March 07, 2007 Wednesday Safar 17, 1428
Yunus offers to set up micro credit bank
By Shahid Iqbal
KARACHI, March 6: The socio-economic scientist and Nobel Prize winner professor Yunus offered Pakistan to start micro credit bank on build-operate-transfer (BOT) as he did in other countries.
He was talking to media on the sidelines of a workshop organised by the State Bank of Pakistan at its Learning Resource Centre.
The founder of Grameen Bank Muhammad Yunus while narrating the story of miracles still appearing from the services of the bank said Grameen Trust had already established micro credit banks in Kosovo, Turkey, Zambia and Costa Rica. He said China had invited him to establish a micro credit bank
He said the growth of Grameen Bank in Bangladesh was so rapid that each day two new branches were opened during 2006 while in 2005 each day a new branch was opened.
ââ¬ÅThe fast growth is not out of control and we are cautious,ââ¬Â said the soft-spoken Bangladeshi banker whose branch network has reached 2,300.
He said every new branch had to mobilise its own deposits to provide small loans and within a year the branch has to come at break-even point. Each new branch bears all expenditure by itself.
He suggested that nobody should talk about the poverty eradication and efforts should not be made to address each or many problems. ââ¬ÅIf a person targets to help a single person to bring him or her out from the poverty, it will work and it does not need procedures, training, documents or any other thing,ââ¬Â he lamented.
ââ¬ÅMicro credit is a social business,ââ¬Â said Mr. Yunus adding that Bangladesh has witnessed dramatic changes in the society, especially because of women empowerment.
He said out of 7 million borrowers of Grameen Bank 97 per cent are women and 58 per cent of them have crossed poverty line. He said 100 per cent members of Grameen family will cross the poverty line by 2015.
He said poverty had been steadily declining in Bangladesh while 80 per cent of the poor have direct connections with the Grameen Bank and by 2010 the outreach of the bank will be 100 per cent to the poor of the country.
He explained and pointed out the problems, which could be faced by a micro credit bank. However, he was a strong advocate of social services and advised the bankers, who listened carefully to the respectable Nobel laureate, to train their people for this job.
He said a person, who deals with corporate sector, is not fit for lending Rs5,000 to a poor.
He narrated his experience how he and his team penetrated in the minds of the poor women who were not ready to accept their role to earn and to get rid of the poverty.
He said the micro credit should not be taken as another money making opportunity as banks used to do. He suggested that banks should create a subsidiary for this purpose.
The Grameen Bank can only function in villages as per law, he said and added that the commercial banks used to mobilise money from rural areas and bring it to cities like Karachi and Islamabad. This means the rural areas have no liquidity. The money earned from the rural areas should be spent in the same areas to help the poor for running businesses.
He reiterated his support for issuance of a Saarc passport and said initially up to 10,000 passports should be issued and each year 10 to 12 thousands should be added. This will help to improve the relations between nations of the region.
ââ¬ÅI believe our future lies in Saarc,ââ¬Â he said. He also suggested that each university should have some Saarc students, which will help students from one country to familiarise with others.
http://www.dawn.com/2007/03/07/ebr2.htm
Yunus offers to set up micro credit bank
By Shahid Iqbal
KARACHI, March 6: The socio-economic scientist and Nobel Prize winner professor Yunus offered Pakistan to start micro credit bank on build-operate-transfer (BOT) as he did in other countries.
He was talking to media on the sidelines of a workshop organised by the State Bank of Pakistan at its Learning Resource Centre.
The founder of Grameen Bank Muhammad Yunus while narrating the story of miracles still appearing from the services of the bank said Grameen Trust had already established micro credit banks in Kosovo, Turkey, Zambia and Costa Rica. He said China had invited him to establish a micro credit bank
He said the growth of Grameen Bank in Bangladesh was so rapid that each day two new branches were opened during 2006 while in 2005 each day a new branch was opened.
ââ¬ÅThe fast growth is not out of control and we are cautious,ââ¬Â said the soft-spoken Bangladeshi banker whose branch network has reached 2,300.
He said every new branch had to mobilise its own deposits to provide small loans and within a year the branch has to come at break-even point. Each new branch bears all expenditure by itself.
He suggested that nobody should talk about the poverty eradication and efforts should not be made to address each or many problems. ââ¬ÅIf a person targets to help a single person to bring him or her out from the poverty, it will work and it does not need procedures, training, documents or any other thing,ââ¬Â he lamented.
ââ¬ÅMicro credit is a social business,ââ¬Â said Mr. Yunus adding that Bangladesh has witnessed dramatic changes in the society, especially because of women empowerment.
He said out of 7 million borrowers of Grameen Bank 97 per cent are women and 58 per cent of them have crossed poverty line. He said 100 per cent members of Grameen family will cross the poverty line by 2015.
He said poverty had been steadily declining in Bangladesh while 80 per cent of the poor have direct connections with the Grameen Bank and by 2010 the outreach of the bank will be 100 per cent to the poor of the country.
He explained and pointed out the problems, which could be faced by a micro credit bank. However, he was a strong advocate of social services and advised the bankers, who listened carefully to the respectable Nobel laureate, to train their people for this job.
He said a person, who deals with corporate sector, is not fit for lending Rs5,000 to a poor.
He narrated his experience how he and his team penetrated in the minds of the poor women who were not ready to accept their role to earn and to get rid of the poverty.
He said the micro credit should not be taken as another money making opportunity as banks used to do. He suggested that banks should create a subsidiary for this purpose.
The Grameen Bank can only function in villages as per law, he said and added that the commercial banks used to mobilise money from rural areas and bring it to cities like Karachi and Islamabad. This means the rural areas have no liquidity. The money earned from the rural areas should be spent in the same areas to help the poor for running businesses.
He reiterated his support for issuance of a Saarc passport and said initially up to 10,000 passports should be issued and each year 10 to 12 thousands should be added. This will help to improve the relations between nations of the region.
ââ¬ÅI believe our future lies in Saarc,ââ¬Â he said. He also suggested that each university should have some Saarc students, which will help students from one country to familiarise with others.
http://www.dawn.com/2007/03/07/ebr2.htm
