Sat, Jul 4, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

GABV study reveals significant differences between the financial performance of banks

Thursday, October 10, 2013
Opalesque Industry Update - An updated study comparing key financial information about the world’s biggest banks, or Global Systemically Important Financial Institutions (GSIFIs), and a group of leading sustainable banks has shown significant differences.

The results show:

Sustainable banks lend almost twice as much of their assets on their balance sheet, when compared with the big banks (75.9% compared to 40.1%, from 2003 to 2012) Sustainable banks rely on customer deposits to a much greater degree to fund their balance sheets (73.1% to 42.9%)

Sustainable banks maintained stronger capital positions, relative to their larger contemporary banks, especially when measured by equity/total assets (7.2% to 5.5%) Speaking at ‘A Better Future for Finance’, a special event at Georgetown University, Global Alliance for Banking on Values (GABV) Chair, Peter Blom, said the results show that sustainable banks lend more proportionally than the ‘too big to fail’ banks, benefit from funding that’s primarily drawn from customer deposits, and have a stronger capital base.

“We cannot afford to ignore the increasingly compelling business case for sustainable banking. It’s now clear that over the long-term values-based banks, that put people and the planet they depend on first, have proved to be more robust and resilient than the world’s biggest banks.

“The results matter because we need a stronger banking system to support a more resilient, modern economy. And we need it soon, so finance can play its role in helping to meet urgent and converging social, environmental and economic challenges. If we take the mounting evidence seriously, we have an unprecedented opportunity to build a more diverse, transparent and sustainable banking system in the interests of us all.”

The research was extended to include a comparison of the European banking market, with similar conclusions to the overall report. Sustainable banks in Europe showed higher levels of lending to the real economy, compared to GSIFIs, stronger levels of equity capital, and better returns on assets.

Leading CEOs from the Global Alliance of Banking on Values (GABV), including Tamara Vrooman, President and CEO of Canada’s largest community credit union, David Reiling, CEO of Minnesota’s Sunrise Banks, and John Fullerton, Founder and Director of the Capital Institute, a collaborative working to transform finance to serve a fairer more sustainable economic system, used the Georgetown University event to describe what a banking landscape made up of banks that balance people, planet and prosperity would look like.

The GABV is an independent and growing network of 25 of the world’s pioneering sustainable banks, from Asia, Africa, North and South America, Europe and Australia. The network’s members have combined assets of over $70 billion, serving millions of customers around the world.

press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner