Ever since the financial crisis took place, all the big banks in the industry have probably not done enough to stand out as socially responsible organizations. This is the main conclusion of a report that was released last Wednesday by an advocacy group.
The report has summarized the findings of a study that was conducted recently. Take any reputed or leading bank in the company, and you will find that all the major banks had a score less than 60 on a scale that went up to 100. Not at all impressive. The research evaluated these scores by measuring the performance of seven leading banks in the nation in different aspects such as responsible lending, executive compensation, political contributions and risk management.
After going through the results of the study, an industry expert claimed that even though these banks were known in the sector, the results classified them as banks lying in the range between average and below-average. There was no single bank that could stand out as a leader in the period after the post financial crisis.
The study obtained responses from different banks through questionnaires, in-person meetings, conference calls, social responsibility reports, websites and databases of watchdog organizations.
The bank which scored the highest points did so with an overall score of 60. The same bank also led in investment and responsible lending. The second bank had 59 points and topped the risk management field, in the third place; there was a tie between two banks at a score of 57. The lowest score was 51, but even this bank topped in the executive compensation practices.
The study highlighted several patterns of the seven banks that were analyzed. Almost all of them had improved their risk management practices which led to a boost in regulatory compliance. However, there were still areas that needed improvement. In terms of environmental sustainability, the banks had invested significant amounts, but they could still improve their performance by putting in more efforts.
When asked to comment on the results of the report, the bank with the second position, released a statement that said they had reached an agreement with concerned authorities and would focus on resolving the issues. The same had already been mentioned in their corporate social responsibility report. All other banks did not give any comments immediately.
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