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Ethical / Alternative Banking.

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  • 01-05-2013 10:53pm
    #1
    studiorat
    Closed Accounts Posts: 6,408 ✭✭✭


    Considering the reaction the last question about alternatives to traditional banking got, I thought it might be a bit of craic to put this out here.

    I'm looking to open an internet assessable savings account a la Rabobank etc. Not looking for a large interest payment on the deposit, it would be small enough that I'd be happy enough to forgo interest to a good company. I'd even be interested in contributing to a system of interest free loans such as JAK or a bank like that.

    So can anyone recommend an ethical online account (Irish customer) for a sub- 15,000 deposit that uses ethical investments and (even better) can possibly offer interest free loans to it's other shareholders/customers.

    Simply, I'm looking for an ethical cooperative bank open to Irish online customers.


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    #2
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    No such product/bank exists at the moment. We've nothing like the UK's Co-operative bank here that has a set out ethical policy (and even they don't operate a interest free loan policy. What bank would?)


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    #3
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    Interest free loans? Sharia law banks?
    But I doubt then they'd be giving you imterest on your savings.

    If you want somewhat ethical lending and earn some interest then maybe the credit union. Lending stays in the community and you earn some interest.

    Op what do you mean by ethical banking/lending?


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    #4
    studiorat
    Closed Accounts Posts: 6,408 ✭✭✭studiorat


    I think it's pretty hard to pin down exactly what ethical banking is but I'll make a few suggestions.

    In addition to negative screening (not investing in arms, gambling, etc. ) I would also say banks with reliable corporate governance, banks who don't help the wealthiest people hide money offshore perhaps. (See Faldor for example)
    And banks who use investment strategies which seek both financial return and social good.

    Now many people will tell you that banks are there to make a profit and you should put up and shut up, and they seem pretty happy with that for some reason. But there does seem to be exceptions to the rule. Just not in Ireland it would seem. For example, the government of Norway have a system of investment with their pensions such that they will not partake in "investments which constitute an unacceptable risk that the Fund may contribute to unethical acts or omissions, such as violations of fundamental humanitarian principles, serious violations of human rights, gross corruption or severe environmental damages"

    Regarding the interest free aspect there seems to be quite a few who consider that :
    Charging interest is harmful to a stable economy. Growth cannot continue indefinitely, so the debt-interest based system inherently unsustainable.
    Interest causes unemployment, inflation, and environmental destruction.
    Interest moves money from the poor to the rich and favour's investment in projects which yield high profits only in the short term

    I guess some would see it as naive. But banking is such a necessity, why should we use companies who only seek to profit from that need.


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