Bangladesh plans closer oversight of Grameen Bank
DHAKA (AP) - Bangladesh is placing Grameen Bank, which pioneered small loans for the poor, under closer scrutiny by the country's central bank.
The Cabinet of Prime Minister Sheikh Hasina on Thursday approved the draft of a law to regulate Grameen. The law must also be approved by parliament.
Garmeen was a trail blazer in extending small loans to the poor as a way of overcoming poverty, earning it and founder Muhammad Yunus the 2006 Nobel Peace Prize. It has about 9 million borrowers, mostly women. But Yunus and the government had been at odds for several years over the running of the bank.
A government-appointed investigation found that Grameen Bank violated its charter as a microlender by creating affiliates that did not benefit the bank's shareholders. Mr Yunus was ousted as managing director in 2011 after the High Court ruled the 73-year-old violated retirement laws by serving beyond the age of 60. He has repeatedly accused the government of trying to destroy the bank, but authorities deny the allegations.