The Global Alliance for Banking on Values (GABV) and its network of values-based banks are deeply connected to the pursuit of peace and social justice. By fostering an inclusive environment where all individuals feel they belong and have a stake in the future, these banks help reduce the potential for conflict and violence. 

Peace is often seen as the absence of conflict or violence. However, true peace is much more—it includes the stability and harmony that arise when individuals have equal access to rights, opportunities and the freedom to live and thrive without fear. In a peaceful society, communities can flourish, everyone’s dignity is upheld, voices are heard, and rights are respected. 

Achieving lasting peace means addressing the root causes of conflict, such as poverty, inequality, and discrimination. Social justice encompasses the dismantling of the structural barriers that prevent equal opportunity, including economic disparities, racial discrimination, gender inequality and environmental injustice. It aims to ensure that all individuals, regardless of their background, have the chance to make a positive contribution to wider society and lead fulfilling lives.  

Together, peace and social justice form a virtuous cycle: social justice, through mechanisms like financial inclusion, fosters fairness and equity, which in turn promotes peace. While lasting peace provides the stability necessary for social justice to flourish and for societies to build the conditions for true equity, in all its forms, to take root. 

How can banking promote peace? 

In a world increasingly marred by conflict, the role of financial institutions in perpetuating violence, by financing weapons of war, is well-documented. But banking can be used as a force for good; pooling its vast resources to make widespread changes that help shape a just, peaceful and equitable society. The Global Alliance for Banking on Values (GABV), a network of values-based banks, stands at the forefront of this transformative movement, advocating for finance that serves the greater good. 

The connection between financial systems and global conflict is deeply entrenched, as highlighted in the report ‘Finance for War, Finance for Peace.‘ The research sheds light on the USD 1 trillion funnelled into defense sectors by major financial institutions between 2020 and 2022. By contrast, values-based banks have adopted exclusion policies, deliberately avoiding investments in the production and trade of arms. The Milan Declaration: A Statement for Peace, issued at the conclusion of the GABV’s 2024 Annual Meeting, underscores the need for banks to exclude investments in industries that fuel conflict, particularly the arms trade. Instead, the Declaration calls for investment in building resilient, sustainable and inclusive economies. 

Values-based banking is not only about withdrawing support from harmful industries; it is about actively investing in projects that promote peace, sustainability and social justice. These institutions support local economies, finance critical infrastructure and provide essential services to vulnerable populations. Through their dedication to peace and social equity, they demonstrate the profound impact ethical finance can have in transforming not just the banking industry, but the world at large. 

Building resilience through a client-centric model 

From Africa to Europe and the Middle East, some GABV members operate in countries impacted directly by armed conflict. These values-based banks are especially relevant in conflict zones because they maintain local economic activity and serve vulnerable and often displaced communities. As such, they understand the cost of conflict first hand and offer a powerful example of how banking can be put to work in the service of peace and prosperity.   

Bank of Palestine (BoP), an institution that continues to serve its clients and communities in seemingly impossible circumstances, is an extraordinary example of resilience. Since 1960, BoP has sought to promote sustainable development and financial inclusion in Palestine. It offers a wide range of products and services to cover people’s needs and foster entrepreneurship, women empowerment and sustainable businesses. It is one of the largest national banks in Palestine, serving over 850,000 customers.

While continuing its mission to enhance banking services in Palestine, BoP also works in partnership with local and international organisations to provide meals, food parcels, bottled water, health kits and urgent winter supplies to those affected in Gaza. The bank also offered financial assistance to Gaza Strip patients receiving care in hospitals across the West Bank, Jerusalem and Jordan. Their relief efforts extend to psychological support, education tents and entertainment activities for women and children in shelters.

The First MicroFinance Bank of Afghanistan (FMFB-A) provides financial services to underserved communities, particularly in rural areas. With over 30 million residents, approximately 75 per cent of whom live in rural regions and 36 per cent below the national poverty line, Afghanistan faces acute economic challenges. In 2014, only 10 percent of the population had access to a financial institution, and a mere 3.2 percent were borrowers from commercial banks.

FMFB-A’s success stems from a client-centric approach. It adapts existing policies to meet local needs and continuously updates them in response to changing realities. For instance, following the Taliban’s rise to power in 2021, FMFB-A transitioned to become a Sharia-compliant entity. This strategic decision allowed the bank to continue serving communities through Islamic banking products at a time when humanitarian support was desperately needed. After a year-long hiatus, the bank has resumed financing micro, small and medium-sized enterprises (MSMEs), and its Islamic portfolio is growing in quality.  

Remarkably, FMFB-A’s deposit base has steadily increased over the past year and a half, reaching its highest level in the bank’s history. Despite the challenging environment, FMFB-A has continued to support its clients, reinforced local economies and contributed to social stability and peace in Afghanistan. 

In a different context, Sri Lanka faced massive protests in 2022, driven by an economic crisis that led to widespread government resignations. GABV member SDB Bank witnessed this social unrest first-hand, demonstrating its resilience in challenging times. The Aragalaya protests were sparked by the country’s most severe economic crisis since independence. Although the economy has begun to recover, the effects of this crisis continue to linger. 

Throughout the turmoil, SDB Bank has remained dedicated to supporting disadvantaged customers nationwide. The bank has focused on financing the real economy and promoted financial inclusion, particularly in rural areas and through digitalisation.  

Financial inclusion for displaced communities 

FINCA DRC, in the Democratic Republic of Congo, is pivotal to the recovery of communities devastated by decades of armed conflict. With millions displaced by violence, FINCA DRC provides crucial financial services to internally displaced people (IDPs), offering them the means to rebuild their lives. Many of these IDPs have lost homes and livelihoods, and through microloans and savings programmes, FINCA DRC empowers them to benefit from financial stability and the independence that comes with it. 

Since 2017, when hundreds of thousands of Rohingya refugees fled Myanmar, BRAC Bank and its parent NGO, BRAC, have played a crucial role supporting refugee camps near the border with Bangladesh. Through recovery loans and financial services, BRAC Bank has helped local businesses and individuals in Bangladesh to get back on their feet, fostering peace and social cohesion in the region. 

Addressing racial equity and reconciliation 

Violence and social injustice extend far beyond the battlefield, and are often rooted in historical and structural inequalities. Racial equity, for example, is a pressing issue tied to systemic challenges. The financial sector often plays a significant role in perpetuating economic disparities, particularly for marginalised communities. In response, values-based banks are leading efforts to promote racial justice and reconciliation with First Nations.  

According to Forbes, Black Americans have fewer opportunities to build wealth through mainstream financial markets, exacerbating the racial wealth gap. In the USA, Black-led credit unions such as City First Bank and Southern Bancorp were established to address this gap, raising awareness of unbanked communities and giving them a voice in the financial system.  

Spring Bank, one of New York’s few community banks, has financed Community Voices Heard (CVH), a non-profit organisation advocating for racial, social and economic justice. CVH empowers marginalized New Yorkers, especially those in low-income communities, to address critical issues like housing, healthcare, education and democratic participation. 

In an effort to encourage reflection on reconciliation with First Nations people, Bank Australia launched the First Nations Recognition and Respect Strategy. This initiative focuses on three core action areas: building recognition and respect, supporting First Nations businesses and impact lending to First Nations communities.  

Similarly, in the Global South, GABV members like BancoSol in Bolivia and Banco Codesarrollo in Ecuador support entrepreneurship among Indigenous communities, particularly women, to help them achieve financial independence. 

Banking for social justice 

By making sure that their services are accessible to all, including and often especially marginalised and minority communities, values-based banks actively contribute to a more equal society. This can mean making it easier for clients to choose their preferred gender identity on credit cards, translating the website and online banking services into different languages for migrants and refugees, or making homeownership more accessible to individuals with disabilities. 

G&C Mutual Bank, in Australia, has a special financial hardship service with various solutions to ease financial stress, understanding that unexpected life events such as unemployment, illness, the breakdown of a relationship, or natural disasters can result in financial stress.

An effective strategy for values-based banks to enhance their contributions to peace and social justice is to allocate capital to support organisations that protect vulnerable populations and minorities.

Amalgamated Bank, in the USA, finances organisations addressing the financial impacts of incarceration on families and communities, such as Common Justice. This programme is the first of its kind in the USA to address violent crimes through strategies that hold individuals accountable, break cycles of violence, and ensure safety and healing for survivors. Common Justice develops and advances restorative justice solutions to violence, focusing on transforming the lives of those harmed while fostering racial equity without relying on incarceration.

Banca Etica, an Italian cooperative bank deeply rooted in the principles of ethical finance, is actively engaged in work that has transformed the lives of some of society’s most marginalised people. One example is a collaboration with “Regenerazioni Non-profits”, in Palermo, together with the Malaspina juvenile prison. Through this partnership, Banca Etica helps provide detained minors with meaningful employment opportunities, focusing on their rehabilitation and social reintegration. The project began with the establishment of Cotti in Fragranza, a brand that produces artisanal baked goods within the prison. The initiative equips young people with valuable work skills and offers them a sense of purpose and a pathway to a brighter future.

Discrimination against LGBTQ+ individuals remains a pervasive issue worldwide, often manifesting in violence, exclusion, and systemic inequalities. Many LGBTQ+ people face hostility in their home countries, leading them to flee persecution, harassment, or even life-threatening situations. Upon seeking refuge in new environments, they frequently encounter additional challenges, including limited access to essential services, social isolation and ongoing discrimination, making it difficult to rebuild their lives. 

Micro Rainbow, in the UK, addresses these needs by providing vital support to LGBTQ+ refugees and asylum seekers. The charity offers a variety of services, including employability workshops, safe housing, and peer support groups, which foster a sense of community and belonging. Through a Charity Bank loan and other strategic partnerships, Micro Rainbow has successfully provided safe homes for approximately 300 people, ensuring they have a secure foundation to thrive.

Altruistic practices for social inclusion

In Germany, SozialBank’s commitment to social justice is deeply embedded in its operations, particularly through its specialised financial services for the social and health sectors. It focuses exclusively on non-profit organisations and institutions that serve vulnerable populations.  

A prime example is its Gemeinwohl Invest service, a digital asset management platform designed specifically for NGOs and charities. This initiative helps these organisations optimise their investments while aligning them with sustainable and socially responsible priorities. Another example: SozialBank also has a long-standing partnership with Aktion Mensch, Germany’s largest social lottery, which allows it to support numerous projects that benefit people with disabilities.

MagNet Bank is a small, values-driven financial institution in Hungary that operates on principles that prioritise social responsibility and community involvement. One of its initiatives is the Supportive Bank Card, which allows customers to donate a portion of the bank’s commission from every purchase to a nonprofit organisation of their choice.  Through its Community Donation Programme (CDP), MagNet also empowers customers to allocate part of the bank’s taxable income to NGOs. Since 2010, the CDP has distributed over HUF 420 million (USD 1 million) to the NGO sector.  

These are only a few examples of social justice challenges and how values-based banks are addressing them from the financial system. Through advocacy work, direct lending, tailored products and services and socially responsible practices, values-based banks address and help rectify historical injustices perpetuated by traditional banking practices, such as discriminatory lending.