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Prospective Innovation at Ethical Banking and Finance
The ethical banks in Europe during the crisis: information transparency and placement of assets
Financial Economics II. ECRI Ethics in Finance & Governance - UNIVERSITY OF THE BASQUE COUNTRY (SPAIN) AND UNIVERSITY OF HUDDERSFIELD (UK)
RETOLAZA JOSE LUIS
Financial Economics II. IEAE - UNIVERSITY OF THE BASQUE COUNTRY
FINANCIAL ECONOMICS II - UNIVERSITY OF THE BASQUE COUNTRY
The financial crisis has increased the importance of the transparency in banking because of the relevance to invest the money of savers and the effect of a risky investment. There are some banks, called Ethical Banks that show in a transparent way the collocation of their money. Then, this research analyses the principal differences between ethical banking and the rest of funding organization: the information transparency and collocation of asset comparing before and during the crisis (2007 vs. 2011 data) and using the European Ethical Banks data. There is an index, RAI (Radical Affinity Index) that integrates this information; therefore, we have used a part of the index, the RAI alpha to show the transparency and placement of assets as the most important factors of ethical banking to resist the negative effect of the actual financial crisis.
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ethical banking, index, transparency, quality of assets, financial crisis.
Leire San-Jose, Jose Luis Retolaza and Dayli Bocanegra (2013), The ethical banks in Europe during the crisis: information transparency and placement of assets in Leire San-Jose, Jose Luis Retolaza (eds.) Prospective Innovation at Ethical Banking and Finance (Studies in Philosophy, Law and Economics), - Sumy: Vinnychenko M.D., pp. 20-38. Available at http://taadler.com/a42