recovery towards what? finance, justice, suistanaibility alternative banking models: banca etica...
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Recovery towards what?Finance, justice, suistanaibility
Alternative Banking models: Banca Etica
Mauro Ferrari e Dario Brollo
Area socio culturale di Banca Etica
Banca Etica’ s history (Italy)
80’s: first experiences of ethical finance in Italy with financial cooperative associations (transparency and mutuality);
1995: 22 non profit organisations founded “Cooperativa Verso la Banca Etica” which is looking for shareholder of the future bank (target 7mio Euro);
1999: Banca Etica opened its first branch office in Padova 2000: CTM-Mag becomes Etimos, a microcredit consortium 2003: Etica sgr, ethical funds, opened 2004: First Terra Futura annual eco-social fair, today
90.000 visitors 600 exhibitors 2009: Banca Etica has more than 30.000 members (including
4.500 corporate body) 13 branches in all Italy, 700 Mio. Euro savings
Cultural activityMicrocredit
Ethical funds
BANCA ETICA’S SYSTEM
Terra Futurasocial eco-fair
28-30 may ‘10 Firenze
Valori (monthly Newsp)
Zoes.itSocial networking for responsible economy
Shareholder activismOn ENI & ENEL co.
ethically oriented finance is aware of non economic consequences of economic actions;
access to finance, in all its forms, is a human right;
efficiency and soberness are components of ethical responsibility;
profit produced by the ownership and exchange of money must come from activities oriented towards common well-being and shall have to be equally distributed among all subjects which contribute to its realisation;
PRINCIPLES OF ETHICAL FINANCE
maximum transparency of all operations is one of the main conditions of all ethical finance activities;
the active involvement of shareholders and savers in the company's decision making process must be encouraged;
each organisation which accepts and adheres to the principles of ethical finance undertakes to inspire its entire activity to such principles.
PRINCIPLES OF ETHICAL FINANCE
Institutional Bodies
shareholders’ general assembly
board of directors executive committee board of auditors committee of guarantors direction operational office branch offices
Associative structure:
64 territorial organisation of shareholders
Ethical Committee
Banca Etica structure
Alternative banking Models
Looking for:savers, investors, shareholders, entrepreneurs,
managers and financial intermediaries
to develop values driven cultures that reflect their acknowledged responsibility for the social and
environmental impact of their activities.
Offer choice of conscientious and transparent savings and investment
Banking business: professional, innovative and coherent to principles
Internal shareholder democracy and participation Participation in the public debate on local and global finance
regulation Double evaluation of loans: capacity of redemption of the
loan + impact on the environment and the society Collaborative initiatives, joint ventures and partnerships with
other banks (also not alternative ones)
Alternative Models: institution
Alternative Models:
what to do or to finance
Microfinance: individuals and MFI Social entrepreneurs running green and social
businesses No-profit organizations Low impact lifestyles patterns Social Cooperatives (welfare, production,
services) Mutualism and local governments Ethical funds (best in class approach) Shareholder activism / capitalism democracy
Alternative Models
Coalition about
alternative financial experience:
www.inease.org
www.febea.org
Global alliance
(for banking on values)
Some figures of Global
alliance
combined assets exceeding USD 10 billion> 7 million customers they employ more than 45,000 people.combined equity exceeding USD 940 million.average growth rates of 24%generate a decent and stable return on
equity, both in financial terms and in added social value
they have shown remarkable resistance in the face of the financial crisis.
Are those figures relevant?
2008 data (euro)
Bank savings in Italy 1 613 000 000 000
Banc etica’s savings 700 000 000
This means about 0,043 % of the market!!!
But….
Are those figures relevant?
A recent survay by demos (www.demos.it,
ott09) shows that:Transparency is the most popular
request to banksBanca Etica is known and appreciate
by about 10% of Italian populationPeople have a very poor confidence
in traditional banking
ConclusionsPositive There are many possibilities of alternative banking Growing sector, Growing interest, business
opportunitiesObstacles: Unfair competition, “fake” alternative approach Inefficiency due to little figures Cultural behavior of Not-responsible economy Financial rules thought for big “traditional” players
THE NET OF BANCA ETICA
13 Branches and 2 more opening;
27 Financial Promoters;
64 Local Shareholders Groups;
201 employees and co-workers
Update January 2009
SERVICES
bank accounts, for individuals and organisations, and further services such as direct debit cards, credit cards, home banking, credit transfer in Italy and abroad, bancalight (banking operations management from the mobile phone), internet banking;
certificates of deposit; saving books; debentures, bonds; investment funds Responsible Values of Etica Sgr; foreign services: bank accounts and related services;
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