Significant changes are set to take place in the ownership structure and board composition of Grameen Bank
The proposed changes are detailed in the draft of a new ordinance.
Grameen Bank, the Nobel Prize-winning microfinance institution, is poised for a significant overhaul in its ownership structure and board composition. Under a draft ordinance published on the Financial Institutions Division website, the government plans to reduce its stake in the bank from the current 25 percent to 5 percent. The ordinance, which proposes amendments to the Grameen Bank Act of 2013, also seeks to decrease the number of government-appointed directors from three to one and eliminate the government’s role in appointing the bank’s chairman.
If enacted, the changes will allow the 12-member board to elect the chairman, enhancing the institution's autonomy. These proposed reforms follow years of scrutiny during Sheikh Hasina’s 15-year tenure, which ended in a mass uprising last August.
The new structure aims to grant greater control to the bank’s microcredit borrowers while reducing state influence. Grameen Bank, founded by Professor Muhammad Yunus—currently heading Bangladesh's interim government—has faced challenges over the years, including Yunus’s forced resignation as managing director in 2011 due to exceeding the retirement age for public servants.
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