Case Study
Is Grameen Bank Sustainable?
Can the Grameen Bank model be replicated in other countries?
26 pages
This paper looks into the reasons behind the success of Grameen Bank as a bank for the poor.
The paper analyzes the Grameen Bank model and looks into the achievements of the Bank in terms of:
- Membership growth;
- Lending volume and portfolio mix;
- Savings mobilization;
- Social development.
The paper also analyzes the sustainability of Grameen Bank and discusses its:
- Institutional viability;
- Financial and economic viability;
- Subsidy dependency;
- Branch-level profitability;
- Borrower viability.
The paper concludes that:
- Grameen Bank is a unique Bangladeshi financial institution that has succeeded in providing credit, without collateral, to over 1.6 million poor people and recording very low default rates;
- Grameen Bank has directly tackled poverty by targeting credit and organizational assistance directly to the poorest people, at reasonable terms that the poor find acceptable;
- The successful replication of Grameen Bank model depends on the creativity and commitment of the leadership and its ability to carve out a market niche.
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