What is the Grameen Bank and how does it operate?

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What is the Grameen Bank and how does it operate?

The Grameen Bank is a microfinance institution founded by Muhammad Yunus in Bangladesh in 1983. It operates by providing small loans, known as microcredit, to poor individuals, particularly women, who lack access to traditional banking services. The bank follows a group lending model, where borrowers form small groups and are collectively responsible for each other's loans. Grameen Bank focuses on empowering the poor and promoting social development by providing financial services, including loans, savings accounts, and insurance, to help individuals start or expand their own businesses and improve their living conditions.