The bank also accepts deposits, provides other services and runs several development-oriented businesses including fabric, telephone and energy companies. A group-based credit approach is applied which utilizes the peer-pressure within the group to ensure the borrowers follow through and use caution in conducting their financial affairs with strict discipline, ensuring repayment eventually and allowing the borrowers to develop good credit standing. The system of this bank is based on the idea that the poor have skills that are under-utilized. The word "Grameen" is derived from the word "gram" and means "rural" or "village" in Bangla language. The Grameen Bank is a Microfinance organization and community development bank started in Bangladesh that makes small loans(known as microcredit or "grameencredit") to the impoverished without requiring collateral. He is one of the founding members of Global Elders. In early 2007 Yunus showed interest in launching a political party in Bangladesh named Nagareek Shakti (Citizen Power), but later discarded the plan. He is the author of “Banker to the Poor” and a founding board member of Grameen America and Grameen Foundation. These loans are given to entrepreneurs too poor to qualify for traditional bank loans. He previously was a Professor of Economics where he developed the concepts of microcredit and microfinance.
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