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ENHANCEING SUSTAINABLE ECONOMY THROUGH ETHICAL BANKING
Abstract
The fundamental challenge of the contemporary world is finding a proper model of transformation of the existing linear, unsustainable and irresponsible economy towards the circular economy harmonised with the needs of present and future generations. Financial institutions, due to their intermediary role, should have a particularly important role in the transition towards a more sustainable economy. In the last 30 years various ethical and alternative financial institutions have been founded in many countries aimed to foster economic development that will result with with higher quality of life of various stakeholders, increased social capital and environmental protection. The main purpose of the paper was to point out the importance of ethical banking for the transition of Croatian economy towards a more sustainable model. The forthcoming Ethical bank is expected to enforce the already started process of economic localisation, contribute to the well-being of its co-owners and other stakeholders and contribute to environmental protection.
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