Good Works, Grameen and Microcredit -- Muhammad Yunus: Banker to the Poor
Episode Description
Part 1- People often associate good works with non-profits. Yunus describes his model and why its distinct. Grameen Banks dramatic growth has spurred others to try microfinance. According to Yunus, its the Grameen model that sets it apart and why regulation may be in the microfinance future.
Brief Summary
Dr. Muhammad Yunus discusses the for-profit Grameen Bank model, microcredit's growth, and the need for regulation in the sector.
Key points
- The Birth of Grameen Bank. Founded in 1983, Grameen Bank aimed to lend money to the poor, owned by the borrowers themselves.
- Microcredit's Global Impact. Grameen Bank now operates in over 100 countries, with millions of borrowers.
- Defining Microcredit. Microcredit is specifically for income-generating activities, not consumer goods.
- Interest Rate Controversy. The discussion on keeping interest rates low to avoid exploitation in microcredit.
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Episode highlights
- The Birth of Grameen BankFounded in 1983, Grameen Bank aimed to lend money to the poor, owned by the borrowers themselves.“We became a bank because it is a bank's activity.”1:13May 29, 2009
- Microcredit's Global ImpactGrameen Bank now operates in over 100 countries, with millions of borrowers.“We now have operations in more than 100 countries.”1:52May 29, 2009
- Defining MicrocreditMicrocredit is specifically for income-generating activities, not consumer goods.“We say no sorry, that’s not microcredit.”4:57May 29, 2009
- Interest Rate ControversyThe discussion on keeping interest rates low to avoid exploitation in microcredit.“Interest rate should be kept down as low as possible.”5:59May 29, 2009
Tension
45/ 100Some tension
