Global Alliance for Banking on Values (GABV) founding member, BRAC Bank, has released a groundbreaking study to measure the impact of its lending to small and medium-sized enterprises (SMEs) in Bangladesh. The work will contribute to the development of a new approach to measuring the impact of values-based banks globally, work that’s being developed by the GABV network.

SME finance results in robust business growth, improved socio-economic outcomes for borrowers and their families, and increases environmental awareness and practice among entrepreneurs, according to a new study from Bangladesh’s largest SME bank.

The Impact Measurement Study on SME borrowers, conducted by the University of Dhaka’s Centre for Corporate Governance and Finance Studies, assessed the impact of lending on BRAC Bank’s SME borrowers.

The study shows that repeat borrowers benefit more than first time borrowers in terms of turnover, assets and sales growth. Many saw their profits and returns on assets increase, leading to significant improvements in income and savings, and encouraging the reinvestment of profits  in the business. The study also revealed that, on average, borrowers who accessed credit on four occasions were likely to be financially independent and no longer require credit.

BRAC Bank credit also had a major impact on the entrepreneurs’ environmental awareness and practice. 87% of enterprises receiving SME loans met common environmental standards.

Speaking at the launch of the results, Mr. Syed Mahbubur Rahman, Managing Director and CEO of BRAC Bank Limited, said, “In line with our philosophy of People, Planet and Profit, we, at BRAC Bank, focus on meeting the financial needs of small entrepreneurs at a grassroots level, who miss out in the traditional banking system.

“The sustainable impact revealed in the study will encourage banks to expand SME finance and entrepreneurs to take on appropriate SME loans to help improve outcomes for people and society. Already the SME Financing Model of BRAC Bank is being replicated globally through the GABV network”.

The study, which was commissioned by the GABV, a growing network of 25 of the world’s leading sustainable banks from Asia, Africa, Australia, Latin America, North America and Europe, was presented at its annual conference in Berlin in March.

The Global Alliance for Banking on Values (GABV), an independent network of the world’s leading sustainable banks welcomes three new members today; Paraguayan microfinance bank, Vision Banco, Nepalese renewable energy specialists, Clean Energy Development Bank, and UK-based sustainable building experts, the Ecology Building Society.

The GABV now numbers 25 of the world’s most progressive financial institutions, with combined balance sheet assets of over US$ 68 billion and almost US$15 billion of additional assets under management. In March of this year the group launched a Berlin Declaration calling for a transition to a more inclusive banking industry that serves the real economy. In particular they want banks to become more transparent focusing on sustainability in a diverse banking landscape.

“The three new members of the GABV epitomise the positive potential of a more diverse banking industry,” says Peter Blom, GABV Chair and Chief Executive Officer (CEO) of European sustainable bank, Triodos Bank. “These banks have different specialist expertise in sectors and regions, they understand their local economies and sectors, and are building long-term, resilient economic growth. Their financial strength and growing impact provides yet more evidence that sustainable banking works and can become an important reference for a more resilient banking industry that serves people first.”

The GABV’s newest members are part of a growing movement of banks, most of whom have performed well before, during and since the worst excesses of the financial crisis.  “What we do matters,” says Beltrán Macchi Salin, CEO of Vision Banco. “For over 20 years we have provided finance for entrepreneurs across Paraguay, helping to build a more inclusive financial system for hundreds of thousands of ordinary Paraguayans. By working with other banks that share our focus on improving people’s quality of life, we plan to extend the impact of our activity further and faster.”

“Focusing on sustainable outcomes is good for communities, the environment, the generations that are yet to come, and the long-term strength of our institution,” says Clean Energy Development Bank’s General Manager, Barsha Shrestha. “We believe banking is about more than just profits. Because we have a singular focus on creating an energy efficient future that connects and empowers are customers, we’ve been able to become the leading bank in promoting renewable and sustainable energy projects especially hydropower, solar, and biomass projects in Nepal. We are more concerned about mobilizing banking resources to strengthen the real economy and we have been the first private sector bank in Nepal to promote woman entrepreneurs. We want to share our learning and benefit from the experience of others who have already faced similar issues, in different contexts.”

Member-owned Ecology Building Society also has an environmental focus, but on another continent and in another market. “We provide different solutions to similar problems,” says CEO, Paul Ellis. “We provide mortgages across the UK for environmentally-positive properties and projects. While the context is different, our values are aligned with our colleagues in Asia, and elsewhere in the world. We’re delighted to have the opportunity to both share our experience and learn by engaging with colleagues from the world’s most progressive financial institutions.”

For more information on the GABV, visit www.gabv.org. 

Contact:

James Niven
GABV
E james.niven@gabv.org
T +31 30 694 2421
M +31 6 5390 8150

International conference ‘Transforming Banking Values‘ including contributions from Tomáš Sedláček, Otto Scharmer and Wendy Luhabe, with opening remarks from Norbert Lammert

Berlin, 13 March 2013 – The Global Alliance for Banking on Values (GABV), a network of the world’s leading sustainable banks, issued today a declaration outlining how the banking system should be transformed. The sustainable banks call for a fundamental shift in how banks operate to make them more transparent, sustainable and diverse.

1.    Transparency.  Only with transparency can trust be restored and people be aligned with the financial system and how it can serve them. All banks must provide full transparency on their business models and use of client funds using common standards to be set by independent experts such as the Global Reporting Initiative.

2.    Sustainability. Banks play a critical role in the transition towards a more sustainable economy. Therefore social and ecological criteria must play a critical role in the creation and use of financial products. All banks must use indicators to report social and ecological impact which should also be used within the regulatory framework.

3.    Diversity. The diversity of economies, cultures and community needs a diverse network of banks. Governments and regulators must include a diversity of banks as an important goal in the process of reframing regulations for the financial sector.

In addition, the 22 GABV banks, whose active members in Germany include GLS Bank and the local branch of Triodos Bank, demanded that regulation of financial markets should focus primarily on a positive vision for the global banking system beyond fixing the consequences of the financial crisis.

Peter Blom, Chair of the GABV and CEO of Triodos Bank: “We want to draw on the successes of groundbreaking banks around the world to develop the partnerships and genuinely innovative approaches necessary to forge a financially viable future for banking, a positive future that starts and ends with the interests of people and the environment they depend on.”

Thomas Jorberg, CEO GLS Bank and member of the Steering Committee of the  GABV: “To change the financial system we need a vision that takes  social and ecological impact into account when making financial decisions. This means that next to profit and risk, a banker also has to judge the social and ecological impact in the real economy.“

On the occasion of the GABV annual members’ meeting, GLS Bank is inviting leaders from business, politics and the financial services industry, as well as financial and economics experts, to Berlin for the first public conference of the Global Alliance for Banking on Values (GABV). Those attending ‘Change-makers: Transforming Banking Values’ will develop visionary financial concepts and sustainable approaches for a humane future in banking and discuss practical examples.

Norbert Lammert, President of Germany’s parliament, the Bundestag, will open the conference of global sustainable banks. The Czech economist Tomáš Sedláček (2012 German Economics Book Prize-winner for “The Economics of Good and Evil”), the co-founder of the Presencing Institute at MIT, Otto Scharmer, and the South African social entrepreneur Wendy Luhabe have already agreed to attend as speakers and roundtable participants. GLS Bank, as a GABV founding member of the alliance of worldwide leading sustainable banks, established in 2009, will serve as host and organiser.

Contact

GLS Bank
Christof Lützel, Press Secretary
E christof.luetzel@gls.de
T +49 173 2786963

GABV
Thomas Steiner, Press Secretary
E thomas.steiner@gabv.org
T +31 6 534 888 13

About the GABV
The Global Alliance for Banking on Values is a network of the world’s leading sustainable banks, set up in 2009. It now has 22 members on six continents. More information at www.gabv.org

About GLS Bank
GLS Bank is the first social-ecological full-service bank in the world. Established in 1974, the cooperative membership bank is the only bank to provide values-oriented financial investments, financing, equity capital, foundations and donations from one source. www.gls.de

International sustainable banking conference includes contributions from Tomáš Sedláček, Otto Scharmer and Wendy Luhabe, with opening remarks from Norbert Lammert on Thursday 14 March, 2013 in Berlin

Bochum, 05.02.2013 – On 14 March GLS Bank will invite decision-makers from the worlds of business, politics and banking, as well as financial and economic experts, to the first public conference of sustainable banking network, the Global Alliance for Banking on Values (GABV) in Berlin. Attendees will discuss how innovative banking models, and surprising partnerships, can transform the banking sector.

Norbert Lammert, President of Germany’s lower house, the Bundestag, will open the conference. Keynote speakers include Czech economist Tomáš Sedláček (2012 German economics book prize for “The economics of good and evil”), Founder of the Presencing Institute at MIT, Otto Scharmer and South African social entrepreneur champion Wendy Luhabe.

Uwe Fröhlich, President of BVR, the central organisation of the cooperative banking group, Georg Fahrenschon, President of the German Savings Banks Association (DSGV) and Sven Giegold, member of the European Parliament, will take part in a panel discussion in the evening focusing on Germany’s role in the international financial environment.

GLS Bank, as a founding member and the only German member bank of Global Alliance for Banking on Values, which was founded  in 2009 and now numbers 22 members with combined assets of over $60 billion, will act as host and organiser.

About the GABV

The Global Alliance for Banking on Values is a network of the world’s leading sustainable banks, set up in 2009. It now has 22 members in six continents. More information at http://www.gabv.org

About GLS Bank

GLS Bank is the first social-ecological full-service bank in the world. Established in 1974, the cooperative membership bank is the only bank to provide values-oriented financial investments, financing, equity capital, foundations and donations from one source. It is represented in seven regions in Germany and, in addition to its head office in Bochum, has branches in Berlin, Bochum, Hamburg, Frankfurt, Freiburg, Munich and Stuttgart. GLS Bank is one of the founding members of the GABV.

Contact

GLS Bank
Christof Lützel, press spokesperson
E christof.luetzel@gls.de
T +49-234-5797-5178

GABV
James Niven, Programme Manager
E james.niven@gabv.org
T + 31 30 694 2421

Banco Fie has become the 22nd values-based bank to join the GABV. The Bolivian grass-roots organisation was founded as a non-governmental organisation by five women in 1985 and operates through 150 branches across the country lending to close to 200,000 entrepreneurs, and serving over 500,000 depositors, many of them in rural areas.

The microfinance institution joins the network at a time of growing interest in the sustainable banking movement, and a broader discussion about robust banking models that could provide a more sustainable future for the global banking industry. A recent GABV report makes the business case for a resilient approach to banking that focuses on the needs of people, and finds an economically viable way to meet them.

“Banco Fie joins two existing Latin American members of the Global Alliance for Banking on Values, and we are delighted to welcome them,” said Peter Blom, GABV Chair and CEO of European sustainable bank, Triodos Bank. “There is much to learn from the impact of values-based Latin American banks. Banco Fie is one of the leading examples in the region and will bring welcome new perspectives to our expanding network. Together we plan to build more momentum for a movement that offers important lessons for the conventional banking industry.”

Announcing their membership Banco Fie CEO, Elizabeth Nava, said: “We are very pleased to join the GABV. We want to share our experience of building a successful bank in Bolivia, and learn from the diverse banks that share our passion for a more inclusive financial sector, capable of safeguarding the long-term future of people and the environment they depend on.”                                                   

Contact:

Répondant aux critères d’adhésion, le Crédit Coopératif vient d’être admis comme 21^ème membre de la GABV. Seule banque française adhérente, le Crédit Coopératif relaie en France la publication de l’étude menée par la GABV qui révèle des différences significatives entre les banques « systémiques » et les banques « durables ». La comparaison des performances financières des dix dernières années montre que celles-ci se consacrent plus à l’économie réelle, sont plus stables et plus résistantes tout en offrant des rendements comparables.

La GABV a réalisé une étude en comparant les performances financières de 22 « banques durables » et de 28 institutions financières d’importance systémique mondiale (GSIFI). Au vu des résultats, elle en appelle aujourd’hui aux responsables politiques et aux régulateurs pour utiliser le modèle de « banque durable » comme point de référence, pour rendre le système bancaire plus résistant et s’assurer qu’il serve l’économie réelle.

Intitulée « Strong and straightforward: The Business Case for sustainable Banking », l’étude analyse la performance des banques au cours des dix dernières années (2002-2011) et montre que les « banques durables », par rapport à leur taille :

- attirent plus de dépôts

- sont mieux capitalisées

- investissent davantage dans une société plus équitable et plus verte

- ont un modèle d’entreprise plus résistant.

Quelques exemples :

GSIFI                                  40,7%

Banques durables                72,4%

GSIFI                                10,0%

Banques durables              12,2%

GSIFI                                 42,0%

Banques durables               72,5%

GSIFI                                 5,3%

Banques durables               7,5%

GSIFI                                  10,8%

Banques durables                9,7%

L’étude révèle également des différences importantes de croissance, les banques durables connaissant une croissance notablement plus rapide que les GSIFI.

Peter Blom, Président de la GABV et Directeur Général de Triodos Bank déclare : « Cette étude est cruciale car elle met en lumière le fait que les banques qui dominent le système bancaire actuel ont des niveaux de prêts relativement faibles et des fonds propres relativement faibles ». « Les banques durables n’ont pas développé leurs modèles en fonction des règlementations. Elles ont développé un business model différent en raison de leur approche basée sur les valeurs. Il est désormais prouvé que cette approche implique un engagement sur l’économie réelle, une résistance démontrable et des rendements réguliers et raisonnables. »

Thomas Jorberg, membre du Comité directeur GABV et Directeur Général de GLS Bank: « (…) les banques durables ont mené leur activité en toute sérénité, en se concentrant sur le financement de l’économie réelle et en adoptant une approche prudente du niveau de leurs fonds propres, précisément car elles considèrent le profit comme un moyen permettant d’atteindre une fin, et non une fin en soi ». « Les régulateurs ont l’occasion de tirer parti de ces conclusions et de faire avancer le secteur bancaire vers des bases plus sûres et plus justes. Nous leur demandons de la saisir. »

A propos du Crédit Coopératif

Banque coopérative au service des acteurs d’une économie responsable, le Crédit Coopératif a pour vocation de concourir au développement des personnes morales qui composent l’économie sociale ; entreprises coopératives ou groupées, associations, mutuelles et plus généralement l’ensemble des organismes au service de l’intérêt général. Il compte également de plus en plus de clients particuliers séduits par son projet. Banque coopérative nationale, le Crédit Coopératif est présent dans toutes les régions avec un réseau de plus de 70 agences.

Le Crédit Coopératif est la première banque française à rejoindre la GABV.

Vers le site: www.credit-cooperatif.coop

Contact

French cooperative bank, Crédit Coopératif, has become the Global Alliance for Banking on Values’ (GABV) 21^st member, as the business case for sustainable banking grows.

Crédit Coopératif, a cooperative bank with over a century’s experience financing the French social economy has become the latest values-based bank to join the GABV. The announcement comes as the GABV releases a study comparing the financial performance of values-based banks like Crédit Coopératif, and the ‘too-big-to-fail’ banks over the last ten years.

The results reveal the strength of a growing movement of values-based banks who allocate more of their balance sheet to lending to the real economy, attract more deposits, and command stronger capital bases than the big banks – defined in the report as Globally Systemically Important Financial Institutions (GSIFIs).

Crédit Coopératif is a pioneer of sustainable finance, offering the largest range of ethical banking products and investments in France. With assets of EUR 14 billion, it offers a range of innovative products tailored for customers focused on building a positive social and environmental future.

“We are very pleased to announce that Crédit Coopératif has joined the Global Alliance for Banking on Values,” said Peter Blom, GABV Chair and CEO of Triodos Bank. “Their long-term commitment to financing the social economy, in a major European economy, provides an important example of the increasing relevance of values-based banks to the broader banking industry.

“Crédit Coopératif join us just as important new research confirms what we have known for some time; that sustainable banks are resilient, committed to the real economy, and produce steady and reasonable returns.”

Speaking at a press conference to announce the results of the research, Crédit Coopératif President, Jean-Louis Bancel welcomed the cooperative’s appointment as the GABV’s newest member: “We are delighted to join the GABV at a time when the need for new, effective and sustainable approaches to banking could hardly be more urgent.  We look forward to sharing our experience in France, and collaborating with like-minded financial institutions from around the world.’’

Contact: