A delegation of 100 people composed of members of the board, workers and members of the cooperative group Banca Etica were received by the Pope Francis on December 16th. This event took place in the context of the bank’s 25th anniversary in Italy and 10th anniversary in Spain.

In his speech to those present at the reception, the Pontiff lamented the current state of finance: “Unfortunately, in the globalized world, finance is now faceless and has become distanced from people’s lives.” And he emphasized the role and social responsibility of banks, reminding that “without adequate financial systems capable of inclusion and promoting sustainability, there will be no integral human development.”

He further emphasized that investments and support for work would not be possible without the intermediary role of banks and credit, with the necessary transparency. For the Pope, banking institutions have significant responsibilities to foster inclusive practices and support an economy of peace.

Anna Fasano, President of Banca Etica, expressed her gratitude to Pope Francis for his support of those who implement inclusive finance on behalf of the entire Group.

Pope Francis and Ethical Finance

Last December was not the first time Pope Francis spoke about ethical finance. The influential encyclical, published in 2015, Laudato Si’ also included mentions to how finance should be designed for a better world.

This encyclical, a formal letter issued by the Pope, focused on the care of the natural environment and all people, as well as on broader issues regarding the relationship between God, human beings, and the Earth. The subtitle of the encyclical, “Care for Our Common Home,” underscores its central messages.

In the encyclical Laudato Si’, Pope Francis critically addresses the global financial system and its impact on society and the environment. While it does not focus exclusively on finance, it does highlight key aspects of how modern financial systems contribute to social and ecological crises.

Amongst the critiques of the actual financial system in the encyclical we find:

• Number 52: Condemns unsustainable debts that oppress poor countries, promoting a fair and solidarity-based financial system.
• Number 56: Profit maximization prioritizes resource exploitation and excludes the vulnerable, such as the environment and human dignity.
• Number 109: The disconnect between finance and the real economy exacerbates crises and fosters inequality, disregarding the rights of future generations.
• Number 189: Redefining progress is essential for an ethical economy; it cannot rely solely on GDP but must integrate sustainability and well-being.

About a new vision of how finances should work we find statements like:

• Number 178: Economic decisions should prioritize social and environmental impact over profit, aligning with sustainability principles.
• Number 194: Calls on business leaders to take ethical responsibility for future generations and environmental protection.

We find that the encouragements of the Pope and his vision of how finances should serve citizens seems pretty aligned with what Ethical Finance providers have been advocating for years. “When finance tramples on people, foments inequality and distances itself from the life of its territory, it betrays its purpose,” the Pope stated during the encounter.

In recognition of  “good” bankers

In recognition of the work done by institutions that promote money and finance as a tool of social and environmental transformation working for the common good, the Pope said to Banca Etica and other entities present at the event: “Your presence here today speaks of a diversity in the economic and banking world. You have different histories and structures to respond to the different needs of people. Indeed, without adequate financial systems, capable of including and promoting sustainability, there would be no integral human development.”

Check here the full speech of the Pope.