Microfinance pioneer Muhammad Yunus is taking legal action after the Bangladeshi Central Bank attempted to remove him from his position as managing director of the Grameen Bank.

In a letter, Grameen was informed that 70-year-old Nobel Laureate Yunus must stand down as he had violated the country’s retirement laws by staying in his post past the statutory retirement age of 60, and because he had not received the required government approval when appointed in 1999.

However, Yunus has refused to yield, and in a statement, Grameen said it was taking legal advice.

It added: “Grameen Bank has been duly complying with all applicable laws. It has also complied with the law in respect of appointment of the managing director.

“According to the Bank’s legal advisers, the founder of the Grameen Bank, Nobel Laureate Professor Muhammad Yunus, is accordingly staying in office.”

Grameen is 25-per-cent-owned by the Bangladeshi government and was a pioneer of microfinance, which involves providing small loans to the poor.