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Grameen Bank (GB)
Type Body Corporate (Bank Ordinance)
Founded 1983
Headquarters Dhaka, Bangladesh
Area served Bangladesh
Key people Muhammad Yunus, founder
Industry Finance
Products Financial Services
Microfinance
Revenue 6,335,566,324 Taka (92.3 million USD) (2006)[1]
Operating income 5,959,675,013 Taka (86.9 million USD) (2006)[1]
Net income 1,398,155,030 Taka (20.3 million USD) (2006)[1]
Total assets 59,383,621,728 Taka (2006)[2]
Employees 24,703 (Oct 2007)[3]
Website http://www.grameen-info.org/

The Grameen Bank (Bengali: গ্রামীণ ব্যাংক) is a microfinance organization and community development bank started in Bangladesh that makes small loans (known as microcredit or "grameencredit"[4]) to the impoverished without requiring collateral. The word "Grameen", derived from the word "gram" or "village", means "of the village". The system of this bank is based on the idea that the poor have skills that are under-utilized. A group-based credit approach is applied which utilizes the peer-pressure within the group to ensure the borrowers follow through and use caution in conducting their financial affairs with strict discipline, ensuring repayment eventually and allowing the borrowers to develop good credit standing. The bank also accepts deposits, provides other services, and runs several development-oriented businesses including fabric, telephone and energy companies. Another distinctive feature of the bank's credit program is that a significant majority of its borrowers are women.

The origin of Grameen Bank can be traced back to 1976 when Professor Muhammad Yunus, a Fulbright scholar at Vanderbilt University and Professor at University of Chittagong, launched a research project to examine the possibility of designing a credit delivery system to provide banking services targeted to the rural poor. In October 1983, the Grameen Bank Project was transformed into an independent bank by government legislation. The organization and its founder, Muhammad Yunus, were jointly awarded the Nobel Peace Prize in 2006;[5] the organisation's Low-cost Housing Programme won a World Habitat Award in 1998.

Contents

History

Muhammad Yunus, the bank's founder, earned a doctorate in economics from Vanderbilt University in the United States. He was inspired during the terrible Bangladesh famine of 1974 to make a small loan of US$27.00 to a group of 42 families so that they could create small items for sale without the burdens of predatory lending.[6] Yunus believed that making such loans available to a wide population would have a positive impact on the rampant rural poverty in Bangladesh.

Nobel Laureate Muhammad Yunus, the bank's founder

The Grameen Bank (literally, "Bank of the Villages", in Bangla) is the outgrowth of Yunus' ideas. The bank began as a research project by Yunus and the Rural Economics Project at Bangladesh's University of Chittagong to test his method for providing credit and banking services to the rural poor. In 1976, the village of Jobra and other villages surrounding the University of Chittagong became the first areas eligible for service from Grameen Bank.[7] The Bank was immensely successful and the project, with support from the central Bangladesh Bank, was introduced in 1979 to the Tangail District (to the north of the capital, Dhaka).[7] The bank's success continued and it soon spread to various other districts of Bangladesh. By a Bangladeshi government ordinance on October 2, 1983, the project was transformed into an independent bank.[7] Bankers from ShoreBank, a community development bank in Chicago, helped Yunus with the official incorporation of the bank under a grant from the Ford Foundation.[8] The bank's repayment rate was hit following the 1998 flood of Bangladesh before recovering again in subsequent years. By the beginning of 2005, the bank had loaned over USD 4.7 billion[9] and by the end of 2008, USD 7.6 billion[10] to the poor.

The Bank today continues to expand across the nation and still provides small loans to the rural poor. By 2006, Grameen Bank branches numbered over 2,100.[11] Its success has inspired similar projects in more than 40 countries around the world and has made World Bank to take an initiative to finance Grameen-type schemes.[12]

The bank gets its funding from different sources, and the main contributors have shifted over time. In the initial years, donor agencies used to provide the bulk of capital at very cheap rates. In the mid-1990s, the bank started to get most of its funding from the central bank of Bangladesh. More recently, Grameen has started bond sales as a source of finance. The bonds are implicitly subsidised as they are guaranteed by the Government of Bangladesh and still they are sold above the bank rate.[13]

Application of microcredit

16 Decisions[14]
  1. We shall follow and advance the four principles of Grameen Bank: Discipline, Unity, Courage and Hard work – in all walks of our lives.
  2. Prosperity we shall bring to our families.
  3. We shall not live in dilapidated houses. We shall repair our houses and work towards constructing new houses at the earliest.
  4. We shall grow vegetables all the year round. We shall eat plenty of them and sell the surplus.
  5. During the plantation seasons, we shall plant as many seedlings as possible.
  6. We shall plan to keep our families small. We shall minimize our expenditures. We shall look after our health.
  7. We shall educate our children and ensure that they can earn to pay for their education.
  8. We shall always keep our children and the environment clean.
  9. We shall build and use pit-latrines.
  10. We shall drink water from tubewells. If it is not available, we shall boil water or use alum.
  11. We shall not take any dowry at our sons' weddings, neither shall we give any dowry at our daughter's wedding. We shall keep our centre free from the curse of dowry. We shall not practice child marriage.
  12. We shall not inflict any injustice on anyone, neither shall we allow anyone to do so.
  13. We shall collectively undertake bigger investments for higher incomes.
  14. We shall always be ready to help each other. If anyone is in difficulty, we shall all help him or her.
  15. If we come to know of any breach of discipline in any centre, we shall all go there and help restore discipline.
  16. We shall take part in all social activities collectively.
Grameen Bank Building in Dhaka

Grameen Bank is best known for its system of solidarity lending.[12] The Bank also incorporates a set of values embodied in Bangladesh by the Sixteen Decisions.[15] At every branch of Grameen Bank the borrowers recite these Decisions and vow to follow them. As a result of the Sixteen Decisions, Grameen borrowers have been encouraged to adopt positive social habits. One such habit includes educating children by sending them to school. Since the Grameen Bank embraced the Sixteen Decisions, almost all Grameen borrowers have their school-age children enrolled in regular classes. This in turn helps bring about social change, and educate the next generation.[16]

Solidarity lending is a cornerstone of microcredit and the system is now at work in over 43 countries. Although each borrower must belong to a five-member group, the group is not required to give any guarantee for a loan to its member. Repayment responsibility solely rests on the individual borrower, while the group and the centre oversee that everyone behaves in a responsible way and none gets into a repayment problem. There is no form of joint liability, i.e. group members are not obliged to pay on behalf of a defaulting member. However, in practice the group members often contribute the defaulted amount with an intention of collecting the money from the defaulted member at a later time. Such behavior is facilitated by Grameen's policy of not extending any further credit to a group in which a member defaults.[17]

There is no legal instrument (no written contract) between Grameen Bank and its borrowers, the system works based on trust.[18] To supplement the lending, Grameen Bank also requires the borrowing members to save very small amounts regularly in a number of funds like emergency fund, group fund etc. These savings help serve as an insurance against contingencies.[12]

In a country in which few women may take out loans from large commercial banks, Grameen has focused on women borrowers as 97% of its members are women.[3] While a World Bank study has concluded that women's access to microcredit empowers them through greater access to resources and control over decision making, some other economists argue that the relationship between microcredit and women-empowerment is less straight-forward.[19] In other areas, Grameen's track record has also been notable, with very high payback rates—over 98 percent. However, according to the Wall Street Journal, a fifth of the bank's loans were more than a year overdue in 2001.[20] Grameen claims that more than half of its borrowers in Bangladesh (close to 50 million) have risen out of acute poverty thanks to their loan, as measured by such standards as having all children of school age in school, all household members eating three meals a day, a sanitary toilet, a rainproof house, clean drinking water and the ability to repay a 300 taka-a-week (around 4 USD) loan.[21]

Village Phone Program

Among many different applications of microcredit by the bank, one is the Village Phone program, through which women entrepreneurs can start a business providing wireless payphone service in rural areas of Bangladesh. This program earned the bank the 2004 Petersburg Prize worth of EUR 100,000/-, for its contribution of Technology to Development.[22] In the press release announcing the prize, the Development Gateway Foundation noted that through this program:

...Grameen has created a new class of women entrepreneurs who have raised themselves from poverty. Moreover, it has improved the livelihoods of farmers and others who are provided access to critical market information and lifeline communications previously unattainable in some 28,000 villages of Bangladesh. More than 55,000 phones are currently in operation, with more than 80 million people benefiting from access to market information, news from relatives, and more.[22]

Struggling members program

In 2003, Grameen Bank started a new program, different from its traditional group-based lending, exclusively targeted to the beggars in Bangladesh.[23] This program is focused on distributing small loans to beggars. The existing rules of banking are not applied, the loans are completely interest-free, the repayment period can be arbitrarily long, for example, a beggar taking a small loan of around 100 taka (about US $1.50) can pay only 2.00 taka (about 3.4 US cents) per week and furthermore the borrower is covered under life insurance free of cost.

The bank does not force borrowers to give up begging; rather it encourages them to use the loans for generating income by selling low-priced items. Based on a paper presented in the Global Microcredit Summit in 2006 by one of the bank's managers, as of May 2006, around 73,000 beggars have taken loans of about Tk 58.32 million (approx. USD 833,150) and repaid Tk. 34.78 million (about USD 496,900).[24]

Operational statistics

One unusual feature of the Grameen Bank is that it is owned by the poor borrowers of the bank, most of whom are women. Of the total equity of the bank, the borrowers own 94%, and the remaining 6% is owned by the Government of Bangladesh.[3]

The bank has grown significantly between 2003-2007. As of October 2007, the total borrowers of the bank number 7.34 million, and 97% of those are women.[3] The number of borrowers has more than doubled since 2003, when the bank had only 3.12 million members.[25] Similar growth can be observed in the number of villages covered. As of October 2007, the Bank has a staff of over 24,703 employees and 2,468 branches covering 80,257 villages,[3] up from 43,681 villages covered in 2003.[25] Since its inception, the bank has distributed Tk 347.75 billion (USD 6.55 billion) in loans. Out of this, Tk 313.11 billion (USD 5.87 billion) has been repaid.[3] The bank claims a loan recovery rate of 98.35%, up from the 95% recovery rate claimed in 1998.[26] The Wall Street Journal, in November, 2001, published an article expressing doubt about the 95% recovery rate from 1996 and the accounting practices that Grameen used to determine this rate.[20]

Nobel Peace Prize

Grameen Bank received several prestigious awards including the highest civilian award in Bangladesh, the Independence Day Award, in 1994. However, the greatest recognition of the bank's achievements came on October 13, 2006, when the Nobel Committee awarded Grameen Bank and its founder, Muhammad Yunus, the 2006 Nobel Peace Prize "for their efforts to create economic and social development from below."[27] The award announcement also mentions that:

From modest beginnings three decades ago, Yunus has, first and foremost through Grameen Bank, developed micro-credit into an ever more important instrument in the struggle against poverty. Grameen Bank has been a source of ideas and models for the many institutions in the field of micro-credit that have sprung up around the world.[27]

On December 10, 2006, Mosammat Taslima Begum, who used her first 16-euro (20-dollar) loan from the bank in 1992 to buy a goat and subsequently became a successful entrepreneur and one of the elected board members of the bank, accepted the Nobel Prize on behalf of Grameen Bank's investors and borrowers at the prize awarding ceremony held at Oslo City Hall.[28]

Grameen Bank is the only business corporation to have won a Nobel Prize. In a speech given at the presentation ceremony, Professor Ole Danbolt Mjøs, Chairman of the Norwegian Nobel Committee, mentioned that, by giving the prize to Grameen Bank and Muhammad Yunus, the Norwegian Nobel Committee wished to focus attention on dialogue with the Muslim world, on the women's perspective, and on the fight against poverty.[29]

The Nobel prize announcement was celebrated with a lot of enthusiasm in Bangladesh.[30] Some critics asserted that the award affirms neoliberalism.[19]

Related ventures

The Grameen Bank has grown into over two dozen enterprises represented by the Grameen Family of Enterprises. These organizations include Grameen Trust, Grameen Fund, Grameen Communications, Grameen Shakti (Grameen Energy), Grameen Telecom, Grameen Shikkha (Grameen Education), Grameen Motsho (Grameen Fisheries), Grameen Baybosa Bikash (Grameen Business Development), Grameen Phone, Grameen Software Limited, Grameen CyberNet Limited, Grameen Knitwear Limited, and Grameen Uddog (owner of the brand Grameen Check).[31]

On July 11, 2005 the Grameen Mutual Fund One (GMFO), approved by the Securities and Exchange Commission of Bangladesh, was listed as an Initial Public Offering. One of the first mutual funds of its kind, GMFO will allow the over four million Grameen bank members, as well as non-members, to buy into Bangladesh's capital markets. The Bank and its constituents are together worth over USD 7.4 billion.[32]

The work of Grameen Bank in Bangladesh Inspired the creation of the Grameen Foundation, which aims to share the Grameen philosophy and accelerate the impact of microfinance on the world’s poorest people.[33] Grameen Foundation, which has an A-rating from Charity Watch,[34] not only provides microloans in the USA itself (the only rich country where this is done), but also supports microfinance institutions worldwide with loan guarantees, training, and technology transfer.[35] As of 2008, Grameen Foundation supports microfinance institutions in the following regions:[36]

Criticism

Sudhirendar Sharma, a development analyst, claims the Bank has "landed poor communities in a perpetual debt-trap",[37] and that its ultimate benefit goes to the corporations that sell capital goods and infrastructure to the borrowers.[38] It has attracted criticism from the former Prime Minister of Bangladesh, Sheikh Hasina, who commented, "There is no difference between usurers [Yunus] and corrupt people."[39]

Hasina touches upon one criticism of Grameen Bank: the high rate of interest it demands from those seeking credit.[40] Similar to all microfinance institutes, the interest charged by Grameen Bank is high compared to that of traditional banks, as Grameen's interest (reducing balance basis) on its main credit product is about 20%.[41] The Mises Institute's Jeffrey Tucker has criticized the Bank,[42] asserting it and others based on the Grameen model are not economically viable and depend on subsidies in order to operate, thus essentially becoming another example of welfare. They disregard Yunus' claims that he is working against subsidized economy, giving borrowers the opportunity to make business. Another source of criticism is that of the Grameen's Sixteen Decisions.[43] Critics say the bank's Sixteen Decisions force families and borrowers to abide by the rules and regulations set forth by the bank. However, they do not make clear why the leading principles (unity, courage, discipline and hard work) and some rules set up by the bank, like living in healthy houses in good repair, not drinking unsafe water or refusing to give dowries for daughters, can be bad for borrowers. They mostly object to the requisite of having to make a borrower club to cover defaults, which they disqualify as a totalitarian tool, instead of a community building strategy. David Roodman[44] and Jonathan Morduch[45] disagreed with a statistic once often cited by Yunus, that “5% of the Grameen borrowers get out of poverty every year.” Reanalyzing the underlying study, they obtained opposite results. But they did not interpret these to imply that lending to women made families poorer. Rather, the negative causality may go the other way: women in richer families may borrow less.[46]

See also

References

  1. ^ a b c Ahmed & Ahmed (Chartered Accountants) (2007-08-01). "GRAMEEN BANK Profit and Loss Account, for the year ended 31 December 2006" (PDF). Auditors’ Report and Financial Statements OF Grameen Bank. Grameen Communications. http://www.grameen-info.org/bank/auditreport/AuditReport2006/placcounts.pdf. Retrieved 2008-01-17.  
  2. ^ Ahmed & Ahmed (Chartered Accountants) (2007-08-01). "GRAMEEN BANK Balance Sheet, As at 31 December 2006" (PDF). Auditors’ Report and Financial Statements OF Grameen Bank. Grameen Communications. http://www.grameen-info.org/bank/auditreport/AuditReport2006/blancesheet.pdf. Retrieved 2008-01-17.  
  3. ^ a b c d e f "Grameen Bank At a Glance". Grameen Communications. http://www.grameen-info.org/index.php?option=com_content&task=view&id=26&Itemid=175. Retrieved 2009-07-07.  
  4. ^ Grameen Bank What is Microcredit
  5. ^ "The Nobel Prize for 2006". The Nobel Peace Prize for 2006. 2006-10-13. http://nobelprize.org/nobel_prizes/peace/laureates/2006/press.html. Retrieved 2006-10-13.  
  6. ^ Anand Giridharas and Keith Bradsher (2006-10-13). "Microloan Pioneer and His Bank Win Nobel Peace Prize". New York Times. http://www.nytimes.com/2006/10/13/business/14nobelcnd.html. Retrieved 2006-10-13.  
  7. ^ a b c Rahman, Aminur (2001). Women and Microcredit in Rural Bangladesh: Anthropological Study of Grameen Bank Lending. Boulder, Colorado: Westview Press. p. 4. ISBN 0-8133-3930-8.  
  8. ^ Brandon Glenn (2006-10-16). "ShoreBank leaders had hand in Nobel prize". Chicago Business News. http://www.chicagobusiness.com/cgi-bin/news.pl?id=22455&rel=1. Retrieved 2007-05-15.  
  9. ^ Papa, Michael J.; Arvind Singhal and Wendy H. Papa (2006). Organizing for Social Change: A Dialectic Journey of Theory and Praxis. Sage Publications. p. 72. ISBN 0761934359.  
  10. ^ Grameen Bank Historical Data. Retrieved June 22, 2009.
  11. ^ "Bangladeshi banker wins Nobel Peace Prize". United Press International. 2006-10-13.  
  12. ^ a b c Khandker, Shahidur R.; Baqui, M. A. & Khan Z. H. (1995) [1995]. Grameen Bank: Performance and Sustainability. World Bank Publications. p. vi. ISBN 0821334638. http://books.google.com.sg/books?hl=en&lr=&id=rNN3Dfxcc3oC&oi=fnd&pg=PR5&dq=grameen+bank&ots=NWEF1ebHUI&sig=5qYr4t_ewY4jmKa1RmC9oDSYFq0. Retrieved 2008-01-16.  
  13. ^ *Morduch, Jonathan (October 1999). "The role of subsidies in microfinance: evidence from the Grameen Bank" (PDF). Journal of Development Economics (Elsevier) 60 (1): p 240. doi:10.1016/S0304-3878(99)00042-5. http://www.nyu.edu/projects/morduch/documents/microfinance/Role_of_Subsidies.pdf. Retrieved 2008-01-16.  
  14. ^ Sherraden, Margaret S. (1998). Community Economic Development and Social Work. Binghamton, New York: Haworth Press. pp. 113–114. ISBN 0-7890-0506-9.  
  15. ^ Siddiqui, Kamal, An Evaluation of the Grameen Bank Operation (Dhaka: National Institute of Local Government, 1984)
  16. ^ Ghista, Garda (2004). "Bangladesh:Towards Economic and Women’s Liberation Via Grameen Bank". ProutWorld. http://www.proutworld.org/features/bangldesh.htm. Retrieved 2008-02-04.  
  17. ^ Hossain, Mahabub (1988) [1988]. Credit for Alleviation of Rural Poverty: The Grameen Bank in Bangladesh. Int Food Policy Res Inst IFPRI. p. 7. ISBN 0896290670. http://books.google.com.sg/books?hl=en&lr=&id=GkrRrt_ao50C&oi=fnd&pg=PA7&dq=grameen+bank&ots=YpRKHvi-x_&sig=zHG-ScV4T9DQnQwuy77WsyGTOHA#PPA29,M1. Retrieved 2008-01-16.  
  18. ^ Sinclair, Paul (2007-12-22). "Grameen Micro-Credit & How to End Poverty from the Roots Up". One World One People. http://www.oneworldonepeople.org/articles/World%20Poverty/Grameen.htm. Retrieved 2008-02-04.  
  19. ^ a b Feiner, Susan F.; Barker, Drucilla K. (Nov-Dec 2006), "Microcredit and Women's Poverty", Dollar & Sense, The magazine of Economic Justice, Boston, USA: Economic Affairs Bureau, Inc., http://www.dollarsandsense.org/archives/2006/1106feinerbarker.html  
  20. ^ a b Daniel Perl, Michael M. Phillips (2001-11-27). "Grameen Bank, Which Pioneered Loans For the Poor, Has Hit a Repayment Snag". Wall Street Journal. http://online.wsj.com/public/resources/documents/pearl112701.htm. Retrieved 2008-03-25.  
  21. ^ Fraser, Ian (2007-08-03). "Microfinance comes of age". Cover Story. Scottish Banker magazine. http://www.social-capital.net/articles/view.php?viewid=151. Retrieved 2008-01-30.  
  22. ^ a b "Grameen Bank-Village Phone Wins Global Competition for Contribution of Technology to Development" (PDF). Development Gateway Foundation (Washington, DC). 2004-07-27. http://www.developmentgateway.org/download/249636/Petersberg_winner.pdf. Retrieved 2008-01-31.  
  23. ^ Yunus, Muhammad (July 2005). "Grameen Bank's Struggling (Beggar) Members Programme". Grameen Communications. http://www.grameen-info.org/bank/BeggerProgram.html. Retrieved 2008-01-31.  
  24. ^ Barua, D. C. (2006-11-12). "Five Cents a Day: Innovative Programs for Reaching the Destitute with Microcredit, No-interest Loans, and other Instruments: The Experience of Grameen Bank" (PDF). Global Microcredit Summit; Nova Scotia, Canada. Nova Scotia, Canada. http://www.microcreditsummit.org/papers/Workshops/7_Barua.pdf. Retrieved 2008-01-20.  
  25. ^ a b "Grameen Bank Historical Data Series 2003". Grameen Communications. 2004-07-21. http://www.grameen-info.org/bank/hist2003.html. Retrieved 2008-01-17.  
  26. ^ "Credit delivery system". Grameen Communications. 2002-09-18. http://www.grameen-info.org/bank/cds.html. Retrieved 2008-01-17.  
  27. ^ a b "The Nobel Peace Prize for 2006". The Nobel Peace Prize for 2006. 2006-10-13. http://nobelprize.org/nobel_prizes/peace/laureates/2006/press.html. Retrieved 2006-10-13.  
  28. ^ "Yunus unveils vision to end global poverty". The Daily Star. 2006-12-11. Vol 5 Num 903. http://www.thedailystar.net/2006/12/11/d6121101011.htm. Retrieved 2008-01-31.  
  29. ^ Mjøs, Ole Danbolt (2006-10-13). "The Nobel Peace Prize for 2006: Presentation Speech". The Nobel Peace Prize for 2006. http://nobelprize.org/nobel_prizes/peace/laureates/2006/presentation-speech.html. Retrieved 2008-02-04.  
  30. ^ "Nation parties on Nobel win". The Daily Star. 2006-10-15. Vol 5 Num 850. http://www.thedailystar.net/2006/10/15/d6101501011.htm. Retrieved 2008-02-04.  
  31. ^ "Grameen Family of Enterprises". Grameen Website. Grameen Communications. 2007-11-28. http://www.grameencommunications.com/gfamily.html. Retrieved 2009-07-08.  
  32. ^ "Credit where credit is due: The banker who changed the world". The Independent. 2006-10-14. http://news.independent.co.uk/world/asia/article1870835.ece. Retrieved 2008-01-17.  
  33. ^ "Grameen Foundation Annual Report 2006" (PDF). Grameen Foundation, Washington, DC, USA. 2007-08-01. http://www.grameenfoundation.org/docs/resource_center/GrameenFoundation-AnnualReport2006.pdf. Retrieved 2008-01-31.  
  34. ^ "Top Rated Carities". American Institute of Philanthropy. 2008-01-15. http://www.charitywatch.org/toprated.html. Retrieved 2008-01-17.  
  35. ^ "Grameen Foundation USA". 25 entrepreneurs who are changing the world. Fast Company Monitor Group. http://www.fastcompany.com/social/2006/statements/grameen.html. Retrieved 2008-01-29.  
  36. ^ "Where we work | Grameen Foundation". Grameen Foundation<!. http://www.grameenfoundation.org/where_we_work/. Retrieved 2009-12-20.  
  37. ^ Sharma, Sudhirendar (2002-09-25). "Is micro-credit a macro trap?". The Hindu. http://www.hinduonnet.com/businessline/2002/09/25/stories/2002092500810900.htm. Retrieved 2006-12-02.  
  38. ^ Sharma, Sudhirendar (2002-01-05). "Microcredit: Globalisation unlimited". The Hindu. http://www.thehindubusinessline.com/2002/01/05/stories/2002010500111200.htm. Retrieved 2006-12-02.  
  39. ^ "A new party for Bangladesh's fray". Economist. 2007-02-22. http://www.economist.com/world/asia/displaystory.cfm?story_id=E1_RSQNJQJ. Retrieved 2008-01-31.  
  40. ^ IANS (2007-02-18). "Sheikh Hasina sneers at Nobel winner Yunus's bid to enter politics". Webindia123.com. http://news.webindia123.com/news/ar_showdetails.asp?id=702180187&cat=&n_date=20070218. Retrieved 2008-02-02.  
  41. ^ Fernando, Nimal A. (May 2006) (PDF). Understanding and Dealing with High Interest Rates on Microcredit - A Note to Policy Makers in the Asia and Pacific Region. Manila, Philippines: ADB. p. 8. http://www.adb.org/Documents/Books/interest-rates-microcredit/Microcredit-Understanding-Dealing.pdf.  
  42. ^ Tucker, Jeffrey (November 1995). "The Micro-Credit Cult. The Free Market". Mises Institute. http://mises.org/freemarket_detail.aspx?control=215.  
  43. ^ "16 decisions" (PDF). Grameen Bank. http://www.grameen-info.org/index2.php?option=com_content&do_pdf=1&id=22. Retrieved 2009-04-14.  
  44. ^ "David Roodman : Center for Global Development : CGD Experts". Cgdev.org. 2009-10-22. http://cgdev.org/content/expert/detail/2719/. Retrieved 2009-12-20.  
  45. ^ "Jonathan Morduch's Home Page". Nyu.edu. http://www.nyu.edu/projects/morduch/. Retrieved 2009-12-20.  
  46. ^ "New Challenge to Studies Saying Microcredit Cuts Poverty | David Roodman's Microfinance Open Book Blog". Blogs.cgdev.org. http://blogs.cgdev.org/open_book/2009/06/roodman-morduch-2009.php. Retrieved 2009-12-20.  

Further reading

  • Bornstein, David. The Price of a Dream: The Story of the Grameen Bank. Oxford University Press, NY: 2005, ISBN 0-19-518749-0
  • Cockburn, Alexander, "A Nobel Peace Prize for Neoliberalism?"
  • Counts, Alex, Give Us Credit , Crown, 1996, ISBN 0-8129-2464-9
  • "Micro Loans for the Very Poor", New York Times, February 16, 1997
  • Sachs, Jeffrey. "The End of Poverty". Penguin Books, NY: 2005, ISBN 0-14-303658-0
  • Yunus, Muhammad (with Alan Jolis), Banker to the Poor: The Autobiography of Muhammad Yunus, Founder of Grameen Bank, Oxford University Press: USA, ISBN 0-19-579537-7

External links

Awards and achievements
Preceded by
Mohamed ElBaradei
and
International Atomic
Energy Agency
Nobel Peace Prize Laureate
with Muhammad Yunus

2006
Succeeded by
Al Gore
and
Intergovernmental Panel
on Climate Change

Simple English

 

 

 

 

 

 

 

 

 

 

 
Grameen Bank (GB)

Type Body Corporate (Bank Ordinance)
Founded 1983
Headquarters Dhaka, Bangladesh
Area served Bangladesh
Key people Muhammad Yunus, founder
Industry Finance
Products Financial Services
Microfinance
Revenue 6,335,566,324 Taka (2006)[1]
Operating income 5,959,675,013 Taka (2006)[1]
Net income 1,398,155,030 Taka (2006)[1]
Total assets 59,383,621,728 Taka (2006)[2]
Employees 24,703 (Oct 2007)[3]
Website http://www.grameen-info.org/

The Grameen Bank is a community development bank started in Bangladesh. They give small loans (known as microcredit or "grameencredit" [1]) to poor people without asking for money before the loan is given. The word "Grameen", is made of the word "gram" or "village", and means "of the village". The system of this bank is based on the idea that the poor have skills but have no chance to use their skills without some money. The bank also controls some businesses, such as fabric, telephone and energy companies. Most of the banks loans go to women.

The Grameen Bank was started 1976 when Professor Muhammad Yunus, a Fulbright scholar and Professor at University of Chittagong, researched how to provide banking for the rural poor. In October 1983, the Grameen Bank Project was made into an independent bank by the government. The group and its first member, Muhammad Yunus, were awarded the Nobel Peace Prize in 2006.[4]

Some people have said the banks prices are too expensive and put people in a debt-trap. Some have also said that the bank would not work if people did not give donations. At the same time, it is often seen as a success story in microfinance and as the guide for other groups around the world.

Contents

History

File:Grameen Yunus Dec
Nobel Prize winner, Muhammad Yunus, the banks first member

Muhammad Yunus, the banks first member, earned a Ph.D. in economics from Vanderbilt University in the United States. During the Bangladesh famine of 1974 he gave a small loan of USD 27 to a group of 42 families so that they could make small items and sell them without owing too much money.[5] Yunus believed that a lot less people would be poor around Bangladesh if they could find small loans. The Grameen Bank ("Bank of the Villages", in the Bengali language) is the product of Yunus' ideas. The bank began as a research project by Yunus and the Rural Economics Project at Bangladesh's University of Chittagong. They gave out some small loans and waited to know what would happen. In 1976, the village of Jobra and other villages surrounding the University of Chittagong became the first places where Grameen Bank loaned money to people.[6] The Bank was very successful and with support from the main Bangladesh Bank, gave loans for the Tangail District (to the north of the capital, Dhaka).[6] The bank's success continued and it soon gave loans in many areas of Bangladesh. On October 2, 1983, the project was made into an independent bank, by the Bangladeshi government.[6] Bankers from ShoreBank, a community development bank in Chicago, helped Yunus by making Grameen Bank a part of Shorebank with money from the Ford Foundation.[7] After the 1998 flood of Bangladesh, many people could not pay their debts to Grameen for a few years. By the beginning of 2005, the bank had loaned over USD 4.7 billion to poor people.[8]

Grameen Bank now loans money to poor people all over India. By 2006, India had over 2,100 Grameen Bank branches.[9] Its success has inspired similar projects in more than 40 countries around the world and has made World Bank to take an initiative to finance Grameen-type schemes.[10]

The bank gets help with money. In the mid-1990s, the bank started getting most of its funding from the central bank of Bangladesh. More recently, Grameen has been borrowing money. The Government of Bangladesh guaruntees that money borrowed by the Grameen Bank will be repaid.[11]

How the bank works

16 Decisions[12]
  1. We shall follow and advance the four principles of Grameen Bank: Discipline, Unity, Courage and Hard work – in all walks of our lives.
  2. Prosperity we shall bring to our families.
  3. We shall not live in dilapidated houses. We shall repair our houses and work towards constructing new houses at the earliest.
  4. We shall grow vegetables all the year round. We shall eat plenty of them and sell the surplus.
  5. During the plantation seasons, we shall plant as many seedlings as possible.
  6. We shall plan to keep our families small. We shall minimize our expenditures. We shall look after our health.
  7. We shall educate our children and ensure that they can earn to pay for their education.
  8. We shall always keep our children and the environment clean.
  9. We shall build and use pit-latrines.
  10. We shall drink water from tubewells. If it is not available, we shall boil water or use alum.
  11. We shall not take any dowry at our sons' weddings, neither shall we give any dowry at our daughter's wedding. We shall keep our centre free from the curse of dowry. We shall not practice child marriage.
  12. We shall not inflict any injustice on anyone, neither shall we allow anyone to do so.
  13. We shall collectively undertake bigger investments for higher incomes.
  14. We shall always be ready to help each other. If anyone is in difficulty, we shall all help him or her.
  15. If we come to know of any breach of discipline in any centre, we shall all go there and help restore discipline.
  16. We shall take part in all social activities collectively.

Grameen Bank is best known for solidarity lending.[13] The Bank also incorporates a set of values embodied in Bangladesh by the Sixteen Decisions.[14] At every branch of Grameen Bank the borrowers recite these Decisions and vow to follow them.[15]

There is solidarity lending in over 43 countries. Each borrower must belong to a five-member group, the group does not need to give a guarantee for a loan. The loan is made to only one person but the whole group is to make sure that the money is repaid. Each member has to pay for their own loan but if they have problems the group may help them pay because the group would not get any more loans from Grameen if all the groups loans were not paid.[16]

Grameen Bank does not take people to court if they cannot pay, the system works on trust only.[17] Solidarity groups agree with Grameen to save enough for extra payments in case they cannot pay every time.[18]

Not many women in India can have loans from big banks so 97% of Grameens loans go to women.[3] Women get treated very badly in some countries and groups, such as the World Bank are researching to know if small loans are helping women around the world.[19] Over 98 percent of Grameens loans have been paid back but the Wall Street Journal says that 20% of the loans took more than a year longer than the time agreed to pay the loan back.[20] Grameen says that more than half of its borrowers in Bangladesh (close to 50 million) now: have all children of school age in school, all household members eating three meals a day, a clean toilet, a rainproof house, clean drinking water and can pay 300 taka-a-week (around 4 USD) towards their loans.[21]

Village Phone Program

One of the things Grameen Bank does for poor people is the Village Phone program. Women entrepreneurs can start a business providing a payphone service in rural areas of Bangladesh. The Village Phone Program was awarded the 2004 Petersburg Prize of EUR 100,000 for Technology to Development.[22] The Development Gateway Foundation said:

...Grameen has created a new class of women entrepreneurs who have raised themselves from poverty. Moreover, it has improved the livelihoods of farmers and others who are provided access to critical market information and lifeline communications previously unattainable in some 28,000 villages of Bangladesh. More than 55,000 phones are currently in operation, with more than 80 million people benefiting from access to market information, news from relatives, and more.[22]

Struggling members program

In 2003, Grameen Bank started a new loan program, different from the Solidarity Group, to help the beggars in Bangladesh.[23] This program is made to give small loans to beggars. The loans cost only the amount of the loan and the repayment take a long time, for example, a beggar taking a small loan of around 100 taka (about US $1.50) can pay only 2.00 taka (about 3.4 US cents) per week and only repays 100 taka.

The bank does not force the beggers to give up begging but tries to get them selling low-priced items. The Global Microcredit Summit in 2006 by one of the banks managers says that by May 2006, around 73,000 beggars have taken loans of about 58.32 million taka (approx. USD 833,150) and repaid 34.78 million taka (about USD 496,900).[24]

Statistics

Grameen Bank is owned by the people who borrow the money, mostly women. The borrowers own 94% of the bank, and the other 6% is owned by the Government of Bangladesh.[3]

In October 2007, the bank had 7.34 million borrowers, and 97% of those are women.[3] The number of borrowers has more than doubled since 2003, when the bank had only 3.12 million members.[25] In October 2007, the Bank had a staff of over 24,703 employees and 2,468 branches covering 80,257 villages.[3] There were 43,681 villages covered in the year 2003.[25] Since its start, the bank has loaned 347.75 billion taka (USD 6.55 billion). 313.11 billion taka (USD 5.87 billion) has been repaid.[3] The bank says 98.35% of loans are repaid. In 1998 95% of loans were repaid.[26] However, many critics doubt this recovery rate and the definition that Grameen uses to come up with this rate.[27]

Nobel Peace Prize

Grameen Bank received awards such as, the Bangladesh Independence Day Award, in 1994. The bank got its best known award on 13 October 2006, when the Nobel Committee awarded Grameen Bank and its first member, Muhammad Yunus, the 2006 Nobel Peace Prize "for their efforts to create economic and social development from below."[28] The Nobel Foundation says:
From modest beginnings three decades ago, Yunus has, first and foremost through Grameen Bank, developed micro-credit into an ever more important instrument in the struggle against poverty. Grameen Bank has been a source of ideas and models for the many institutions in the field of micro-credit that have sprung up around the world. [28]

Mosammat Taslima Begum, used her first loan of 16-euro (20-dollar) from the bank in 1992 to buy a goat and subsequently became a successful entrepreneur and one of the elected board members of the bank. She collected the Nobel Prize for Grameen Bank on December 10, 2006, at the prize awarding ceremony in Oslo City Hall.[29]

Grameen Bank is the only business to have won a Nobel Prize. In a speech given at the presentation ceremony, Professor Ole Danbolt Mjøs, Chairman of the Norwegian Nobel Committee, said that, by giving the prize to Grameen Bank and Muhammad Yunus, the Norwegian Nobel Committee wanted to make more contact with the Muslim world, to help women, and on to fight against poverty.[30]

The people in Bangladesh were very happy with the Nobel Prize.[31] Some critics asserted that the award affirms neoliberalism.[19]

Related groups

The Grameen Bank has grown into over two dozen groups called the Grameen Family of Enterprises. These groups include Grameen Trust, Grameen Fund, Grameen Communications, Grameen Shakti (Grameen Energy), Grameen Telecom, Grameen Shikkha (Grameen Education), Grameen Motsho (Grameen Fisheries), Grameen Baybosa Bikash (Grameen Business Development), Grameen Phone, Grameen Software Limited, Grameen CyberNet Limited, Grameen Knitwear Limited, and Grameen Uddog (owner of the brand Grameen Check).[32]

On July 11, 2005 the Grameen Mutual Fund One (GMFO), was listed as an Initial Public Offering. One of the first mutual funds of its kind, GMFO will allow the over four million Grameen bank members, as well as non-members, to buy into Bangladeshs capital markets. The Grameen group is worth over USD 7.4 billion.[33]

The Grameen Foundation was based on the work of Grameen Bank in Bangladesh and they want to share the Grameen ideas and hurry microfinance to the worlds poorest people.[34] Grameen Foundation USA, which has an A- rating from Charity Watch,[35] supports microfinance institutions worldwide with loan guarantees, training, and technology transfer.[36] As of 2006, Grameen Foundation supports microfinance institutions in the following regions:[34]

Some people do not agree with Grameen

Sudhirendar Sharma, a development analyst, says that the Grameen Bank has "landed poor communities in a perpetual debt-trap",[37] and that its ultimate benefit goes to the corporations that sell capital goods and infrastructure to the borrowers.[38] Prime Minister of Bangladesh, Sheikh Hasina, who said, "There is no difference between usurers [Yunus] and corrupt people."[39] Hasina also says the bank wants too much in return for the loans.[40] Loans from Grameen Bank cost more than bigger banks, around 20% interest.[41] The Mises Institute's Jeffrey Tucker says that Grameen Bank is not good enough for Indias economy and is a way of giving money to people who are not working.[42][43]

Other pages

  • Grameen Foundation, replicating the Grameen Bank model around the world
  • Vikram Akula, microfinance institution modelled on Grameen Bank
  • Opportunity International
  • Islamic banking

Notes

References

  1. 1.0 1.1 1.2 Ahmed & Ahmed (Chartered Accountants) (2007-08-01). "GRAMEEN BANK Profit and Loss Account, for the year ended 31 December 2006" (in English) (pdf). Auditors’ Report and Financial Statements OF Grameen Bank. Grameen Communications. http://www.grameen-info.org/bank/auditreport/AuditReport2006/placcounts.pdf. Retrieved 2008-01-17. 
  2. Ahmed & Ahmed (Chartered Accountants) (2007-08-01). "GRAMEEN BANK Balance Sheet, As at 31 December 2006" (in English) (pdf). Auditors’ Report and Financial Statements OF Grameen Bank. Grameen Communications. http://www.grameen-info.org/bank/auditreport/AuditReport2006/blancesheet.pdf. Retrieved 2008-01-17. 
  3. 3.0 3.1 3.2 3.3 3.4 3.5 "Grameen Bank At a Glance" (in English). Grameen Communications. October 2007. http://www.grameen-info.org/bank/GBGlance.htm. Retrieved 2008-01-17. 
  4. "The Nobel Prize for 2006". The Nobel Peace Prize for 2006. 2006-10-13. http://nobelprize.org/nobel_prizes/peace/laureates/2006/press.html. Retrieved 2006-10-13. 
  5. Anand Giridharas and Keith Bradsher (2006-10-13). "Microloan Pioneer and His Bank Win Nobel Peace Prize". New York Times. http://www.nytimes.com/2006/10/13/business/14nobelcnd.html. Retrieved 2006-10-13. 
  6. 6.0 6.1 6.2 Rahman, Aminur (2001). Women and Microcredit in Rural Bangladesh: Anthropological Study of Grameen Bank Lending. Boulder, Colorado: Westview Press. pp. p 4. ISBN 0-8133-3930-8. 
  7. Brandon Glenn (2006-10-16). "ShoreBank leaders had hand in Nobel prize". Chicago Business News. http://www.chicagobusiness.com/cgi-bin/news.pl?id=22455&rel=1. Retrieved 2007-05-15. 
  8. Papa, Michael J.; Arvind Singhal and Wendy H. Papa (2006). Organizing for Social Change: A Dialectic Journey of Theory and Praxis. Sage Publications. pp. p72. ISBN 0761934359. 
  9. "Bangladeshi banker wins Nobel Peace Prize". United Press International. 2006-10-13. 
  10. Khandker, Shahidur R.; Baqui, M. A. & Khan Z. H.. Grameen Bank: Performance and Sustainability. World Bank Publications. p. p vi. ISBN 0821334638. http://books.google.com.sg/books?hl=en&lr=&id=rNN3Dfxcc3oC&oi=fnd&pg=PR5&dq=grameen+bank&ots=NWEF1ebHUI&sig=5qYr4t_ewY4jmKa1RmC9oDSYFq0. Retrieved 2008-01-16. 
  11. *Morduch, Jonathan (October 1999). "The role of subsidies in microfinance: evidence from the Grameen Bank". Journal of Development Economics (Elsevier) 60 (1): p 240. http://www.nyu.edu/projects/morduch/documents/microfinance/Role_of_Subsidies.pdf. Retrieved 2008-01-16. 
  12. Sherraden, Margaret S. (1998). Community Economic Development and Social Work. Binghampton, New York: Haworth Press. pp. p 113-114. ISBN 0-7890-0506-9. 
  13. Khandker, Shahidur R.; Baqui, M. A. & Khan Z. H.. Grameen Bank: Performance and Sustainability. World Bank Publications. p. p xi. ISBN 0821334638. http://books.google.com.sg/books?hl=en&lr=&id=rNN3Dfxcc3oC&oi=fnd&pg=PR5&dq=grameen+bank&ots=NWEF1ebHUI&sig=5qYr4t_ewY4jmKa1RmC9oDSYFq0. Retrieved 2008-01-16. 
  14. Siddiqui, Kamal, An Evaluation of the Grameen Bank Operation (Dhaka: National Institute of Local Government, 1984)
  15. Ghista, Garda (2004). "Bangladesh:Towards Economic and Women’s Liberation Via Grameen Bank" (in English). ProutWorld. http://www.proutworld.org/features/bangldesh.htm. Retrieved 2008-02-04. 
  16. Hossain, Mahabub. Credit for Alleviation of Rural Poverty: The Grameen Bank in Bangladesh. Int Food Policy Res Inst IFPRI. p. P 7. ISBN 0896290670. http://books.google.com.sg/books?hl=en&lr=&id=GkrRrt_ao50C&oi=fnd&pg=PA7&dq=grameen+bank&ots=YpRKHvi-x_&sig=zHG-ScV4T9DQnQwuy77WsyGTOHA#PPA29,M1. Retrieved 2008-01-16. 
  17. Sinclair, Paul (2007-12-22). "Grameen Micro-Credit & How to End Poverty from the Roots Up" (in English). One World One People. http://www.oneworldonepeople.org/articles/World%20Poverty/Grameen.htm. Retrieved 2008-02-04. 
  18. Khandker, Shahidur R.; Baqui, M. A. & Khan Z. H.. Grameen Bank: Performance and Sustainability. World Bank Publications. p. P. x. ISBN 0821334638. http://books.google.com.sg/books?hl=en&lr=&id=rNN3Dfxcc3oC&oi=fnd&pg=PR5&dq=grameen+bank&ots=NWEF1ebHUI&sig=5qYr4t_ewY4jmKa1RmC9oDSYFq0. Retrieved 2008-01-16. 
  19. 19.0 19.1 Feiner, Susan F.; Barker, Drucilla K. (Nov-Dec 2006), "Microcredit and Women's Poverty", [Expression error: Unexpected < operator Dollar & Sense, The magazine of Economic Justice], Boston, USA: Economic Affairs Bureau, Inc., http://www.dollarsandsense.org/archives/2006/1106feinerbarker.html 
  20. Daniel Perl, Michael M. Phillips (2001-11-27). "Grameen Bank, Which Pioneered Loans For the Poor, Has Hit a Repayment Snag". Wall Street Journal. http://online.wsj.com/public/resources/documents/pearl112701.htm. Retrieved 2008-03-25. 
  21. Fraser, Ian (2007-08-03). "Microfinance comes of age" (in English). Cover Story. Scottish Banker magazine. http://www.social-capital.net/articles/view.php?viewid=151. Retrieved 2008-01-30. 
  22. 22.0 22.1 "Grameen Bank-Village Phone Wins Global Competition for Contribution of Technology to Development" (in English) (pdf). Development Gateway Foundation (Washington, DC). 2004-07-27. http://www.developmentgateway.org/download/249636/Petersberg_winner.pdf. Retrieved 2008-01-31. 
  23. Yunus, Muhammad (July 2005). "Grameen Bank's Struggling (Beggar) Members Programme" (in English). Grameen Communications. http://www.grameen-info.org/bank/BeggerProgram.html. Retrieved 2008-01-31. 
  24. Barua, D. C. (2006-11-12). "Five Cents a Day: Innovative Programs for Reaching the Destitute with Microcredit, No-interest Loans, and other Instruments: The Experience of Grameen Bank". Global Microcredit Summit; Nova Scotia, Canada. Retrieved on 2008-01-20. 
  25. 25.0 25.1 "Grameen Bank Historical Data Series 2003" (in English). Grameen Communications. 2004-07-21. http://www.grameen-info.org/bank/hist2003.html. Retrieved 2008-01-17. 
  26. "Credit delivery system" (in English). Grameen Communications. 2002-09-18. http://www.grameen-info.org/bank/cds.html. Retrieved 2008-01-17. 
  27. Pearl, Daniel; Phillips, Michael M. (2001-11-27). "Grameen Bank, Which Pioneered Loans For the Poor, Has Hit a Repayment Snag" (in English). The Wall Street Journal. http://online.wsj.com/public/resources/documents/pearl112701.htm. Retrieved 2008-02-04. 
  28. 28.0 28.1 "The Nobel Peace Prize for 2006". The Nobel Peace Prize for 2006. 2006-10-13. http://nobelprize.org/nobel_prizes/peace/laureates/2006/press.html. Retrieved 2006-10-13. 
  29. "Yunus unveils vision to end global poverty" (in English). The Daily Star. 2006-12-11. Vol 5 Num 903. http://www.thedailystar.net/2006/12/11/d6121101011.htm. Retrieved 2008-01-31. 
  30. Mjøs, Ole Danbolt (2006-10-13). "The Nobel Peace Prize for 2006: Presentation Speech". The Nobel Peace Prize for 2006. http://nobelprize.org/nobel_prizes/peace/laureates/2006/presentation-speech.html. Retrieved 2008-02-04. 
  31. "Nation parties on Nobel win" (in English). The Daily Star. 2006-10-15. Vol 5 Num 850. http://www.thedailystar.net/2006/10/15/d6101501011.htm. Retrieved 2008-02-04. 
  32. "Grameen Family of Enterprises". Grameen Website. Grameen Communications. 2007-11-28. http://www.grameen-info.org/gfamily.html. Retrieved 2008-01-17. 
  33. "Credit where credit is due: The banker who changed the world". The Independent. 2006-10-14. http://news.independent.co.uk/world/asia/article1870835.ece. Retrieved 2008-01-17. 
  34. 34.0 34.1 "Grameen Foundation Annual Report 2006" (in English) (pdf). Grameen Foundation, Washington, DC, USA. 2007-08-01. http://www.grameenfoundation.org/docs/resource_center/GrameenFoundation-AnnualReport2006.pdf. Retrieved 2008-01-31. 
  35. "Top Rated Carities" (in English). American Institute of Philanthropy. 2008-01-15. http://www.charitywatch.org/toprated.html. Retrieved 2008-01-17. 
  36. "Grameen Foundation USA" (in English). 25 entrepreneurs who are changing the world. Fast Company Monitor Grouop. http://www.fastcompany.com/social/2006/statements/grameen.html. Retrieved 2008-01-29. 
  37. Sharma, Sudhirendar (2002-09-25). "Is micro-credit a macro trap?". The Hindu. http://www.hinduonnet.com/businessline/2002/09/25/stories/2002092500810900.htm. Retrieved 2006-12-02. 
  38. Sharma, Sudhirendar (2002-01-05). "Microcredit: Globalisation unlimited". The Hindu. http://www.thehindubusinessline.com/2002/01/05/stories/2002010500111200.htm. Retrieved 2006-12-02. 
  39. "A new party for Bangladesh's fray" (in English). Economist. 2007-02-22. http://www.economist.com/world/asia/displaystory.cfm?story_id=E1_RSQNJQJ. Retrieved 2008-01-31. 
  40. IANS (2007-02-18). "Sheikh Hasina sneers at Nobel winner Yunus's bid to enter politics" (in English). Webindia123.com. http://news.webindia123.com/news/ar_showdetails.asp?id=702180187&cat=&n_date=20070218. Retrieved 2008-02-02. 
  41. Fernando, Nimal A. (May 2006). Understanding and Dealing with High Interest Rates on Microcredit - A Note to Policy Makers in the Asia and Pacific Region. Manila, Philippines: ADB. pp. p 8. http://www.adb.org/Documents/Books/interest-rates-microcredit/Microcredit-Understanding-Dealing.pdf. 
  42. Tucker, Jeffrey (November 1995). "The Micro-Credit Cult. The Free Market". Mises Institute. http://www.mises.org/freemarket_detail.asp?control=215. 
  43. Tucker, Jeffrey (2006-11-08). "Microcredit or Macrowelfare: The Myth of Grameen". Mises Institute. http://www.mises.org/story/2375. 

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