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Kenneth Miracle




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What is Ethical Banking?!

Ethical banking involves consciousness of how banking practices affect society and the environment. Financial institutions that emphasize ethic practices  look for profit like other financial institution.

However, they try as much as possible to generate earnings without sacrificing principles or causing havoc.

Ethical banking can also be said to be core set of principles and conventions that govern how banks interact with their clients, communities and the world at large.

Consequently the objective of this article is to analyze the various ethical practices to be considered when banking.


Some general principle of ethics that should be considered when banking are as follows:

  • Transparency: Bank customers should be informed of any rights and obligations, benefits and risk of the service offered and procedures or terms of agreement followed. The customers should be aware of any form of services charged so that they won’t get pessimistic about the company.
  • Integrity: Banks, when performing their duties should be honest in their relationship with their clients, customers, employers, shareholders, other groups, institutions and corporations. They shouldn’t be fraudulent in their activities or services they render.
  • Moral Responsibility: In the banking profession, a moral responsibility is to be maintained. Moral responsibility is the principles of right and wrong, the ability to know or do what is right or wrong ; the right or wrong behavior that is expected from a person. Customers deposit their properties with the bank because they have a strong belief that the bank could keep their money safe.
  • Security: A banker must be sincere. He or she must honor agreements reached with the customers on whatever interest charges, bank collaterals etc. They must be sincere with their dealing with customers so as not to incur mistrust from the customers.



For you to know that some banks are ethical. There are some certain things you will see these banks do that show their ethics. There are few key characteristics that nearly all banks maintain when it comes to ethical banking;


Screening clients;

It is important for any bank to screen its clients. Though the most common reason is to be sure that the client is financially sound. Screening clients is additionally important so that the bank won’t end up making associates with companies and individuals who do not maintain ethical practices.


Getting involved in the community;

Banks following ethical principles are typically eager to interact with their local communities, fostering a healthy local environment. Their guidelines may include things like establishing funding for affordable apartment complexes or setting up college scholarships for secondary school students etc.


Consistency of ethics;

Banks need to “walk the walk”, keeping both internal and external ethics consistent. Whatever the bank deems ethical externally must be maintained in-house. For example, if a bank refuses to work with a customer because the bank doesn’t accommodate handicapped workers, they should accommodate staff with different incapabilities.


Finally, we should learn to bank ethically so that we won’t fall victims of bad commendation and personalities without ethics. Organizations should set down principles for employees to adhere to, so that there would be an healthy banking system.


Kenneth Miracle is a creative Writer who just joined Smarttechvillas. He is a Content writer/Content Creator, and also a proofreader. He is a very skilled writer and can create contents in any kind of Format. He has a blog where he posts some of his contents, and also write on LinkedIn and medium which has been so cool. He has written many books which are yet to be published. You can reach him through his email: [email protected]

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