Ethics, banking and ownership

Panu Kalmi

Published : 2014-05-01

Vol. 55 No. 2 (2014)

Ethics, banking and ownership

Panu Kalmi

Abstract

The paper analyses the notion of banking ethics and presents a simple model of risk shifting that illuminates the conflict between depositors and shareholders and presents shareholder incentives to gamble “with other peoples’ money”. Customer ownership through cooperative or savings bank structure solves this problem, however, these structures have problems of their own. Finally, it stresses the benefits of organizational diversity in banking, on how banks in different ownership structures may foster that diversity, and also why ownership may not be a sufficient condition for diversity.

Keywords:

bank ownership, bank diversity

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Kalmi, P. (2014). Ethics, banking and ownership. Safe Bank, 55(2), 27–37. Retrieved from https://ojs.bfg.pl/index.php/bb/article/view/373

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This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

References

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