Global Alliance for Banking on Values Proves There’s Profit and Positive Impact in Sustainability-focused Banking
The Alliance now asks ‘Why isn’t all banking done this way?’
ZEIST, THE NETHERLANDS: The Global Alliance for Banking on Values (GABV), a not-for-profit organisation representing a network of the world’s leading values-based banks, today released an updated report reinforcing the business case for the growing values-based banking movement. Based on 10 years of data, the GABV is posing a question to policy makers, regulators and banking institutions worldwide that asks ‘Why isn’t all banking done this way?’
Following the 2008 financial crisis, banks that put people before profit have gained recognition and are growing in strength and number. Whether called regenerative banking, ethical banking, values-based banking or sustainable banking; a growing number of banking institutions are reassessing their role in supporting the delivery of social, economic and environmental impact. The GABV calls these banking institutions sustainability-focused banks.
‘This approach is more than corporate social responsibility or charitable giving,’ commented Dr Marcos Eguiguren, Executive Director, GABV. ‘It is banks embracing a viable model that strategically take a longer term view of profit and prosperity. For sustainability-focused banks, profit is a result of sustaining and growing the real economy and healthy communities, not an end goal.’
In 2014 sustainability-focused banks continue to show that serving the real economy delivers better financial returns than those shown by the largest banks in the world. These sustainability-focused banks address the very real needs of enterprises and individuals within their communities for banking services, especially credit. The success of their banking approach is verified by independent research. There is also increased evidence of the support for sustainability-focused banking from regulation in developing markets such as Peru and Nigeria, and elsewhere. The data is clear: making the business case for sustainability-focused banking compelling. So why aren’t all banks adopting this model? The reasons are many, ranging from: inertia and the power of the status quo; a lack of courage by banking executives and shareholders in changing course; limited awareness of the data that reports like this provide. However, there is growing recognition of the need for a change in how banks behave and operate that over time should result in the growth of sustainability-focused banks within the overall financial ecosystem.
Jasmin Panjeta, Global Alliance for Banking on Values
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