Académique Documents
Professionnel Documents
Culture Documents
Conclusion
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Introduction
Muhammad Yunus was born in 1940 in Chittagong, Bangladesh. He was the 3rd of 14 children 5 of who died in their infancy. He was educated at Dhaka University and was awarded a Fulbright scholarship to study economics at Vanderbilt University. In 1972 he became the head of the economics department at Chittagong University.
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Introduction
In 1983, Muhammad Yunus established Grameen, a bank devoted to providing the poorest of Bangladesh with minuscule loans. The Grameen Bank Project was an idea that was born in a village called Jobra (near Chittagong) in Bangladesh in 1976 when he loaned $27 from his own pocket to fortytwo people living in a tiny village. With the sponsorship of the central bank of the country and support of the nationalized commercial
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Introduction
Twenty-three years later in 2006 Grameen Bank and Mohammed Yunus both won the Nobel Prize for Peace for their work in eradicating poverty. Grameen Bank is owned by the rural poor whom it serves. Borrowers of the Bank own 90% of its shares, while the remaining 10% is owned by the government. Today, more than 250 institutions in nearly 100 countries operate micro-
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c.
d.
e.
143,000 branches with 22,124 staff. Serves 8.3 million borrowers in more than 81,000 villages. On any working day Grameen collects an average of $3.5 million in weekly installments. Of the borrowers, 96% are women and over 97% of the loans are paid back, a recovery rate higher than any other banking system. Grameen methods are applied in projects in 58 countries, including the US, Canada, France, The Netherlands and Norway.
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Grameen Bank-Brief Snapshot 100% of loans financed from banks deposits. Grameen Bank has been earning profits in every year other than in 3 years 83, 91 and 92. Profits in 2010 was $ 10.76 Million. From 1995 onwards the Grameen Bank has stopped accepting donor funds and is completely self reliant now. Paid out a dividend of 30% in 2010. Relatively low interest rates 16% p.a. Offers attractive deposit rates ranging between 8.5 to 12%.
f.
g.
h.
i. j. k.
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Grameen Bank-Brief Snapshot : Feb, 2012 Particulars Amount in Million (USD) 11,853.22 10,558.27 116.11 102.86 930.96 96.54 1,385.76 8,383,849
Cumulative Amount Disbursed Since Inception Cumulative Amount Repaid Since Inception Amount Disbursed in Feb-12 Amount Repaid this Month Outstanding Loan Rate of Recovery Balance of Deposits Number of Members [8,063,945 Females, 319,904 Males
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Grameen Group Organizations The Grameen Group has 25 Organizations some of which are as follows:
a. b. c. d. e. f. g. h. i. j.
Grameen Grameen Grameen Grameen Grameen Grameen Grameen Grameen Grameen Grameen
Communications. Trust. Fund. Telecom. Cybernet Ltd. Shakti/ Energy. Shiksha/ Education. Knitwear Ltd. Solutions. Byabosa Bikash
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It is designed to spur entrepreneurship, increase incomes, alleviate poverty and often also to empower women.
Microcredit is a part of microfinance, which is the provision of a wider range of financial services, in particular savings, to the poor.
As of 2009 it was estimated that there were 74 million recipients of microcredits with a total of $38 billion in outstanding loans.
Modern microcredit is generally considered to have10 10 originated with the Grameen Bank founded in
Case study
Unemployed husband 4 children No savings Good cook Mrs. X decides to start a small catering service at home Mrs. X goes to the bank and makes a demand for a loan at her bank MRS. XS DEMAND IS REJECTED
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Justification and definition of Need for Micro Finance- Why are people excluded from microfinance
certain financial services?
Lack collateral or guarantors A bad credit history Gap in the communication / lack of confidence in the Banks Doubt of the bank of the repayment capacity Lack of access to financial infrastructure and services in remote areas
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Definition
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Clients need to pay for the services Microcredit clients need to repay the loans Interest rate to cover the costs
Ensure correct functioning and growth of the institution Cover office & operational costs Cover for non-payments when they occur
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Micro Enterprises
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Objectives of Grameen Bank The Grameen Bank Project (Grameen means "rural" or "village" in Bangla language) came into operation with the following objectives: 1. Extend banking facilities to poor men and women; 2. Eliminate the exploitation of the poor by money lenders; 3. Create opportunities
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Grameen Bank
Its not people who arent credit-worthy. Its banks that arent people worthy.
Muhammad Yunus
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Grameen Bank
credit
as
a)
Its mission is to help poor families to help themselves to overcome poverty. It is targeted to the poor, particularly poor women. It is offered for creating self-employment for income-generating activities and housing for the poor, as opposed to consumption. It was initiated as a
a)
a)
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Features of Grameen Credit e) It provides service at the door-step of the poor based on the principle that the people should not go to the bank, bank should go to the people. f) No CollateralGrameen Bank does not require any collateral against its micro-loans. g) No Legal InstrumentSince the bank does not wish to take any
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Group Responsibility for Grameen Credit Groups of 5 prospective borrowers are formed. In the first stage, only 2 of them are eligible for, and receive, a loan. The group is observed for a month to see if the members are conforming to the rules of the bank. Only if the first 2 borrowers begin to repay the principal plus
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Grameen Bank vs Conventional Banks To bring economic and social change to the poor. Based on Trust. Looks at what the borrower can have. Located areas. in Rural To make Profit. Based on collateral. Looks at what the borrower already has. Located areas. in Urban
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28 The three large dots represent India, Philippines and 28 Russia with 178,113 and 101 micro finance institutions.
The Asia MF landscape is large and growing Micro Finance organizations in Asia
Population, developing world, 2010
12 10 8 6 4 2 0
Asia has: 62% of the population of the developing world, or 3.5 billion people* 75% of the worlds microfinance borrowers, or 74 million borrowers**
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Worlds largest sector, dominated by Micro Finance organizations across the Globe India and Bangladesh
In Asia:
74 million borrowers have a total 34 billion USD in loans outstanding*
*Figure downloaded from MIX Market Cross Market Analysis, http://mixmarket.org/profiles-reports/crossmarket-analysis-report?rid=YDZeX2AG 11/11/11 **MIX Product Data Extract. 3/2/2012
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Fast growth, especially in South Asia Micro Finance organizations across the Globe
The number of borrowers in Asia doubled in 5 years
EAP and SA show vastly different market sizes and growth trajectories
South Asia is growing faster than any other region in the world, while;
Figure downloaded from MIX Market Cross Market Analysis, http://mixmarket.org/profiles-reports/crossmarket-analysis-report?rid=ghj5yHDZ 11/18/11 Data represent totals.
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