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Corporate Social Responsibility in Banking

Corporate Social Responsibility in Banking

A socially responsible and sustainable bank is aware of the impact of its activities on society and acts accordingly. The impact of the banks on the stability of the economy requires integrity and due diligence including:

  • ·       Managing activity-based risks and setting up mitigation actions;

  • ·       Promoting transparency towards customers and stakeholders about its operational management and the products offered;

  • ·       Acting as engine of the economy, by e.g. providing loans and giving advice to new start-ups.

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Single Resolution Mechanism : How are bank defaults handled in Europe ?

Single Resolution Mechanism : How are bank defaults handled in Europe ?

During the financial crisis, political and financial authorities were back against the wall when facing the global deterioration of the financial sector. When a bank was about to default, two options were on the table: either let them fail with (often) unpredictable consequences on the financial and real economy, or rescue them using taxpayer money. The EU country members were not aligned in their choices, taking sometimes inconsistent decisions. In any case, when the second option was chosen, it resulted into durable reputation damage.

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