The Global Alliance for Banking on Values believes in developing a positive, viable alternative to the current banking system as a way to fund the change to a more sustainable and fair economic and social system. A key and necessary companion, we dare to say, in this journey NESI Forum has just started.
In 2016, sustainable-focused banks’ lending level nearly doubled compared to the traditional financial institutions. Similar figures applied to deposits, and the former’s total income grew 7.6% for the period going from 2011 to 2015, vs. the 0.5% increase of the latter. There must be a reason why every year, more and more people and businesses choose responsible banking.
The Global Alliance for Banking on Values (GABV) is the international network of banking leaders committed to advancing positive change in the banking sector. Their collective goal is to change the banking system so that it is more transparent, serves the real economy (by providing loans and services to sustainable projects, individuals and entrepreneurs and avoiding investing money in the pure financial and speculative economy), and supports economic, social and environmental sustainability.
“Money is not neutral and banks pump money into the economy. Choosing the financial institution you are banking with is relevant because you also choose the intention of this money”, explains Dr. Marcos Eguiguren, GABV Executive Director. “Values-based financial institutions have a clear intention in the use of the depositors’ money. They are transparent and they show where the money of the depositors is going. They only invest in the real economy and only in those projects that add prosperity to the communities they serve and / or support projects that are positive for the environment.”
Furthermore, he explains, lending to the real economy delivers better financial returns when compared with the largest banks in the world. “Through our focus on the real economy and sustainability, our strong capital positions and our steady financial returns, we have demonstrated that the values-based banking model provides a viable and a much needed alternative, adding strength to a diverse financial ecosystem.”
The GABV founded in 2009 and as of 31 December 2016 has 39 members (banks, banking cooperatives and credit unions, microfinance institutions and community development banks) from the 5 continents. They collectively serve more than 24 million customers, hold up to $110 billion USD of combined assets under management and are supported by more than 42,000 co-workers. They all want to ensure that banking is a healthy and productive system of society and develop a positive, viable alternative to the current banking system. ‘But how?’, you may wonder.
“We have demonstrated that the values-based banking model provides a viable and a much needed alternative, adding strength to a diverse financial ecosystem.”
The GABV provides a space for collaboration for values-based banking leaders. It also provides learning and development opportunities for senior executives, experts and banking professionals at member banks through its Communities of Practice (CofP). And, finally, it takes an active role in the debate about how to build a sustainable financial future by managing joint projects amongst members, experts and external partners, like NESI Forum.
“The participation of the GABV in the debate NESI is creating makes more sense than ever, since the need for a more sustainable, fair and inclusive economy is a must in our times. Banking and finance are at the core of the economic system, pumping money into the economy and intermediating between the people who save money and the ones who need this money to invest in the growth of the real economy, and to do it from a sustainable perspective. The role of banking must be addressed in depth in forums like NESI,” continued Dr. Eguiguren.
In 2017, the GABV will focus on introducing new services for the Members, expanding their work in Human Development, publishing Scorecard, and continue working on advocacy and promotion of banking on values on a global level.
If you want to find out more about what responsible and values-based banking means, discover the alternatives and meet its key global actors, then you should join us in Málaga this spring. You will not regret it!
To find out more & connect with the Global Alliance for Banking on Values:
WEBSITE URL http://www.gabv.org/
FB: /bankingonvalues
TW: @BankingOnValues
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