcombe, 1995, p 4 to 13). The poor have historically tended to remain poor and become even poorer because of the reluctance of the formal banking sector to lend them small amounts of money on account of their (a) low incomes and (b) inability to provide collateral. Dr. Yunus brought about a radical change in such thoughts by introducing and implementing a banking system that is able to provide loans without collateral to the poor for setting up small enterprises, charge them viable rates of interest, and yet recover money from them in time (Holcombe, 1995, p 4 to 13).
The microfinance model has become a great success in Bangladesh and has improved the lives of millions of Bangladeshi citizens. Dr. Yunus and Grameen were honoured with the Nobel Prize in 2006. Their microfinance model has been emulated by numerous organisations in different countries (Grameen..., 2010, p1).
This short research study attempts to investigate the growth and operations of Bangladesh Grameen Bank and analyse its PESTEL and SWOT features.
2. Background, Structure and Objectives
The concept for Bangladesh Grameen germinated in Chittagong, Bangladesh, at the instance of Dr. Mohammed Yunus, who came to take up a professorship at the University of Chittagong after completing his PhD from Vanderbilt University. Dr. Yunus, whilst engaged in rural development work with his students in the outskirts of Chittagong, found local villagers to be living in abysmal poverty, (despite working continuously at making small jute