Source: Wharton School of the University of Pennsylvania
The notion that banks are built to serve those who are relatively well off has been challenged by Muhammad Yunus, the 2006 Nobel Peace Prize winner and founder of Grameen Bank, a microfinance institution. For the past 30 years, the Bangladeshi banker to the world’s poorest citizens has proven that, even in very difficult environments, providing very small loans to poor farmers and other entrepreneurs can be a profitable business.
On March 11, the China State Council’s Poverty Support Office, France’s Danone Group and Grameen Bank announced plans to jointly set up the Danone Microfinance Fund. It will join a list of newly established Chinese microcredit companies that has been growing in the wake of regulatory loosening over the past year.