Mumbai, Oct 12 (PTI) Nobel laureate and founding father of Grameen Financial institution Muhammad Yunus on Tuesday emphasised on the creation of a brand new regulation for banking to assist microfinance attain unbanked folks and encourage the creation of social companies.
He mentioned that presently, there’s one banking regulation that prescribes quite a lot of rules for banks, most significantly of getting collateral for providing loans.
“The very first thing that I’ve been repeating for a few years is that to ensure that microfinance to take maintain in enterprise, you must create a brand new regulation for banking.
“At present, there is just one regulation for banking known as banking regulation which defines what a financial institution needs to be. The banking regulation implies that you must have collateral and different necessities,” Yunus mentioned on the thirteenth Sanklap International Summit 2021.
In response to him, for having a financial institution for the poor, there’s a want for creation of a brand new banking construction which isn’t primarily based on collateral.
“We’d like a whole redesign of the monetary system. And throughout the monetary system, we have now to construct a social enterprise monetary system-social enterprise financial institution, social enterprise funding funds, social enterprise microcredit banks, and so forth,” Yunus famous.
He additionally raised considerations over focus of wealth within the fingers of only a few folks.
Yunus mentioned this hole will be diminished if everybody turns into an entrepreneur.
Finance is the oxygen of entrepreneurship and one can’t have entrepreneurs with out having connections with the monetary set-up, he mentioned.
“Why can”t we create a brand new monetary system, so that everybody has a reference to it. When you’ve got a reference to it, you then change your self and you may have a share within the wealth,” he added. PTI HV HRS
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