According to reports, the Cooperative for Ethical Finance has filled all the necessary documents to the Croatian National Bank in order to start the procedures for the foundation of the first ethical bank in Croatia.

The nature of the Ethical Banking will be rather different from the commercial banks. Its clients will have a continuous support and its members will be provided the best possible terms of banking.

Εthical banks are quite famous in Europe. They are having 21 billion Euros assets and approximately 528,000 clients. However, the "ethical banking" project is rather new to Croatia, but these banks have been working for quite some time in Europe.

FEBEA - European Federation of Εthical and Alternative Banks, which was founded in 2001 in Brussels, consists of more than 20 members, such as banks and foundations. Apparently there are specific differences between them, they are all sharing a joint transparency as concerns the business and their primary goal is the benefit of the society through their activities.

Such banks, ethical banks, aim to improve the management of the resources of the community.To be more precise, first of all is the people in the community to have quality of life. There are several criteria that an ethical bank must satisfy. The greater of them are transparency, solidarity, involving customers and employees in the management of the bank, reinvesting profits once again in the community. Moreover, other criteria are a more adaptable disposition towards guarantees to loans and focusing on financing projects that belong to real economy.

Given all the above, it is important to mention that ethical banks have a tendency of knowing their clients-members and therefore their needs, so they are building a long-term partnership in the end and parallel the bank comes to take lower exposure to market risks.


Petros Stathis