Central Bank of Bangladesh removed Muhammad Yunus as Grameen Bank’s MD

The central bank of Bangladesh, the Bangladesh Bank, on 28 February 2011 removed Nobel Laureate Dr. Muhammad Yunus as the Managing Director of Grameen Bank. The microcredit pioneer had won the Nobel Peace Prize in 2006 along with the Grameen Bank, which he has founded.

The central bank had earlier sent a letter to the Grameen Bank Board informing that it was not consulted when Dr. Yunus was appointed MD in 2000 for an indefinite period. The central bank is of the opinion that Dr. Yunus who is currently 70 years old had passed the retirement age of 60 years and must step down. The Bank Company Act of Bangladesh states that the central bank is empowered to take legal action against a Director or Managing Director of any commercial and specialised bank for working against the interests of the depositors.

Grameen Bank refuted by mentioning that its MD does not have a retirement age as it is governed by a different set of rules under the Grameen Bank Ordnance of 1983. According to Grameen Bank the retirement age of its chief is decided by its governing body.