NRC HANDELSBLAD INTERNATIONAL: Banks have to go back to the basics of their business of saving and lending, says Dutch princess Máxima. The former banker spoke at a symposium on social banking on Tuesday.
Princess Máxima had nothing good to say about her former colleagues, bankers who have plunged the world into a deep financial crisis. At a meeting organised by Triodos Bank in the Dutch town of Zeist, Máxima said on Tuesday that bankers had lost sight of the core values of their profession. With "overzealous marketing" practices they sold inappropriate loans to vulnerable consumers who did not know what they were getting into. The financial crisis was due in part to these kinds of practices. "Only now we are starting to have some insight in the real extent of the consequences of the last months," the princess said.
Before Máxima met crown prince Willem Alexander ten years ago, she worked as a commercial banker in New York for banks such as Deutsche Bank and HSBC. Máxima gave her talk on Tuesday to mark the founding of the Global Alliance for Banking on Values, an alliance of twelve financial institutions focused on social banking and microfinance, including Triodos Bank.
Microfinance
Over the past three years Máxima has served on a UN advisory group for microfinance: the issuing of loans to poor people or starting entrepreneurs in developing countries. The essence of banking, says Máxima, consists of trust, building long-term relationships and offering financial products that have added value. "Neglecting these values seems to be at the heart of the causes of the crisis."
She appealed to governments to set up a "'light touch' but adequate system of market regulation" and to offer consumers financial education, so that they can better understand the financial products they are offered. "It is the role of banks and microfinance institutions to have consumer protection and transparency written into the DNA of their organisation," Máxima said. >>> By Roel Janssen | Thursday, March 5, 2009
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