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Grameen Bank Defies Regulatory Order to Remove Yunus, FT Says

March 3 (Bloomberg) -- Grameen Bank, a Bangladeshi microfinance specialist founded by Muhammad Yunus, is resisting an order by Bangladesh Bank to remove Yunus from the managing directorship, the Financial Times reported.

The central bank, which is also the country’s financial regulator, said Yunus, 70, the 2006 Nobel peace prize winner and a pioneer of microfinance, was relieved of his responsibilities for non-compliance with its rules, the newspaper said.

Grameen said it had taken legal advice, in accordance with which Yunus is continuing in office, the FT said.

The company said it’s followed all relevant laws, including the process for reappointing Yunus, who has been managing director since 1983 and was reappointed most recently in 2001, the newspaper reported.

The government controls 25 percent of the voting members of Grameen’s board and has appointed a chairman of the bank, which takes deposits from the rural poor and has $955 million in outstanding loans to 8.3 million borrowers, the FT said.

To contact the reporter on this story: Alan Purkiss in London on apurkiss@bloomberg.net.

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net.

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