Social Bank

Description

Dr. Olaf Weber:

"Q: What is a social bank?

Social Bank is a bank which focuses on the social and environmental impacts of its investments and loans. Currently there are several successful social banks in Canada, including British Columbia’s Vancity and Quebec’s Dejardins.

Q: What are some of the key issues faced by social banks?

It will become more and more important for social banks to be transparent about risk and opportunity, because not all social banks are successful. Shore Bank in the United States is one example. It was difficult for this institution to connect conventional risk management issues that arose with their social goals and remain sustainable. Shore Bank had a very good concept and vision but faced a lot of financial problems. Difficult conditions in the US and the Chicago region in particular, where the bank is based, contributed to its insolvency earlier this year." (http://socialfinance.ca/blog/post/social-finance-research-an-interview-with-dr-olaf-weber)