One unusual feature of the Grameen Bank is that it is owned by the poor borrowers of the bank, most of whom are women.

Moneylenders usually charge higher rates to poorer borrowers than to less poor ones.

The portion of subprime loans, which are given largely to poor and minority borrowers, past due or in foreclosure rose to 17.86 percent, from 16.42 percent.

Hasina has accused Grameen Bank and other microfinance institutions of charging high interest rates and "sucking blood from the poor borrowers."

But they aren't giving it back to the poor borrowers.

Only 30 microfinance initiatives have grown to serve more than 100,000 poor borrowers.

Zinman recently co-authored a randomized controlled trial study evaluating the impact of microcredit on poor borrowers in the Philippines.

Associates' practices primarily victimized poor and unsophisticated borrowers, commission officials said.

Yesterday, they hailed the concession as a victory for the mainly poor and unsophisticated borrowers to whom loans with the insurance coverage are marketed.

Campaigners argue that their high cost means poor borrowers can be sucked into a cycle of debt.