You hear more and more about Banca Etica these days. What exactly is it?
Banca Popolare Etica (that's its official name) was founded three years ago (1999, Ed. note) by several major Catholic and secular organizations working in social assistance and solidarity, environmental protection, cooperative ventures, and international development. Today it has the enthusiastic support of thousands of members—over 18,000 to date—including individuals, associations, religious organizations, regional and local governments, and other banks.
Banca Etica is a genuine bank, but it operates on a principle that sets it apart: it guarantees depositors that their savings will be used—based partly on their own stated preferences—exclusively to fund loans for initiatives, associations, organizations, cooperatives, and enterprises that pursue projects benefiting disabled and disadvantaged people, or improving quality of life in social, health, environmental, and cultural dimensions—both in Italy and in developing countries. These organizations work without profit as a motive, or at least not for profit's sake alone. The bank also offers small personal loans and mortgages to members for specific family needs. (Examples of funded projects include the monks of Lanuvio and the association Città Futura, Ed. note).
When approving loans, the bank evaluates above all the effectiveness of the project and the integrity of the people running it—often without requiring the collateral that conventional banks demand.
All of this happens according to principles of maximum clarity and transparency:
- All deposits (checking accounts, certificates, bonds) are registered in the depositor's name. There are no bearer deposits.
- Every loan granted—unique in Italy—is disclosed to all bank members through regular bulletins that include the borrower's name, the loan amount, terms, and the project description.
- On interest rates: Banca Etica applies nearly uniform rates, both on deposits and loans, across its entire client base. This means none of the stark disparities in treatment that conventional banks impose between large and small depositors, major and minor entrepreneurs, or between different regions.
Certificate deposit rates now align roughly with those of other banks. Loan rates are significantly lower than what the conventional banking system charges for comparable clients of Banca Etica. For those seeking better returns on savings, the bank has founded ETICA S.G.R., a subsidiary that will launch and distribute carefully selected ethical investment funds, starting this autumn.
An independent Ethics Committee—elected by the membership alongside the board and auditors—oversees all of these operations.
In its first three years, Banca Etica (headquartered in Padua) has opened five branches in Rome, Padua, Milan, Brescia, and Vicenza, with more coming. It has raised 12 million euros in capital, accumulated 130 million euros in deposits, and issued 70 million euros in loans.
Anyone interested in becoming a member or customer can contact a local branch or visit bancaetica.it
— Gianni Mazzarotto, 2002
