Ethical banking
Ethical bank is a social, civic, alternative, or, sustainable bank that is concerned with the use of it's investments and loans for the society. The first word in Ethical banking is transparency of it's banking issues. This transparency in it's banking code of ethics involve openness, communication and outright accountability.
The biggest thing about Ethical banking is in the social and environmental aims of all the projects financed by them. Another feature worth mentioning with the Ethical issue in banking is that some of these Ethical banks finance projects having social and environmental implication that are specialized in the form of microcredits.
Microcredit, an important feature well rehearsed along with the Banking code of ethics, is actually extension of small loans. They are mainly extended by Ethical banks to the unemployed, to sinking entrepreneurs and to other non bankable clientиle. The system of microcredit frequent with ethics in banking was innovated in the developing countries worldwide and bank ethics coin it as one of the most significant financial innovations. The system of microcredit, practiced in Ethical banking is fast gaining importance and credibility in all the nooks and niches of the finance industries along the mainstream.
An ethical bank goes by guidelines according to the banking code of ethics and this result in low profit margin set by them as compared to the world banking standards. Due to the low profit margin and narrower benefits met with in trade, the issue of banking and ethics are balanced in Ethical banking through fewer number of offices and outlets. Thus balancing the ethical issues in banking these ethical banks rely much on the internet and on phone based client services. Apart from that the normal postal service interconnected globally also help them to reach the potential targets dealing with banking and ethics.
Smile, which is a branch of an UK based cooperative bank, rather working along ethics in banking deals they perform, functions by such low set investment schemes donot work through offices and outlets but depend on internet for their services. Microplace was established in the year 2006, works as a broker dealer being registered with the United States Securities and Exchange Commission, the SEC. It is also a member of the FINRA, or, the Financial Industry Regulatory Authority, that deals with the aspects of Ethical banking and similar compromising lines of trade having social implications. These investment institutions enable small investors to invest in the microfinance industry.
The microfinancing done along the lines of Banking ethics by such compromising banks include financial services, such as,
Microcredit and similar credit extending programs for the poor and unemployed.
Microsavings for the non bankable crowd to help them survive the market tides.
Microinsurance schemes for the poor people and the aged persons.
Microfinancial management helping the poor and the non bankable people to accumulate reasonable sums of money and reduce the potential risks they generally face.
Green Ethical banking is there which is about the ethical banking projects related to the Green house awareness and the issue of Global Warming.