Banks lacking Third World ethical policy

Irish banks have been strongly criticised for the absence of ethical policies in relation to their lending to Third World countries. The Debt and Development Coalition has also attacked what it says is the total lack of accountability and transparency in the banks loan arrangements with developing states.

The DDCI was reacting to the findings of a survey it commissioned in association with the Northern Ireland Development Education Forum. The report states that none of the 13 banks who replied out of 20 surveyed take the ethical considerations of lending seriously. National Westminster bank, Ulster Bank's parent, did, however, indicate some understanding of the issue. The report Your Money...Whose Ethics? calls on Irish banks to develop and publish ethical standards on Third World lending. "Lending to developing countries, even if it is relatively small in terms of overall lending or for the purpose of supporting the trade of Irish companies, should be done under ethical guidelines" it states.

Mr Michael O'Brien, of Concern's policy department, said Ireland owes it to the people of the developing world not to allow the debt crisis to worsen through inappropriate lending by commercial banks.

The member organisations of the DDCI and NIDEF will be urging their banks to put such and ethical policy in place. "All bank customers have the right to voice their concerns on the absence of ethical criteria and demand greater accountability in how their deposits are used," the report suggests.