Green economy  |  Publications  |  06.07.2011

The Ecology of Finance: An alternative white paper on banking and financial sector reform

This publication from the New Economics Foundation calls for recasting the entire banking and financial sector according to what the proper function of finance should be; a financial system that works like a productive ecosystem.

No longer wedded to short-term and profit-driven models of lending and to risky, volatile speculative investment, the banking sector would, instead, form a highly diverse ‘ecology’ of institutions that range in structure, market sector and scale; adapted to the complexity and shared long-term goals of the economy.

It should be characterised by diversity and an ability to sustain specialised and adapted life in the face of external shocks. Instead of a monoculture of mega-banks deemed too big to fail and answerable only to the demands of private shareholders, an ecology of finance would involve a range of different financial institutions.

Edited extract from the executive summary.

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