Abstract:
Conventional Banking has so far been proved to be inadequate in
providing solutions to socio-economic issues, as their focus is on
increasing wealth. This was proven with the world economic
downturn in 2007. Banks are losing its Values; there is a segment of
society which is still excluded from banking. Banking too has
contributed to the degradation of environment. Banks are also under
scrutiny by Regulatory bodies and Governments for unethical
practices. Therefore, it is necessary to judge banks not only on
financial performance but also on its ability to maintain Ethical
Values, Financial Inclusion and Responsible Behaviour, hence; a
need arose for a new version of banking system which could address
issues so far neglected by Conventional Banking. Alternative
Banking systems are emerging such as Ethical Banking. Ethical
Banking once developed could broad base the banking community.
Although many researches had been carried out in the global scale
on this subject, there were no researches conducted on this subject in
Sri Lanka. The purpose of this paper is to explore whether Ethical
banking can be presented as an alternative to conventional banking.
This study is totally a desk research in the form of a literature review.
