Bank that helps the poor is set to open in Glasgow
Jasper Hamill
6 Jul 2010
The Nobel Prize-winning founder of a bank that has lifted millions of people out of poverty has vowed to establish the UK's first branch in Glasgow within a year.
Professor Muhammad Yunus hopes that establishing the Grameen Bank in the city will help the poorest people in Glasgow to stop claiming benefits and start making money by running their own businesses.
His radical approach to finance involves giving micro-loans which can be used to start social businesses, which bring benefits to local communities.
He was in Glasgow for final negotiations with John Swinney, Secretary for Finance and Sustainable Growth.
At the meeting, Yunus asked Swinney to ensure that people who take loans still receive benefits payments while they start businesses.
Although Grameen has not publicly announced its 12-month schedule, its backers understand this is the timescale the bank is working to.
Yunus said: "Everybody was supportive and everyone went out with enthusiasm. We will make this happen."
A branch looks set to open in Site Hill, but Grameen is also considering working in Drumchapel or the east end. If the first branch is successful, several may be opened around the city.
Asylum seekers will also be offered loans to help them start businesses.
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Our aim is to help people unleash their own creativity and help themselves ... by contributing to society
Professor Muhammad Yunus
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Yunus added: "This is our chance to help people make a living so they can become part of society. Our aim is to help people unleash their own creativity and help themselves - firstly by not being a burden, secondly by contributing to society and
moving on with their lives."
Swinney said the meeting was "useful and constructive".
He said: "The Grameen Bank is a very innovative proposal which has much to offer in terms of tackling social and economic challenges and I was delighted to meet with Professor Yunus to discuss how the bank is developing proposals looking at a move to Scotland.
"The Scottish Government will be delighted to take part in further work to take forward this exciting concept."
The Grameen Bank was founded in Bangladesh 30 years ago and gives small loans, mostly to female borrowers. It has helped more than 100 million families and boasts a 98% repayment rate - far higher than most banks.
Since its inception, the bank has set up offices across the world, including New York City.
It is working in conjunction with Glasgow Caledonian University, which also launched the Yunus Centre in Social Business and Health yesterday.
Under the guidance of Professor Cam Donaldson, a leading health economist, the centre will undertake a long-term research programme into the social benefits of micro-finance.
Professor Pamela Gillies, principal and vice-chancellor of Glasgow Caledonian University, first persuaded Yunus to take an interest in Glasgow after showing him around some of the city's most deprived areas. Currently, a third of residents are claiming some kind of benefit.
Gilles said: "If this can work in America, it can work here."
