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Grameen Bank

   Also found in: Wikipedia, Hutchinson 0.02 sec.
Grameen Bank: see Yunus, Muhammad Yunus, Muhammad, 1940–, Bangladeshi economist and banker, b. Chittagong (then in British India), grad. Vanderbilt Univ., Nashville, Tenn. (Ph.D. 1971).
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Grameen Bank

Bank in Bangladesh, the first bank to specialize in small loans for poor individuals. Originated by economist Muhammad Yunus, the Grameen banking model is based on groups of five prospective borrowers who meet regularly with Grameen Bank field managers. Typically, two of the five prospective borrowers are granted loans. If, after a probationary time period, the first two borrowers meet the terms of repayment, then loans are granted to the remaining group members. Peer pressure acts as a replacement for traditional loan collateral. Grameen became an independent bank in 1983; headquartered in Dhaka, Bangladesh, it has more than 2,200 branches in the country. An average Grameen loan is about $300. The Grameen model has come to symbolize an efficient means of helping the poor by providing them with opportunities to help themselves. Nearly all of Grameen's loan recipients have been women. In 2006 Grameen Bank and Yunus were awarded the Nobel Prize for Peace.



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Yunus set up Grameen Bank in 1976 with an initial capital of $27 to provide small loans to the poorest of the poor in Bangladesh, most of them women, that enabled them to become small entrepreneurs.
Muhammad Yunus and the Grameen Bank have been awarded the Nobel Prize for peace (equal to more than CAD $1.
programs was stimulated by success stories from pioneering MDPs such as the Grameen Bank in Bangladesh, ACCION in Latin America, and the FINCA Village Banking Model, and several microenterprise demonstration projects in the United States (Jurik, 2005).
 
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