Using the 1993 and 1996 Bangladesh Demographic and Health Surveys, this paper investigates the effects of having the Grameen Bank in the village of residence on fertility decisions. The effects of the Grameen Bank on womenos empowerment are studied, as womenos empowerment is one of the main chan& nels through which the Grameen Bank may affect fertility. Findings point to the role of the Grameen Bank in affecting peopleos perception regarding family size and family planning. In villages where the Grameen Bank is well estab& lished, between 1993 and 1996 there has been a reduction in womenos ideal number of children and the number of births in the year prior to the survey, and an increase in the use of family planning methods. In villages where the Grameen Bank entered between 1993 and 1996 there has been an increase in husbandsoapproval of family planning methods, suggesting that an immedi& ate impact of the presence of the Grameen Bank is that husbands are more likely to approve of family planning methods. Moreover, having the Grameen Bank in the village is associated with an increase in womenos empowerment as measured by contribution to family support and mobility. There is evidence that womenos empowerment is negatively correlated with the ideal number of children