© f r a n k f u r t – s c h o o l. d e responsible banking © f r a n k f u r t – s c h o o l....
TRANSCRIPT
© F r a n k f u r t – S c h o o l . d e
Responsible Banking
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Appropriateness Providing to clients the services they need
Transparency Clear definitions of terms and business behaviour
Principles of responsible banking
Accountability Instil personal responsibility and institutional reliability
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Legal and market environment
Overall consumer protection
Fair contract rulesMinimum information requirements for clientsUniform disclosure standardsClient complaint system - Ombudsman
Regulatory authority for financial sector
Deposit insurance systemTransparency of indebtedness levels: credit bureau Enforcement & control of compliance
Informed and active press and media
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Advertisements from selected financial institutions
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Responsible banking has the following dimensions
• emphasis on financial literacy • long-term relations
Products
Responsible banking
Lending Methodology
Delivery Channels
Saving Methodology
Customer Relationship
• savings, loans & insurance • transparent terms & conditions• fair & transparent contracts
• close to the customer: physical & social
• instil thriftiness • instil regular savings pattern• building trust
• emphasis on repayment capacity • appropriate repayment plan • exclusion list
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Doing good… and increasing profits
Responsible banking is part of quality management
Helps increasing profits
Satisfied customersundertake repeated transactionsuse multiple financial serviceshave long-term banking relationsattract new clients through mouth-to-mouth progaganda
Financially literate customers can communicate their financial needs more easilytake better–informed decisions and often show higher levels of accountability
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Staff:
• Committed and ethically motivated staff• Code of conduct• Staff training emphasizes responsibility dimension
Management:
• Product lines and financial methodology• Performance and incentive system• Monitoring system• Sanctions of unethical behaviour, e.g. fraud
Owners:
• Social values as part of the investment proposition• Long-term commitment
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Thank you for your attention!
Dr. Karin Derflinger
Sonnemannstrasse 9-11
D-60314 Frankfurt am Main,
Telephone +49-69 154008-612
Fax +49-69 154008-670