Tue, Jun 19, 2018
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. Lyxor recommends stockpicking strategies, L/S equity hedge funds well equipped for turbulent markets[more]

    Matthias Knab, Opalesque: Market developments in May saw some trend reversals across the fixed income and commodity space. On the one hand, the unfolding of the Italian political crisis coincided with a rebound of U.S. Treasuries during the second half of May. On the other hand, the rising likeli

  2. North America - George Soros: 'Everything that could go wrong has gone wrong'[more]

    From Marketwatch.com: George Soros, tell us how you really feel. 'Everything that could go wrong has gone wrong. [Trump] is willing to destroy the world.' The 87-year-old billionaire clearly isn't shy about expressing his generally liberal views and distaste for Trump's "America First" platform,

  3. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  4. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  5. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a