Banker to the Poor - Revision history

Marcin at 20:23, 3 December 2018

2018-12-03T20:23:02Z

← Older revision		Revision as of 20:23, 3 December 2018
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	Banking the unbanked and untouchable - lending to the poorest women of Bandladesh. Success came from lending groups of 5+ members where accountability and mutual aid were part of the design.		Banking the unbanked and untouchable - lending to the poorest women of Bandladesh. Success came from lending groups of 5+ members where accountability and mutual aid were part of the design.

	This went against all odds of marketing - the customers did not want loans, and there were tremendous pressures against women - who could not even leave their house unattended - taking charge of their self-determination.		This went against all odds of marketing - the customers did not want loans, and there were tremendous pressures against women (who could not even leave their house unattended) taking charge of their self-determination.

	Inspiring and eye-opening.		Inspiring and eye-opening.

Marcin: /* Quotes */

2018-11-11T18:43:48Z

Quotes

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	*‘Yunus, you really want to open a new branch of our bank, do you?’		*‘Yunus, you really want to open a new branch of our bank, do you?’
	‘No, not at all. I just want to lend money to the poor.’		‘No, not at all. I just want to lend money to the poor.’
			*p. 92 - How unexpectedly and quite randomly our lives proceed. You just happen to drop in on
			the right person at the right time, and everything clicks into pkce. A few months earlier, I
			had no possibility of achieving my plans for the poor, but by chance I happened upon the
			right man, and it transformed our tiny university research project into a banking
			experiment that would catch national attention.

Marcin: /* Quotes */

2018-11-11T18:40:35Z

Quotes

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	who could not even aspire to a job of cleaner, that I wanted to develop my credit		who could not even aspire to a job of cleaner, that I wanted to develop my credit
	programme.		programme.
			*‘Yunus, you really want to open a new branch of our bank, do you?’
			‘No, not at all. I just want to lend money to the poor.’

Marcin: /* Quotes */

2018-11-11T18:37:40Z

Quotes

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	‘Not too comfortable,’ he admitted.		‘Not too comfortable,’ he admitted.
	I shook my head: ‘Bankers keep telling me how indispensable collateral is, but in fact it		I shook my head: ‘Bankers keep telling me how indispensable collateral is, but in fact it
	does not protect the ~~banks1~~		does not protect the banks investment. What it really does is push the poor away from
	investment. What it really does is push the poor away from
	the banks.’		the banks.’
	I opened a newspaper and showed him the recently published list of the rich who did not		I opened a newspaper and showed him the recently published list of the rich who did not
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	need to be compensated, even in a small way for doing this work. The entire experiment		need to be compensated, even in a small way for doing this work. The entire experiment
	is holding only by a thread and needs institutional support.’		is holding only by a thread and needs institutional support.’
			* I saw a girl sweeping
			the street outside. She was extremely thin, barefoot and wore a ring in her nose, exactly
			like thousands of cleaners one sees in Dhaka streets. This woman could work all day
			long, seven days a week, and she would never earn more than what was necessary for her
			bare subsistence. She worked just to feed herself and her children, She was one of the so-
			’ called lucky ones, for she had a job. It was for women like her, and for all those women
			who could not even aspire to a job of cleaner, that I wanted to develop my credit
			programme.

Marcin: /* Quotes */

2018-11-11T18:33:35Z

Quotes

← Older revision		Revision as of 18:33, 11 November 2018
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	the rich, knowing full well they will never repay it?’		the rich, knowing full well they will never repay it?’
	‘Not too comfortable,’ he admitted.		‘Not too comfortable,’ he admitted.
	*I shook my head: ‘Bankers keep telling me how indispensable collateral is, but in fact it		I shook my head: ‘Bankers keep telling me how indispensable collateral is, but in fact it
	does not protect the banks1		does not protect the banks1
	investment. What it really does is push the poor away from		investment. What it really does is push the poor away from
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	grateful if you make good use of it.1"		grateful if you make good use of it.1"
	He laughed. But I was being quite serious.		He laughed. But I was being quite serious.
	*‘I bet you that by using my method of distribution and recovery, repayment rates would		‘I bet you that by using my method of distribution and recovery, repayment rates would
	far exceed 10 per cent. And you would save the cost of appraising loan requests, all the		far exceed 10 per cent. And you would save the cost of appraising loan requests, all the
	salaries of staff, engineers, technicians, loan officers, and lawyers, all that would be		salaries of staff, engineers, technicians, loan officers, and lawyers, all that would be
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	financiers, in short the backbone of the society’s upper class, the government hesitates to		financiers, in short the backbone of the society’s upper class, the government hesitates to
	put them all in jail.		put them all in jail.
			*P88 - I told him what I was doing on an experimental basis just around my university, and how
			I was using my students on an unsalaried basis: ‘They donate their time, and I use the
			budget from my field research to pay for expenses. The loans are being repaid and the
			situation of our borrowers is improving by the day, but I worry for my students. They
			need to be compensated, even in a small way for doing this work. The entire experiment
			is holding only by a thread and needs institutional support.’

Marcin: /* Notes */

2018-11-11T18:29:38Z

Notes

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	=Notes=		=Notes=
	*P84 - commercial banks have 10% repayment. Grameen boasted 99% repayment.		*P84 - commercial banks have 10% repayment. Grameen boasted 99% repayment.

			=Quotes=
			*I once had the following conversation with a friend of mine who was president of the
			government-owned Bangladesh Industrial Development Bank. I asked him:
			‘Why do you call yourself a bank?’
			‘What do you mean?’ he said.
			‘Well, the repayment rate of your borrowers has been less than 10 per cent over the last
			twelve years; how can a self-respecting banker go on making millions of dollars of loans
			to rich clients who never bother paying back?’
			‘Well, these have been hard economic times, a lot of new ventures have gone bankrupt,’
			he explained. ‘It is difficult to get new industry going in a country like ours.’
			‘Why don’t you take the sign Bangladesh Industrial Development Bank off the building
			and put up a new sign that says Charity Organization for the Rich?’
			He laughed, but I kept pestering him: ‘How does it feel to dole out bundles of money to
			the rich, knowing full well they will never repay it?’
			‘Not too comfortable,’ he admitted.
			*I shook my head: ‘Bankers keep telling me how indispensable collateral is, but in fact it
			does not protect the banks1
			investment. What it really does is push the poor away from
			the banks.’
			I opened a newspaper and showed him the recently published list of the rich who did not
			repay their loans. All the biggest families were there. He nodded.
			‘Would you like to know how I would run the Industrial Development Bank if I were
			given responsibility for it?’
			‘You would hire more expensive lawyers to engage legal actions that take years and that
			remain inconclusive for technical reasons?’ he suggested.
			‘Not at all,’ I said. ‘I would simplify the whole thing. I would take loads of money, put it
			in a helicopter and go around the country throwing it out the window. And the next day I
			would run a big ad in the newspaper and
			on radio saying that it was the Industrial Development Bank raining money-down on
			them, and if anyone picked up some of the cash, could they please return the money
			within such and such a period, adding an interest charge. And I would add, “We’d be
			grateful if you make good use of it.1"
			He laughed. But I was being quite serious.
			*‘I bet you that by using my method of distribution and recovery, repayment rates would
			far exceed 10 per cent. And you would save the cost of appraising loan requests, all the
			salaries of staff, engineers, technicians, loan officers, and lawyers, all that would be
			saved. You’d need no documentation and hardly have any overhead costs whatsoever,
			just the cost of the helicopter and the ads.’
			This tongue-in-cheek proposal illustrates the difference between how institutions view
			the rich and the poor. Instead of repaying their debts, the rich in Bangladesh plead: ‘Our
			industries are sick, we want to improve them. Please give .us more credit!’
			Because the defaulters are their friends, relatives, political supporters, backers, dignified
			financiers, in short the backbone of the society’s upper class, the government hesitates to
			put them all in jail.

Marcin at 18:25, 11 November 2018

2018-11-11T18:25:56Z

← Older revision		Revision as of 18:25, 11 November 2018
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	http://www.gyanpedia.in/Portals/0/Toys%20from%20Trash/Resources/books/yunus.pdf		http://www.gyanpedia.in/Portals/0/Toys%20from%20Trash/Resources/books/yunus.pdf

			=Notes=
			*P84 - commercial banks have 10% repayment. Grameen boasted 99% repayment.

Marcin: Created page with "Spectacular story of the rise of a Nobel Peace Prize winner. Banking the unbanked and untouchable - lending to the poorest women of Bandladesh. Success came from lending grou..."

2018-11-11T18:24:25Z

Created page with "Spectacular story of the rise of a Nobel Peace Prize winner. Banking the unbanked and untouchable - lending to the poorest women of Bandladesh. Success came from lending grou..."

New page

Spectacular story of the rise of a Nobel Peace Prize winner.

Banking the unbanked and untouchable - lending to the poorest women of Bandladesh. Success came from lending groups of 5+ members where accountability and mutual aid were part of the design.

This went against all odds of marketing - the customers did not want loans, and there were tremendous pressures against women - who could not even leave their house unattended - taking charge of their self-determination.

Inspiring and eye-opening.

http://www.gyanpedia.in/Portals/0/Toys%20from%20Trash/Resources/books/yunus.pdf