Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and created a banking system based on accountability , mutual trust, creativity and participation . Grameen Bank provides credit to the poorest in Bangladesh, without any collateral. At Grameen Bank , credit is a cost effective weapon to fight poverty and it serves as a catalyst in the over all development of socio-economic conditions of the poor who have been kept outside the banking orbit on the ground that they are poor and hence not bankable .The founder of “Grameen Bank” – Muhammad Yunus, and its Managing Director, reasoned that if financial resources can be made available to the poor people on terms and conditions that are reasonable and appropriate ,”these millions of small people with their millions of small pursuits can add up to create the biggest development wonder.”
As of October , 2011, it has 8.349 million borrowers, 97% of whom are women. With 2,565 branches, Grameen Bank provides services in 81,379 villages, covering more than 97% of the total villages in Bangladesh.
GB’s positive impact on its poor and formerly poor borrowers has been documented in many independent studies carried out by external agencies including the World Bank, the International Food Research Policy Institute (IFPRI) and the Bangladesh Institute of Development Studies (BIDS).
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