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Finance and Credit
 

The historical roots of sustainable banking

Vol. 21, Iss. 6, FEBRUARY 2015

PDF  Article PDF Version

Available online: 7 February 2015

Subject Heading: Banking

JEL Classification: 

Pages: 16-26

Kanaev A.V. Saint Petersburg State University, St. Petersburg, Russian Federation
tcfm@econ.pu.ru

Kanaeva O.A. Saint Petersburg State University, St. Petersburg, Russian Federation
o.kanaeva@econ.pu.ru

Importance The article notes that the depth and duration of crisis processes in financial system and economy of the developed countries, as well as the slowdown in developing countries, contribute to rethinking of business foundations and the modern economy development, in general. This is due to the increased attention to the emergence and development of new business models in various sectors of globalized economy.
     Objectives In particular, in recent years, such forms of banking business as sustainable banking generate great interest. The sustainable banking history and problems of modern development attracted the attention of researchers, practitioners and policy makers from different countries.
     Methods The paper has analyzed historical aspects of origin and development of the sustainable banking. We used a historical and genetic method of research, examined a wide range of original historical literature on religious foundations of financial and economic development of the European society.
     Results For the first time in domestic economic science, the article discloses the origination and evolution of the sustainable banking phenomenon. We came to a conclusion that banking has evolved over the centuries under the influence of two trends that have deep historical roots: creating financial business for maximum profit due to high interest rates and the use of various property security measures, as well as an adoption of high moral and ethical standards of business conduct, leading to the emergence of credit organizations operating on the principles of charity, solidarity and mutual assistance. In today's world, social commitment and responsibility of business find their implementation in the activity of sustainable, social, solidarity, responsible, ethical, or alternative banks, which not only preserved their position during the financial crisis, but have also achieved impressive economic performance.
     Conclusions and Relevance We emphasize that learning from the experiences should be the starting point in the search for effective post-crisis business models in the financial sphere.

Keywords: sustainable development, corporate sustainability, sustainable banking, credit cooperatives, pawnshops, percent, savings institutions

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