Award winner and founder of Gramin Bank Muhammad Yunus On Tuesday, he pushed for a new law for banking to help microfinance reach the unbanked and encourage the creation of social businesses. He said that at present, there is a banking law which stipulates several rules for banks, most importantly, to have collateral for lending.

“The first thing I have been repeating for many years is that for microfinance to catch on in business, you have to create a new law for banking.

Yunus said at the 13th Resolution Global Summit 2021, “Today, there is only one law for banking called banking law which defines what a bank should be. Banking law means you must have collateral and other requirements ”

According to him, in order to have a bank for the poor, there is a need to create a new banking structure which is not based on collateral.

Yunus said, “We need a complete redesign of the financial system. And within the financial system, we have to build a social business financial system—social business bank, social business investment fund, social business microcredit bank, etc.”

He also expressed concern over the concentration of wealth in the hands of too few.

Yunus said that this gap can be bridged if everyone becomes an entrepreneur.

finance He said that entrepreneurship is the oxygen and one cannot become an entrepreneur without being involved in the financial system.

He said, “Why can’t we create a new financial system so that everyone is connected to it. If you belong to it, you can transform yourself and you can have a share in the wealth.”