Lima Declaration (2011)

Preamble

The Global Alliance for Banking on Values (GABV) is an independent network of banks using finance to deliver sustainable development for unserved people, communities and the environment.

Our members provide banking services with business models based on the Principles of Values-based Banking.

Our members use money as a tool for enhancing the quality of life through human, social, cultural and environmental development. They take responsibility for the long-term impact of our business activities on our interdependent environment and communities and deliver their products and services with transparency, trust, clarity, and inclusiveness.

The GABV agrees on the following points in the ongoing discussions about regulatory changes impacting all financial institutions:

● Values-based banking provides critical services for developing sustainable communities. It also responds to environmental challenges by creating a bridge between a sustainable economy and human dignity on one side, and a stable and resilient financial system on the other.

● Changes to the regulatory framework represent an important step if they prevent potential damage to the financial system resulting from activities of banks of systemic importance, especially activities that do not support the real economy.

● A strong capital base for banks is crucial to creating a resilient banking system that supports the real economy.

● However, to date the response of regulators and governments to the financial crisis has not sufficiently recognised the importance of value-based banking as an alternative and stable banking business model.

● Smaller banks delivering sustainable development in local communities should not be adversely impacted by the unintended consequences of regulations intended to address issues relating to banks of systemic importance.

● Furthermore, financial institutions that serve the real economy in building and developing sustainable communities should be recognized and encouraged through appropriate regulation.