Knowing for what. Summary of Ethical Banking.

What is Ethical Banking?

Ethical Banking has been a part of the business segment of Raiffeisen banks in South Tyrol, since the year 2000. The idea behind it is: to show solidarity, to support own initiatives and to help achieve self-help. By Ethical Banking, savings, which help finance projects with a supportive innovative loan, are collected. Together, the Raiffeisen banks and the customers take a step in the direction of a future worth living in.

How exactly does Ethical Banking work?

In Ethical Banking the saver chooses a sustainable topic which he can invest his savings in. He can choose one out of six sustainable and endowed topics. The savings are used to help a project, with a supportive interest loan, in the sustainable topic which the customer chose. The low interest loans sometimes develop if the saver relinquishes the yield and sometimes they develop through the slight addition in the interest loan, from the Raiffeisen banks, which sometimes does not even cover the costs of the bank. The direct influences of the interest loan, as well as the selection of the saving line through the investors, are the most important characteristics of Ethical Banking. The projects, which are financed to an interest loan, calculated by Ethical Banking, are chosen by the Raiffeisen banks and their partner organizations and associations. The partner organizations and associations are specialists in their area and depending on the project, the best partner organization is chosen for the collaboration.

Why is the project called Ethical Banking?

Since we live in a country where three languages are spoken, we had to find a name, which everybody would understand. Ethical Banking is a term that everybody understands and it stays the same in all three languages. Ethical Banking has already been used before. It had its peak in 2006, because Muhammed Yunus, the founder of the Grameen Bank and the microcredit system in Bangladesh, received the “Nobel Peace Prize”. This testifies that Ethical Banking has already become socially acceptable. In Europe there are also some other banks, who make use of Ethical Banking. We already have collaborations with some of these banks and we see them as role models for our Ethical Banking. Some of these banks are: ABS in Switzerland, GLS in Germany or Banca Etica, which is based in Padua.

How can the customers retrace, for what their savings are being used?

It is always made sure that the customers know what happens with their savings 100% of the time. The saving customer is closely informed where his savings are to which time and which projects are being helped with it. All projects which are being financed over Ethical Banking, except for the Bäuerlicher Notstandsfonds, are published for every customer to see. On our homepage and on our YouTube Channel you can always find new photos and articles concerning examples of the financing of projects through Ethical Banking. The thought behind making a ">YouTube Channel</link> and a homepage is that the people who save their money see how much his/her money can help fulfill another person’s dream. This way, the customer sees how much can be achieved with Ethical Banking.

Where can I aquire Ethical Banking products?

Ethical Banking was developed in the Raiffeisen banks in the year of 2000, in Bozen, South Tyrol, where the headquarters (Obstmarkt 13, Bz.) stand till now. Meanwhile 23 other Raiffeisen banks all over South Tyrol have become a part of Ethical Banking and have started offering products, in order to help save money, to their customers. If you look under "Partner Banks" you can find a bank close by, offering Ethical Banking.