SlideShare a Scribd company logo
Race & Case – Daniels College of Business 	

Team:Aakash, Camila,Wei, Jiaxu, Luke
Our Mission: to do the right thing for
“But then again, nobody said that
values-based banking was going to
be easy. Inser ting a moral
conscience into banking was well
worth the challenge.” 	

	

Ken LaRoe
Ethical Framework	

Identify	

Investigate	

Innovate	

Isolate	

Implement
Implications	

Social	

Economical	

Environmental
Resistance to Financial Crisis	

140	

 157	

92	

 52	

-855	

-252	

222	

 247	

2009	

 2010	

 2011	

 2012	

Bank failure	

 Net Profit/Loss (000)
Ratio Analysis-Comparison to 5 failed Banks	

>10% High Low & Stable
CAR	

Provision
for Loan
Loss	

Loan-to-
Deposit
How they get Deposit & Capital	

Communication
Reputation
Green Mission
Financial
Basis
Opportunity
Strong Deposit Support	

	

Healthy Loans	

	

Benefit
Reliable Credibility Establish	

Healthy Benefit Trust
Portfolio
ROI Scenario: Loan Granted	

Short Term!
High ROI!
Long Term!
Low/Negative ROI 	
  
ROI Scenario: Loan Rejected	

Short Term!
Low ROI!
Long Term!
Low/High ROI 	
  
ROI Scenario: Sustainable Loan Granted	

Is the loan for a green or sustainable practice? 	

Short Term!
High ROI!
Long Term!
Low/High ROI 	
  
ROI Scenarios	

0	

1	

2	

3	

4	

5	

6	

7	

For +	

 For -	

 For Proj	

 Against +	

 Against -	

 Against Proj	

 For(alt) +	

 For(alt) -	

 For(alt) Proj	

QualitativeROIQuotient(1-3perType)	

+ Favorable Market, - Unfavorable Market, Proj: Projected Market	

ShortTerm ROI	

 LongTerm ROI
Sustainable Qualitative Quotient	

S.Q.Q. = 0.03 x E + 0.07 x J +
0.15 x B + 0.25 x N + 0.50 x S.A.	

Line of Sustainable Potency 	
  
Sustainable Qualitative Quotient	

7.66	

7.2	

7.6	

8.27	

4.6	

7.6	

4.5	

8.11	

5.65	

0	

1	

2	

3	

4	

5	

6	

7	

8	

9	

Kenneth E.
LaRoe	

Scott M.Ales	

 Shannon
McLin Carlyle	

Joel C. Hunter	

 C. Michael
LaRoe	

Paul Rountree	

 John Schmid	

 Randall E.
Strode	

David Weyn	

S.Q.Q.	

Directors	

7.5
Loan Granting Scenarios	

Green
Construction	

Recycling
Manufacturing Process	

Contractual
Investment
Best LongTerm Solution	

Green Loan: For!
	

Regular Loan: Against!
Questions?
Thank you

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