Data from 65 countries to identify successful alternatives to commercial banks.
Commercial banks = banks that have the main objective of maximising shareholder value.
Four distinct forms were identified:
1. cooperative banks
2. credit unions
3. community development finance institutions (CDFIs)
4. public interest savings banks.
Their common characteristic is the goal of creating value for stakeholders, not just shareholders. Several trends emerge across all four types of bank:
Greater focus on the needs of customers, including more competitive products, better service, and longer term lending.Explicit aim to provide for customers who are underserved by commercial banks.Positive impact on local economic development through lending to small and medium businesses, preventing capital drain from regions, and maintaining branch networks.Positive impact on financial stability through less volatile returns, higher levels of capital, prudent balance sheets, and expansion of credit provision after the financial crash.
the report 28 pages (pdf) http://ow.ly/mlfxg