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Question

Muhammad Yunus, one of the pioneers in microfinance, founded Grameen Bank in which year?

The correct answer is

1983

Grameen Bank was officially founded in:

  • 1983   

Here's a little more context:

  • While the formal establishment of Grameen Bank as an independent bank occurred in 1983, Muhammad Yunus's work with microfinance began earlier, in the 1970's.   
  • His initial projects and research laid the groundwork for the creation of Grameen Bank.
  • The work that lead to the bank being formed began in 1976.
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The correct answer is

1983

Correct Answer:

1983

Detailed Explanation:

  • Muhammad Yunus, the Nobel Peace Prize laureate from Bangladesh, founded Grameen Bank officially in 1983.
  • The establishment of Grameen Bank began informally in 1976 when Muhammad Yunus initiated a research project at the University of Chittagong, offering small loans to poor villagers.
  • Recognizing the transformative potential of small loans, Yunus expanded this model, known as microfinance, which provides collateral-free credit to the poor, primarily rural women, enabling them to escape poverty.
  • The Bangladeshi government officially authorized the establishment of Grameen Bank as an independent financial institution in October 1983 through special legislation called the Grameen Bank Ordinance.

Key milestones:

  • 1976: Muhammad Yunus started small lending experiments.
  • 1983: Formal establishment of Grameen Bank by legislation.
  • 2006: Yunus and Grameen Bank jointly received the Nobel Peace Prize for their efforts in economic and social development.

Additional Information about Grameen Bank:

  • Headquarters: Dhaka, Bangladesh
  • Purpose: Empowerment through microfinance services, poverty alleviation.
  • Innovation: Pioneered the group-lending model without collateral, which later became a global microfinance standard.
  • Impact: Grameen Bank inspired similar initiatives worldwide, transforming the financial inclusion landscape.
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The correct answer is

1983

The correct answer is:

1983

Detailed Explanation:

Muhammad Yunus & Grameen Bank

  • Nobel Laureate Muhammad Yunus founded Grameen Bank in 1983 to provide microloans to the poor, particularly women, in rural Bangladesh.
  • The model was based on trust-based lending (no collateral) to empower low-income borrowers.

Key Milestones

  • 1976: Yunus launched an experimental project in Jobra Village (Chittagong) to test microcredit.
  • 1983: Officially registered as a bank under a special government ordinance.
  • 2006: Yunus and Grameen Bank won the Nobel Peace Prize for combating poverty.

Impact of Grameen Bank

  • Inspired global microfinance movements.
  • Over 9 million borrowers (97% women) as of 2023.
  • Repayment rate: ~98%, challenging traditional banking norms.

Additional Fact:

Yunus’s "16 Decisions" (social development principles) are taught to borrowers, covering hygiene, education, and rejecting dowries.

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