Ethics in the Operation of Banks in the Perspective of the Financial Crisis of 2007–2009

Abstract

Ethics in bank operations is and should be relevant. Because of their special status – institutions of public trust and the special role they play in the market economy – creating the bloodstream of economic life while being its participants as entrepreneurs – all their actions should have ethical foundations. They staggered tremendously during the financial crisis of 2007–2009 (called the crisis of trust) when as a result of careless actions of banks a problem of so-called toxic assets appeared which have shaken the foundations of banking activity. This resulted in the collapse of the capital markets, partial paralysis of the global financial system and a massive recession. The greed and recklessness of financiers began to be identified with the institution of the bank. Th aim of this study is to draw attention to the fact that banks – despite the turmoil (or rather especially because of) the crisis of 2007–2009 – as institutions of public trust should be guided by the values, standards and principles of ethics in every aspect of its business despite the fact that they are entrepreneurs focused on maximizing profit.