“Banks with values are those that only grant loans to companies that respect the environment, culture, and society”: Joan Melé

The financial institutions that operate under an ethical banking model have the potential to generate positive impacts on society, through financing to companies that have a "clear dimension of human and environmental responsibility". This was the core of the analysis made by Spanish expert Joan Antonio Melé during his conference "La banca como agente de cambio social" (Banking as an agent of social change), which was held at the Auditorium of the Argentinean National Securities Commission in Argentina, and later at the Auditorium of the Central Bank of Uruguay (BCU, for its acronym in Spanish), in Montevideo. 

This meeting was organized by CAF, Development Bank of Latin America, in the framework of its Social Innovation Initiative, in alliance with the National Securities Commission and AVINA Foundation in Argentina, jointly with the Central Bank of Uruguay, the Association of Private Banks of Uruguay, and the AVINA Foundation and Sistema B, both in Uruguay. Melé explained, "banks with values are different from traditional financial entities as they only gran credits to companies that develop their activities including social, cultural, and environmental aspects".  

When greeting the participants of the event, Mario Bergara, President of BCU, referred to the ethics and roles of central banks. He pointed out that "central banks have an implicit ethical role in their basic functions, in addition to performing them based on adequate values such as transparency, responsibility, and efficiency". He stated that the ethics of a society is measured by the way in which it treats those who are most vulnerable, adding that the lack of control over inflation and financial crisis are "paid" by those who are unprotected, stating, "The function of central banks specializes in mitigating the possibility of macroeconomic and financial turmoil".  

During the opening of the event, CAF's Director Representative in Uruguay, Gladis Genua, expressed the relevance that these subjects have for CAF in its objective of promoting development with a sustainable approach. In this regard, she underlined that the Institution promotes the design of inclusive public policies as well as the development of private initiatives which, based on ethical values, may contribute to a more equitable and fair world. She pointed out, "in this case, it is important to visualize ethical banking and promote a wide debate to boost alternatives that are more supportive of everyone, especially the most vulnerable populations". 

In the case of Argentina, Rubén Ramírez, CAF's Director Representative in that country, expressed the importance of promoting a wide-ranging debate regarding the search for an economic system that addresses the needs of the citizens, and where ethical banking plays an essential role financing projects that have a positive impact on the real economy. 

Melé also stated that the banking system with values must focus on helping clients use the money in a responsible manner, and be "radically transparent", informing precisely to what companies and organizations they channel the resources of their savers, through their web site or other means. 

The expert shared his experience of how, after working for 30 years in the traditional banking system, he became a part of Triodos Bank, the first ethical bank in Europe, certified as a B company. He has been a driver of its growth strategy. 

Currently, Melé is a member of the Advisory Council of that financial institution, and in addition he manages the company Taller de Conciencia (Awareness Workshop), whose purpose is to support entrepreneurs, managers, and professionals in their path toward personal transformation, to promote positive social changes from their respective roles. 

Regarding Triodos Bank, Melé highlighted that its trajectory shows that ethical banks are able to combine the generation of economic profitability, making them sustainable in time while complying with their principles.  

Ana Mercedes Botero, CAF's Director of Social Innovation, highlighted how through her area, the Institution identifies and promotes these types of initiatives for the development of sustainable solutions for the social challenges of Latin America. She explained, "Achieving an evolution in the financial and entrepreneurial systems represents a significant step toward redefining success in business, as well as a step toward an economy based on ethics, sustainability, and social inclusion". 

In this respect, Botero highlighted CAF's support to Sistema B to promote B Companies in Latin America through its social innovation program. "B Companies are companies that use the power of businesses to improve society, and Triodos Bank, as a B Company, is an example of this".  

For Guillermo Scallan, Innovation Director at AVINA Foundation, "in order to comply with the new Sustainable Development Objectives, it is necessary to have innovative and focused financial tools that enable the development of projects and programs that lack financing today. The presence of Melé in the country, to train the executives of a future ethical banking system, is a large step for the development of an economy based on the human being and the planet".