Ethics and banking; comparing an Economics and a Christian perspective

Abstract

In this article, we seek to challenge the common approach of economics to ethics in banking, which can be characterized as pursuit of self-interest, even if it is realistic. We contend that widespread teaching of this approach, and its popularization, has been an important factor in the genesis of the financial crisis, albeit not the only one. In this we concur with Benedict (2009), that “business ethics risks becoming subservient to existing economic and financial systems rather than correcting their dysfunctional aspects”. The approach of biblical theology, we contend, offers much greater challenges to unethical behaviour and hence deserves to be assessed seriously. There remains a difficulty of how the approaches that theology commends can be promoted in banking. Approaches could include the power of example, as well as enshrining the approach in remuneration mechanisms.