Dhaka, Nov 2 — Grameen Bank did not share the profits of its associate organisations with its members, the finance minister has said.
"Grameen Bank founded 54 organisations in violation of rules, and then it did not share the profits the organisations made," A M A Muhith said addressing a seminar on microcredit in the capital on Wednesday.
According to the Grameen Bank website, Grameen Bank Project was born in the village of Jobra, Bangladesh, in 1976.
In 1983, it was transformed into a formal bank under a special law passed for its creation. It is owned by the poor borrowers of the bank who are mostly women.
It works for the borrowers, who at present own 95 percent of the total equity of Grameen Bank. The remaining 5 per cent is owned by the government.
The finance minister also said that microcredit is not much useful for the ultra-poor people.
"The ultra-poor people do not benefit from microcredit … it's the less poor people who actually enjoy the fruits," Muhith said at the seminar organised by Palli Karma-Sahayak Foundation.
The finance minister went on to add that microcredit also does not play much role in employment creation.
"But this type of credit has created several rural organisations," he added.
FROM:bdnews24.com
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