Grameen Bank to be brought under Central Bank Jurisdiction in Bangladesh

Sep 23, 2013 16:17 IST

Bangladesh Government on 22 September 2013 decided to bring Nobel Prize winning Grameen Bank under the central bank’s jurisdiction to give the authorities more powers over the microcredit organisation.

The decision is in line with the proposals of the government-sponsored Grameen Bank Commission, which recommended bringing the bank under the regulatory control of either the Bangladesh Bank or the Microcredit Regulatory Authority to better monitor its activities. The three-member commission was constituted in 2012 to review Grameen Bank’s governing structure.

The Grameen bank is being run by Grameen Bank Ordinance 1983 since its inception in 1983 and it does not directly fall under the jurisdiction of the Banking Companies Act.

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.

About Grameen Bank

Grameen Bank is an institution that provides microcredit (small loans to poor people possessing no collateral) to help its clients establish creditworthiness and financial self-sufficiency. In 2006 Dr. Muhammad Yunus and Grameen received the Nobel Prize for Peace.

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