Related Resources

Risk Management for MFIs - II
Risk management has very wide scope, as it necessarily covers all functions of an organisation. It is also an un-ending process under which continuous efforts are required from everyone in the organisation. However, setting up risk a management function is not very difficult. Any organisation...
215.58 KB
Download
Member Savings
The first note in this series, ‘What is Grameen II?’ introduced the Grameen Bank and the changes it has made recently, known as the ‘Grameen Generalised System’ or ‘Grameen II’. This second note in the Grameen II series now addresses specifically the...
37.62 KB
Download

Lessons From The Grameen II Revolution

Author: Stuart Rutherford, David Cracknell, Graham A.N. Wright
Published: May 06, 2005

Abstract:

Grameen took 27 years to reach 2.5 million members – and then doubled that in the full establishment of Grameen II. Even in Bangladesh’s fiercely competitive environment Grameen continues to grow at a remarkable rate attracting around 140,000 new members each month – a staggering 1.7 million new members every year. In the three years to December 2005, Grameen’s deposit base tripled and its loans outstanding doubled. In the same period the bank has introduced a more conservative provisioning policy and built up a formidable loan provision for its troubled housing loan portfolio. At the same time the quality of the loan portfolio has significantly improved, as did profitability. Drop-outs are returning, and even some old defaulters are repaying and re-joining. Market-led Grameen II is yielding very encouraging results. Grameen customers are using the Grameen II products in a wide variety of ways, to meet the diversity of needs and challenges that face them. This note describes the effects of the new Grameen II efforts on the overall Grameen Bank system and on how clients are responding and provides reflections on what these efforts may mean for Grameen and the microfinance industry in the near future.

Tags: Grameen II , Impact assessment , Savings , Bangladesh , South Asia , Grameen bank , Microfinance , Retail banks , Institutional change

0 Comment
0 Likes Like
51.73 KB
Download

Leave a Comment