Implications of Grameen banking system in Europe: prospects and prosperity

The philosophy of Grameen (rural) banking system was invented by a maverick economist (Dr Yunus) in a tiny village of Bangladesh in 1976, with the aim to eliminate poverty and improve the socio‐economic condition of the rural poor. The bank provides loans to poor people who are unable to provide collateral and indoctrinated in Grameen social values, known as the “sixteen decisions”. Grameen borrowers also vow to observe the bank’s “four basic principles”, and they are the owners (92 per cent) of the bank. Grameen bank began its operations by giving a small amount of money ($30) to 40 people. Today, it employs 14,000 staff and has disbursed more than $1 billion dollars of loan among two million rural people in Bangladesh of which 95 per cent are women, and the rate of its loan repayment is 98 per cent. The Grameen is functioning not only in Bangladesh but also in 50 countries across Asia, Europe, Africa, Oceania, and in the USA. Moving onto the implementation of Grameen‐type micro‐credit systems in Europe, or elsewhere, the differences in socio‐culture, economics and politics (between Bangladesh and the region concerned) should be considered. Thus, this paper is an attempt to investigate the prospects of the implementation of Grameen/micro‐credit banking system in European socio‐economic and cultural contexts.