Garmeen Bank Case Study

Introduction: Founder and the history of the Garmeen Bank

Muhammad Yunos was born on 28 June 1940 in Bangladesh at the village of Bathua. He was the founder of the Grameen Bank the first leading organization that provides microcredit and microfinance schemes to alleviate poverty. The ideas of microcredit and microfinance started when he visited a village in Jobra on year 1976. This village were located near Chittagong University where he works as the head department of Economics.

He found out that the women living in the area are facing difficulties and had little income. He saw that the town ladies who made bamboo furniture needed to take up loan and use the loans to purchase and sell bamboo for a living. Muhammad Yunos also studied that the

He believed that the women have greater chances of succeeding and from his observation he sees the women are more responsible in spending their money wisely as compared to men in the community who waste their cash on snacks or extravagances. (Esty, 2014) Furthermore, he observed that the women in the community are more responsible and very capable to alleviate poverty cycles such as the women used their earnings to sustenance their family by spending on food to feed their kids and sending their children to school. Hence, he believed that the women bring more noteworthy contribution to reduce the deprivation of economic condition and are motivated to enhance the living

Sarker (2001) describes the bank as purely a bank that provides banking services to the poor. Grameen intervention provides women to be an independent worker. According to, Hossain's in his research study (1998) he point out that with access to Grameen bank resulted more people getting employment as well as increase the productivity of the economy. (As cited from Sarker, 2001)

Easing financing for women such as providing salary of borrowers therefore bring greater empowerment for women to have access on credit facilities. Accessibility to financing creates more encouragement and boosts the living condition of the women in the village. In addition, the Grameen bank offers great potential for the women to fully-utilize the scheme to be self-independent hence, significantly help the community to add long term economic growth. Therefore, the Grameen bank promotes empowerment in improving the socioeconomic status of the women in Bangladeshas well as it creates better sustainability and positive social change within the