ETHICAL ALTERNATIVES TO AN INEFFICIENT FINANCIAL SYSTEM / Léa POULIN / 2020

Titre : ETHICAL ALTERNATIVES TO AN INEFFICIENT FINANCIAL SYSTEM Type de document : Mémoire Auteurs : Léa POULIN, Auteur Année de publication : 2020 Importance : 27 p. Note générale : Pour accéder aux fichiers PDF, merci de vous identifier sur le catalogue avec votre compte Office 365 via le bouton CONNEXION en haut de page. Langues : Anglais (eng) Mots-clés : Management FINANCE DE MARCHE ; CRISE ECONOMIQUE ; ETHIQUE ; PROBLEME Résumé : The financial crisis of 2008 highlighted the banks’ weakness when involved in complex financial arrangements and the danger they represent for the real economy. Ten years after the crisis, the financial system still does not seem to be aligned with the needs of society. Throughout this seminar paper, I first wanted to take stock of the structural vulnerabilities that led to the subprimes crisis and that have still not been tackled in a decisive way. I studied the largest European banks’ reluctance to take initiatives in order to mitigate the risk they pose to society as well as the vulnerability of regulatory authorities facing the financial lobby. In recent years, their lack of commitment encouraged the emergence of better-quality financial actors such as ethical banks. Thus, in the meanwhile, I aimed at analysing how solid the ethical and sustainable banks were and whether they could prevail over systemic banks. To do so, I mainly read a lot of articles as well as reports from financial analysts or regulatory bodies. Through banks’ annual reports, I was able to study ethical banks’ service offering to customers compared to standard banks. Banks’ annual reports also made it possible to compare the degree to which the two types of banks financed the real economy, their performance, and profitability (through ratios such as ROA and ROE), their solidity (through the proportion of net equity) but also their amount of bad debts. I have let the figures speak for themselves. I could analyse the efficiency of their function of intermediation as well (that is meant to be sustainable) through a non-parametric study that has been completed last year. Finally, I managed to contact an advisor in ethical finance from a French alternative bank (called La Nef) in order to get a more operational explanation of how these banks work. I have come to say that, on average, ethical banks show greater financial strength than conventional banks as well as higher profitability. Ethical banks proved to be more resilient than their conventional counterparts to the 2008 crisis by maintaining almost constant levels of profitability during this period. Nevertheless, ethical banks suffer from inadequate European regulations which hinder the development of new banking activities and thus slow down their growth and notoriety. I finally tried to make a few recommendations to bring about this change and put an end to the threatening nature of the current financial system.   Programme : PGE-Rouen Spécialisation : Finance Permalink : https://cataloguelibrary.neoma-bs.fr/index.php?lvl=notice_display&id=529196