The role of social banking

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  • - Können alle Englisch?
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  • The role of social banking

    1. 1. 03.10.11 www.social-banking.org The role of social banking Katharina Beck, 02 October 2011 Internazionale a Ferrara, Italy
    2. 2. 03.10.11 www.social-banking.org The Institute for Social Banking <ul><li>Summer School on Social Banking </li></ul><ul><li>Certificate in Social Banking </li></ul><ul><li>Introduction and Expert Seminars </li></ul><ul><li>Knowledge generation </li></ul>
    3. 3. Different faces of banking 03.10.11 www.social-banking.org Pictures: http://hookz.killing4space.de/?p=903, Zukunftsstiftung Landwirtschaft
    4. 4. 03.10.11 www.social-banking.org &quot;If the people knew tonight, exactly how the monetary and banking system worked, there would be a revolution before tomorrow morning.“ Abraham Lincoln Banks are „kind of“ relevant...
    5. 5. 03.10.11 www.social-banking.org Demonstrations on Brooklyn Bridge, „Occupy wall street“-movement, 1st October 2011, New York. Picture taken from www.tagesschau.de
    6. 6. 03.10.11 www.social-banking.org Europe
    7. 7. 03.10.11 www.social-banking.org Values: Trasparency, Participation, People,... &quot;The highest interest is for all.“ &quot;Banking for a Sustainable Future“ &quot;Money is there for people!“ &quot;Consultation for giving. Funding and support for charitable institutions.“ &quot;Managing money consciously“ &quot;A different bank for people who want a different world.“ &quot;Today's bank for a better tomorrow.“ &quot;Committed to social justice within a sustainable economy“ &quot;Our values: ethics, transparency, solidarity“ „ Supporting socially responsible places of residence and work“ Social-ecological
    8. 8. <ul><li>Bank </li></ul><ul><li>Intermediary </li></ul><ul><li>Allocates money </li></ul><ul><li>Maturity transformation </li></ul><ul><li>Risk transformation </li></ul><ul><li>Information </li></ul>03.10.11 www.social-banking.org Banks as „simple“ intermediaries Those who have money Those who need money / real economy asset loans Basis: TRUST 2. Social Banking
    9. 9. A „normal“ service 03.10.11 www.social-banking.org Picture: Katharina Beck
    10. 10. 03.10.11 www.social-banking.org Understanding money as a tool Different qualities of money
    11. 11. Publication of financed projects, e.g. Triodos 03.10.11 www.social-banking.org/summer-school
    12. 12. Examples for criteria 03.10.11 www.social-banking.org
    13. 13. 03.10.11 www.social-banking.org Social Banking
    14. 14. 03.10.11 www.social-banking.org Multi-dimensional core business Combining several dimensions.
    15. 15. Global Alliance for Banking on Values 03.10.11 www.social-banking.org www.gabv.org
    16. 16. 03.10.11 www.social-banking.org Banking with the poor Picture: Oikocredit Social Performance Report 2010, p. 3. Micro-finance
    17. 17. GABV: Different approaches
    18. 18. 03.10.11 www.social-banking.org 13 GABV Banks: world Balance Sheet (2009/10) in Mio. US $ No. of Customers ABS 898 24000 Banca Etica 973 40000 BancoSol 495 390000 BRAC 1366 898000 Cultura Bank 66 4200 GLS Bank 2000 100000 Integral 75 42000 Merkur 290 16000 Mibanco 1586 500000 New Resource Bank 159 2000 OnePacificCoast Bank 99 800000 Triodos Bank 4311 500000 Vancity 13640 750000 Xac Bank 223 225000 TOTAL 26.181 4.251.200
    19. 19. Performance of balance sheets: Europe 03.10.11 www.social-banking.org
    20. 20. Comparing some monetary numbers... 03.10.11 www.social-banking.org „ It is unclear how much money exists in the world .“ (P. Dembinski) Social banks in Europe: Balance sheets (2009/10) 9 Bn. € GABV banks: Balance sheets (2009/10) 19 Bn. € National Budget of Italy (2009) 785 Bn. € GDP Italy (2010) 1‘773 Bn. € National Debt Italy (2011) 1‘890 Bn. € BNP Paribas: Balance sheet (2010) 2‘960 Bn. € SRI (Europe, incl. broad SRI, 2010) 5‘000 Bn. € GDP worldwide (2010) 60‘000 Bn. € „ Value“ of derivatives worldwide (BIS; 2008) 600‘000 Bn. €
    21. 21. People seeking „sense“ 03.10.11 www.social-banking.org Pictures: www.brandeins.de and www.yogamob.org
    22. 22. Social banks‘ uniqueness and role 03.10.11 www.social-banking.org <ul><li>Role models / reference (long-time experience, focus on real economy and the human being, „True“ eco-social goals, participation, transparency) </li></ul><ul><li>Thought leadership (focus on relation and not transaction, proposals for regulation) </li></ul><ul><li>Values and focus on the human being („dare to be different“) </li></ul>
    23. 23. Challenges for Social Banks (Europe) <ul><li>Inconsistent customer demands (security und return vs transparency and responsibility) </li></ul><ul><li>Conversion rate to loans decreases (Are there enough „investible“ eco-social projects in the „real economy“?) </li></ul><ul><li>Finding the „right“ new co-workers (Values and dilemma competence) </li></ul><ul><li>Low interest rates (investment banking pays off better than conventional banking) </li></ul><ul><li>Basel III and regulation (e.g. for GLS Bank) </li></ul><ul><li>Maintaining uniqueness while larger banks adopt sustainability strategies with much larger marketing budgets </li></ul>03.10.11 www.social-banking.org
    24. 24. 03.10.11 www.social-banking.org Money in the digital world? http://www.youtube.com/watch?v=ekF8Zsv5F3w The future of money? New currencies? Giving and donations Social Media
    25. 25. Financial sector: „de-humanised“? 03.10.11 www.social-banking.org <ul><li>Over 500.000 structured financial products (not easy to understand) </li></ul><ul><li>Much higher „value“ in derivatives than in GDP („unreal“?) </li></ul><ul><li>Computerisation / Digitalisation („the human element“?) </li></ul><ul><li>„ Transactionitis“ (vs relations) </li></ul><ul><li>Speed </li></ul><ul><li>„ Traders more destructive than psychopaths“ (Study of the University of St. Gallen, 2011) </li></ul>
    26. 26. 03.10.11 www.social-banking.org Who is in charge? Change on a system level Change on an organisational level Change on an individual level Global markets – „ local“ regulation. Pictures: taken from google pictures.
    27. 27. „ Social Banking“ proposals for solutions 03.10.11 www.social-banking.org <ul><li>Separation of retail and investment baking </li></ul><ul><li>Financial transaction tax </li></ul><ul><li>Closing of tax havens </li></ul><ul><li>Only allow what we can understand (simple and transparent financial „products“). </li></ul><ul><li>Make OTC public and transparent. </li></ul><ul><li>Rating agencies shall be paid by financial services tax. </li></ul><ul><li>Increase financial literature. </li></ul><ul><li>Change incentive structures. </li></ul><ul><li>=> Back to „ boring “ (Max Otte), human banking? </li></ul>
    28. 28. Katharina Beck Director | Institute for Social Banking Christstr. 9 44789 Bochum [email_address] 0234 / 60 60 01 32 www.social-banking.org 03.10.11 www.social-banking.org Thank you! Picture: Katharina Beck. The pictures belong to the Institute for Social Banking if not otherwise indicated
    29. 29. Social Banks (in the North) <ul><li>Explicit self-perception as intermediary to depositors and borrowers </li></ul><ul><li>Main goal: contribution to further the common good </li></ul><ul><li>No profit maximisation and perverted incentive / bonus structures </li></ul><ul><li>No speculation </li></ul><ul><li>Needs in the real economy / society </li></ul><ul><li>Ownership structures that help prevent short-termism </li></ul><ul><li>Triple bottom line / positive and negative criteria </li></ul><ul><li>Transparency (e.g. publication of loans) </li></ul><ul><li>Reflection of motives (why?), actions (what?) and approaches (how?) </li></ul>03.10.11 www.social-banking.org

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