A Nobel Prize-winning economist has been awarded honorary degrees from two Scottish universities.

A Nobel Prize-winning economist has been awarded honorary degrees from two Scottish universities.

Bangladeshi economist Professor Muhammad Yunus received honorary degrees from Glasgow University and Glasgow Caledonian yesterday.

Professor Yunus, the founder and managing director of Grameen Bank, was awarded the Nobel Peace Prize two years ago for his life's work combating global poverty.

After receiving the honorary degree at Glasgow University, he delivered a free public lecture on Social Business to bring New Economic Order, as part of the prestigious Stevenson and Adam Smith Research Foundation lecture series.

Sir Muir Russell, principal of Glasgow University, said: "Professor Muhammad Yunus challenges the received wisdom on the economic relationship between rich and poor. His thinking resonates with the economic philosophy of one of the university's greatest luminaries."

Professor Yunus has worked to develop the concept of micro-credit - providing small, unsecured business loans to entrepreneurs who are too poor to qualify for traditional bank loans.

Professor Yunus said: "It is indeed a great honour to receive the honorary degree of Doctor of the University of Glasgow from a world-class university which shines with memories of great economist Adam Smith."

Professor Christopher Berry, of the Stevenson Trust Committee, said: "Adam Smith was one of the greatest minds to teach in Glasgow University and Daniel Stevenson one of the city and university's greatest benefactors. This legacy is conjoined in the Stevenson-Smith lecture series and we are delighted to welcome Professor Yunus to Glasgow."

Earlier yesterday, Professor Yunus delivered the inaugural Magnus Magnusson lecture at Glasgow Caledonian University.

• Sally Magnusson interviews Professor Yunus in The Herald tomorrow.