Ethical Banks lead Europe in social economy financing, new report by Banca Etica Group shows
European ethical banks are outperforming traditional banks in financing the social economy and maintaining strong credit quality, according to the newly released “Capital for Common Good” report, the 8th report on ethical dinance in Europe, presented at the European Parliament.
The study, produced by Fondazione Finanza Etica, Fundación Finanzas Éticas, and the European Federation of Ethical and Alternative Banks (Febea), highlights ethical finance as both socially impactful and financially robust.
The report shows that more than 70% of ethical banks’ lending in 2023 supported Europe’s social economy, an ecosystem of 4.3 million cooperatives, mutuals, associations, and foundations that employ 11.5 million people. Ethical banks managed €79 billion in assets, maintained lower nonperforming loans than major European banks (1.61% vs. 1.89%), and delivered higher return on assets.