Economists bin propaganda of Grameen Bank's NGO status

Posted by BankInfo on Sun, Mar 13 2011 03:38 am

As there is a move to ascertain the status of the Grameen Bank as a non-government organization (NGO), some eminent economists and former governors of Bangladesh Bank (BB) have come up with the conclusion that the move is a mere propaganda only to mislead people. It is evident in some media reports in the country and overseas that a quarter is trying hard to establish Grameen Bank as an NGO and the BB is not supposed to do anything with its operation like what it had done recently.
The economists, however, preferred anonymity and did not want to make detailed comments on this issue as the Grameen Bank's matter is still in the court.
Referring to the special ordinance under which Grameen Bank has been created, a former BB governor said this is a financial organization under the central bank, and not like NGOs that are registered with different authorities other than the BB. He said Grameen Bank never ever got registration as an NGO from the authorities concerned like social welfare department; rather it was established under the special ordinance, which incorporates some vital clauses of the Bank Company Act.
Another former governor said under the act, the BB is empowered to instruct Grameen Bank and it (Grameen Bank) should follow the direction like any other banks under its umbrella.
A senior economist strongly shared the same view saying that Grameen Bank is in no way an NGO. He trashed the move to change its status, observing that this move would only mislead the common people.

News: The Independent/ Bangladesh/ Mar-13-2011

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