Not only ethically-oriented banks, organize events on issues of sustainability in the financial sector – but so far, the green financial products are only a niche business.
“Green Finance” is a word that is also the traditional financial economy is meanwhile trying to score points. However, until your business has converted to a model of sustainable economies and the appropriate financial investment products, is likely to take some time. So sober it is analyzed in Frankfurt am Main at the start of the “Fair Finance Week” the prospects for a turnaround in the financial system.
Now for the fifth Time experts from politics, business , science and civil society to discuss how the banking system can be made more sustainable and what is the responsibility of the society. Engine for political change in this direction, the EU is now the Commission in Brussels. In the early summer, she has published the first of four Fair Finance policy. Currently it is discussed whether such “brown”, non-sustainable investments should be backed by more equity capital, and thus for the banks less attractive as “green” plants. In this context, sustainability covers not only climate-friendly investment products, but also the protection of human rights and the fight against corruption.
Sustainability as a concept of life
“Sustainability is a concept of life that draws the entire business model with all its aspects,” said Rainer Lenz, Chairman of the Board of the non-governmental organization “Finance Watch” at the opening event of the Fair Finance Week. “Because it is not just about CO2, it is also a question of wage differences, to inequality.”
But above all, the stability of the financial system, said Sven Giegold, a financial expert, of the Alliance 90/The Greens in the European Parliament. There is, as in the Ecosystem and in the financial system tipping points. Not sustainable products quickly lose its value. For this, the banks have to make provisions in a timely manner. Otherwise, these risks could be too great and the financial system destabilizing.
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The most dangerous banks in the worldJP Morgan
The US investment Bank JP Morgan, the FSB, the for the stability of the global financial system, the most important, and most dangerous of the Institute. In the latest list of 30 global systemically important banks (G-SIBS) is JP Morgan is the only institution in the top category. The U.S. Bank to hold 2.5 percentage points more capital than a ‘normal’ Bank.
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The most dangerous banks in the worldCitigroup
So far as a similar-level US Bank Citigroup is to be entered only in the second category, such as the Financial stability Board FSB announced on Tuesday in Basel. In this category, a Bank needs a capital charge of two per cent.
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The most dangerous banks in the worldDeutsche Bank
Deutsche Bank, Bank of America and HSBC are in a row with Citigroup. The FSB rating of the banks not only on their size, but also according to the risk inherent in their transactions, and how they networked in the financial system. Because this is crucial for what would be the consequences of your wrong location for the entire industry and beyond.
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The most dangerous banks in the worldBNP Paribas
The French Bank BNP Paribas was downgraded from the second to the third category of the global systemically important banks. The “G-SIB”list is updated once per year
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The most dangerous banks in the worldICBC
In the third category, three Chinese houses, two more than a year ago. To the ICBC Bank of China and China Construction Bank came as well. Large-they have always been, they are now, but more with the international financial system.
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The most dangerous banks in the worldCredit Suisse
In the past year, the Credit Suisse for the global financial system has become less important. The Bank will only be classified in the category with the lowest Capital charges. The Credit Suisse must hold only one percentage point more capital than a normal Bank, half a percentage point less than in the past.
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The most dangerous banks in the worldUBS
In the same group of Credit Suisse is sorted-rival UBS. New on the list of G-SIBs, the Royal Bank of Canada, the French Groupe BPCE has been deleted from your.
Own Standards for sustainable investments
Some of the banks were doing, in the meantime, progress, said Kristina Jeromin, which is the German stock exchange for sustainability responsible. As an example, you called the French BNP that is not set in your house, for example, for corporate bonds, their own Standards, because there is for sustainable investments. The performance of these products make them transparent: “transparency is everything starts,” says Jeromin. The was important for the gradual Transformation of a business model. Many German banks, but still have a long way to go, even in the product offer.
The sustainability expert encouraged the consumers to relevant offers. Often, the client advisors were not trained sufficiently, and claimed even that sustainable Investing can bring less return than the conventional one. The opposite was proven in the meantime. However, banks made progress in this area, should not be trusted blindly, warned Giegold. Just look at the big issues of the financial system, in the control of transnational companies, need to binding social, ecological, and also in part simply to provide public benefit Standards: “but every day, democratic Afghanistan.”
More than just climate protection
Especially the German policy brake, more likely, would like to sustainability is to narrow down to the concept of climate protection. Therefore, Giegold must act at the European level. From Paris, for instance, it will give a tailwind for appropriate initiatives.
Also, the Argument of size come into play: Only Europe was big enough in international comparison, an ethical orientation, and social, environmental objectives prevail. Common European Standards are, however, always a compromise, warned the green financial expert prior to high-flying hopes. “Deep green” content, you should not expect.
In order to make progress, were the ethically-oriented banks as pioneers in sustainable Banking is very important. Giegold hopes for your support, you should continue to “be a thorn in the flesh of the financial industry, in order to gradually enforce higher Standards, too broad”.