Grameen bank presentation

Prepared by: HADJOUDJ Salim

TURKMEN Selim

REQUENA David

PIERA Romain

History Bank Founder: Muhammad Yunus Inspired by the Bangladesh famine of 1974 1976: Test in the village of Jobra and other villages

surrounding the University of Chittagong 1976-1979:Tangail test The project was transformed into an independent bank, on

October 02, 1983

History In the initial years, agencies used to provide a lots of loans at

very cheap rates 90’s : bank started to get most of its funding from the central

bank of Bangladesh Grameen has started bond sales as a source of finance Today the bank is owned by borrowers 90% and the

government 10%

Organizational chart

Muhammad Yunus

Born 1940 in Bangladesh 1971, Ph.D in economics from Vanderbilt University 1976, inspired by Jobra village’s women 1983, Establishing Grameen Bank 2006 Nobel Prize 2011 Fired from Gameen Bank

Awards :Nobel Peace Prize

October 13, 2006 ~ 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.“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.”

Only business corporation to have won a Nobel Prize

Awards• Muhammad Yunus has won a number of other

awards– 1978 President’s award– 1994 World Food Prize– 1998 Indira Gandhi Prize– 2006 Mother Theresa Prize– 2009 Presidential Medal of Honnor,

awarded by Barack Obama– 2010 Congressional Gold Medal,

awarded by the U.S Congress

• Yunus received 48 honorary doctorate degrees from universities from Argentina, Australia, Belgium, Canada, Japan, USA;Spain…

Micro-Credit Strategy Objective: To promote financial independence

among the poor Encourages all borrowers to eventually become

savers Known for “Solidarity Lending” (over 43 countries)

– each borrower must belong to a five-member group – not required to give any guarantee for a loan to its member – repayment responsibility only rests on the individual borrower – no form of joint liability

Incorporates a set of values embodied in Bangladesh by the Sixteen Decisions

The sixteen decisions to live in dignity

Respect the four principles of the GB Provide good living standards for families Repair dilapidated houses and work to build new

ones. Cultivate vegetables the whole year round and sell

the surplus Pick out seedlings during the season for planting Raise small families, reduce expenses to a minimum

and take care of health.

The sixteen Decisions

• Educate children and ensure their earning capability

• Ensure cleanliness of children and homes• Build latrines and use them.• Drink water drawn from wells only. If not,

boil the water or use alum.• Refuse mariage dowry for sons and not give

one to daughters at their marriage.

The sixteen Decisions

• Cause harm to no one and not tolerate anyone who does.

• Make important investments in common to increase our income.

• Always be ready to help each other.• Help and restore order if we lear that

discipline is not respected in a centre.• Introduce physical culture in all centres and

to take part in all social events

Related ventures

The Grameen family of organizations has grown beyond Grameen Bank into a multi-faceted group of profitable and non-profit ventures.

Grameen Family of Enterprises:o 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

Grameen Telecom

In Bangladesh 97% of houses lack of telephone, making the nation one of the least wired in the world.

Objectives: To provide easy access to telephone services, all

over rural Bangladesh Telephone as a new weapon against poverty.

Grameen Shakti

The goal is to promote and supply renewable energy technology at an affordable rate to rural households of Bangladesh.

Renewable energy applications for poor rural people is becomes a reality.

Grameen Danone foods

A joint venture launched by Danone and Grameen in March 2006, Grameen Danone Foods is a usual business but benefits are reversed to the poors.

The mission of Grameen Danone Foods speaks for itself: to reduce poverty by bringing health through food to children using a unique community-based business model.

Grameen Foundation

Grameen Group is also present at the International .

Grameen Foundation provides microfinance institutions (MFIs) in poor communities, like in Bangladesh.

As of August 2007, it has provided support to 138 replication partners in 37 countries of the world.

They are for example in Egypt ,Cameroon, Bolivia, Mexico ,India ,United States…

Breaking the vicious cycle of poverty through microcredit

Intensive discipline, supervision, and servicing characterize the operations of the Grameen Bank, which are carried out by "Bicycle bankers" in branch units with considerable delegated authority.

The rigorous selection of borrowers and their projects by these bank workers, and pressure to succeed for borrowers are the keys to success.

Micro-Credit Programs

Struggling Members Program 2003, started a new program exclusively targeted

the beggars of Bangladesh distributing small loans to beggars existing rules of banking are not applied, the loans

are completely interest-free, the repayment period can be arbitrarily long

e.g. 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. The borrower has a life insurance free of cost.

Operational Statistics Borrowers own 94%, and the remaining 6% is owned by the

Government of Bangladesh Huge growth between 2003-2007

o October 2007, the total number of borrowers of the bank approaches 8 million, and 98% of those are women

o 2003, the bank had only 3.12 million members The bank has distributed Tk 347.75 billion (USD 6.55 billion)

in loans Tk 313.11 billion (USD 5.87 billion) has been repaid Loan recovery rate is 96.5% in 2009, which is lower than in

2003 (99% )

Contreversies

MethodsBring communinties into debt they cannot escape

The Danone Caseaccusation of “aldultered” yogurt.

Anti-islamicAccused, to force women to disobey their husband

“Caught in micro-debt”A norvegian documentary accusing yunus of diverting money and changing its borrowers annual interest rate

Thank for listening