Case Study The Grameen Bank Harvard University案例研究格莱珉银行哈佛大学.ppt

Case Study: The Grameen Bank Lecture # 13 Week 7 Structure of this class Muhammad Yunus and the founding of Bangladesh’s Grameen Bank The group lending methodology re-visited Limits to Group Lending Grameen Bank II Main challenges Yunus and the Grameen Bank 1970s: War against Pakistan, flooding, famine 80% of the population living in poverty Yunus: Economist trained in the US teaching at Chittagong University ( southeast Bangladesh) 1976: Yunus started a series of experiments lending to poor households in nearby Jobra Activities financed: rice husking, bamboo weaving Finding: poor borrowers without collateral making profits and repaying Financing out of his own pocket could not meet growing demand Yunus convinced the Bangladesh Central Bank to help him set up a special branch that catered the poor of Jobra Another trial in Tangail (North Central Bangladesh) assured success was not region-specific Grameen went nationwide, village by village, thanks to donor agencies: IFAD, Ford Foundation, and the governments of Bangladesh, Norway, and the Netherlands --? Rapid growth Group lending methodology Key to the success of rapid growth Group of potential clients form groups (5 members) Loans made to individual participants within the group Joint responsibility: if a member defaults all members have to pay for her or else the entire group excluded from future loans Group lending under joint responsibility gives costumers incentives to select responsible partners, to (peer) monitor, and repay A five-member group is in turn part of a larger “center” composed of eight groups Under the the Grameen “classic” methodology Advantages: Economies of scale “Agency Costs” were reduced as the bank delegated screening, monitoring, and loan enforcement onto the borrowers via “social sanctions” Efficiency gains: borrowers faced lower agency costs Promotion of mutual assistance and solidarity (insurance) Disadvantages Group lending under joint responsibility difficult