For a country considered as among the poorest, one would not expect Bangladesh to be hosting one of the most notably successful banks in the world – the Grameen Bank. Moreover, the decision to build a bank in a country with 8 million poor people is also an unexpected move.

Founded in 1976, Grameen Bank was established by Professor Muhammad Yunus as a project in just one village. The Grameen Bank was founded on the objective that banking services should allow the poor to gain access to loans through terms that are suitable to their economic situation – even without collateral. This led the poor to have more opportunities for self-employment; it allowed them to make investments themselves and eliminate the abusive practices of moneylenders.

From humble beginnings in small villages near the University of Chittagong in Bangladesh, where Professor Yunus teaches, the Grameen Bank has successfully grown into the leading world model for poverty eradication programs through micro lending.

The Grameen Bank also prides itself for being owned entirely by the poor. Through the efforts of Professor Yunus, the Grameen Bank serves 2.6 million borrowers with 1,000 branches in over 42,000 villages. Since its founding, the bank has loaned more than US$ 3.9 billion to the poor and over US$ 3.5 billion has been repaid with interest by the poor rural peoples who have availed of the program. Most importantly, the Grameen Bank has made 46.5% of its borrowers cross the poverty line.

For his continued dedication in eradicating poverty, Professor Yunus and the Grameen Bank were awarded the Nobel Peace Prize in 2006. Recently, he became recipient of the Presidential Medal of Freedom in 2009, which is one of the most prestigious awards given to civilians in the USA. Across the world, similar banks are hoping to replicate the success and objectives of the Grameen Bank and its founder, Professor Yunus.