New Tools and Technologies

Charter a Class of High Transparency Banks

A new type of bank charter is proposed for national banks that operate at a level of higher transparency as to their environmental, social and other impacts (Impacts). This charter would allow such banks to be designated as CDFIs: Community Development Financial Institutions, free of geographic constraints, so that "community" equates to semantic concern.

 

In exchange, such high transparency banks would be required to collaborate around a set of open standards for tracking and publishing their Impacts. The standards would be transactionally validated. They would find use in corporate and foundation applications so as to improve the effectiveness of corporate social responsibility, foundation high-impact philanthropy and the capacity of banks to lend by including the Impacts as an element of underwriting and rate-setting. An example of such standards would be to spatially-enable XBRL: eXtensible Business Reporting Language so as to collocate the Impacts of funds handled by such banks, and see in effect the "showers of money" impacting specific places on the face of the Earth.

 

In essence, the oft-cited "social return on investment" calculus would become a granular, transactional standard for banks operating with high transparency.

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Idea No. 2358