Global Biz

Banking group renews credit expansion commitment

(Xinhua)
Updated: 2010-03-07 19:31

DHAKA - A group of growing, crisis-resistant and sustainable banks has renewed its commitment to support the expansion of US$2 billion in lending to unserved communities and green projects around the world, according to a press release on Sunday.

The 11-member Global Alliance for Banking on Values (GABV) renewed its commitment in a meeting in Bangladesh's capital Dhaka on Saturday which was held in the backdrop of the global financial crisis, the GABV press release said.

The GABV said that the Dhaka meeting aims at raising 250 million US dollars in new capital by pooling the expertise and resources of its members.

GABV first announced the ambitious commitment to support the expansion of 2 billion US dollars in lending in October 2009 in New York.

"Raising this money will result in US$2 billion in new lending, at a time when credit continues to be scarce," said Peter Blom, Chair and co-founder of the GABV and CEO of Triodos Bank in the Netherlands at GABV meeting in Dhaka.

"...fighting poverty will remain the first priority in the foreseeable future to provide a significant impetus in creating livelihoods and ensuring a more inclusive growth agenda," said Fazle Hasan Abed, co-founder of the GABV.

"Climate change is the other growing global threat that the banking industry has to commit itself to," Abed, who is also chair of the BRAC, the world's largest non-government micro-financing agency.

Founded by BRAC Bank Ltd in Bangladesh, other members of the GABV are Alternative Bank ABS, Switzerland, Banca Popolare Etica, Italy, Banex, Nicaragua, GLS Bank, Germany, Merkur Bank, Denmark, Mibanco, Banco de la Microempresa, Peru, New Resource Bank, United States, ShoreBank Corporation, United States, Triodos Bank, The Netherlands, and XacBank, Mongolia.

The network, which uses finance to deliver sustainable development for unserved people, communities and the environment, said it represents 7 million customers in 20 countries, with a combined balance sheet of over 14 billion US dollars. The alliance was launched at an event in The Netherlands in March, 2009.