A significant restructuring is on the horizon for Nobel Prize-winning microfinance institution Grameen Bank, with plans to reduce the government's ownership stake and reshape its board management structure.
According to a draft ordinance recently published on the Financial Institutions Division's website under the Ministry of Finance, the government's stake in Grameen Bank is set to decrease from 25 percent to 5 percent. The ordinance also proposes amendments to the Grameen Bank Act of 2013.
The proposed amendment includes a reduction in the number of government-appointed directors on the bank's board from three to one.
Additionally, it eliminates the government's authority to appoint the chairman of the bank. Instead, a 12-member board, which includes representatives of the microfinance borrowers, will elect the chairman independently.
If implemented, these changes aim to strengthen Grameen Bank's autonomy by limiting government interference, thereby increasing control for the bank's microfinance recipients over its governance.
Grameen Bank, founded by Nobel Laureate Professor Muhammad Yunus, has long been a symbol of empowerment for the rural poor through microfinance.
Prof Yunus served as the bank's managing director until 2011, when the Awami League government forced his resignation, citing his age as the reason.
The move drew widespread criticism both domestically and internationally.
The proposed reforms reflect a renewed emphasis on ensuring that Grameen Bank operates with greater independence. —UNB
