Commission to suggest regulator for Grameen Bank

The Grameen Bank Commission would recommend a specific regulator for Grameen Bank as neither the central bank nor the Microcredit Regulatory Authority now controls the Nobel-winning micro lender.
"The terms of references of the commission instructed us to recommend an authority to regulate and supervise Grameen Bank. We will give a specific recommendation on who should regulate the bank," said Ajmalul Hossain QC, a member of the commission.
His comments came as the three-member commission plans to submit its final report on Grameen Bank and its 48 associated organisations to the government next week.

In May last year, the government established the commission to review the bank's governing structure and its relations to the independent associated companies founded by Nobel laureate Prof Muhammad Yunus.
Hossain said one should keep in mind that Grameen Bank collects deposits from people apart from its borrowers -- a privilege no other microcredit organisation is entitled to.
"So, there should be a sound supervision in an organisation where people's deposits are saved," he told The Daily Star yesterday.
Hossain said the body would keep its focus on Grameen Bank and the associated organisations in line with the terms of references.
He said the interim report, which was submitted in February, largely focused on the bank.
"We didn't write a lot about the associated organisations in the interim report. Our final report will focus on the associated organisations."
He said the final report would provide options for the government to restructure the bank.
Hossain said a number of elected, military and caretaker governments have ruled the country since 1983 when the bank was set up, but no government has overseen it properly.
About setting a minimum educational qualification for the borrower-directors, he said: "It is a big organisation. When the bank was set up our literacy rate was very low. Today, we have advanced a lot. This should be reflected in picking directors for the board."
The interim report said the nine elected borrower-directors should at least pass Class 7 exams.
Under the existing legal framework of the bank, there could be 5.4 lakh shareholders from borrowers, as per their 75 percent share in the bank's Tk 7 crore authorised capital.
"But it was found that 88 lakh shares have been distributed. The additional 82 lakh shareholders have bought shares at Tk 100 each."
He said the government would have to take care of these additional shareholders even if they were made shareholders breaching regulations.
"The government should recognise them and take a decision about them," he said.
He said the local and global movement in support of Grameen Bank would not influence the outcome of the commission's work.
"In fact, nobody within or outside the government has tried to influence the commission. Even, the supporters of Grameen Bank or Prof Yunus haven't tried to influence our work."