Grameen Bank

Satisfactory Essays
The Grameen Bank started in 1976 by Muhammad Yunus in Bangladesh, created the microcredit system to alleviate the poor and help to increase the living standards for the various families and communities in Bangladesh. This has been a successful project to help communities better their life. Grameen Bank has modified their bank system to work with the borrowers that come from poor backgrounds. Grameen Bank had to modify the bank system and loan repayment system to justify how well the people could return the loan their borrowed. They have managed to have a balancing profit and impact bottom line, but they concentrate mainly on achieving an impact on the communities they are working with. They have proven to have a huge development impact (Schicks, 2007).
This type of bank works to achieve such a successful impact by the structure that it has adopted. Grameen Bank is not the typical bank one would find in their town. This bank system acts as a family to the communities. The borrowers meet together in groups to discuss their progress. The repayment is still individual, but they can rely on each other for guidance in how to repay the loan successful if they are facing difficulty. Loans are known to have been repaid within a year and there were group-owned savings accounts created for more example of savings. This has been successful structure by providing the necessary measures to create a supportive environment where borrowing and repayment was not unachievable. Grameen Bank made it possible for the poor to get involved in banking (borrowing), which was unheard of before. Grameen Bank was as a whole run by these not wealthy communities and for the most part women. Research has proven that higher incomes was prevelant for Grameen mem...

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...” (Abedin, 1996). The microcredit system provided the foundation for the poor to help themselves.
The Grameen Bank has faced criticism for not providing proper tools to educate the borrowers before (Abedin, 1996). It has worked to improve on its microcredit system and continues to alleviate poverty. This bank has helped to impact communities all throughout Bangladesh. Individuals are expanding their choices, growing networks, and utilizing services from the government (Dowla, 2006). It has provided opportunities for the poor in Bangladesh that were unimaginable before. The Grameen Bank still faces challenges with the rapid growth, but it continues to report successful numbers in the repayment of borrowed loans. The next step is to continue to monitor how to properly grow the bank and how to impact more people that are still finding themselves in poor conditions.
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