What is the Meaning of Green Banking?
Defining green banking is relatively easy. It means promoting environmental-friendly practices and reducing your carbon footprint from your banking activities. This comes in many forms. Using online banking instead of branch banking. Paying bills online instead of mailing them. Opening up CDs and money market accounts at online banks, instead of large multi-branch banks. Or finding the local bank in your area that is taking the biggest steps to support local green initiatives.
Any combination of the above personal banking practices can help the environment. So this leads to the question, which banks are green. In general, online banks and smaller community banks have better track record than larger banks. For instance, take a look at the banks that British Petroleum has been reported to seek lines of credit from this past summer after the oil spill.
Goldman Sachs (GS)
JP Morgan (JPM)
Bank of America (BAC)
These banks have at least one thing in common. That is, they are all large billion-dollar asset banks. They are also in the group of banks that received TARP money in the government bank bailout program. In would seem common sense to label these banks as not eco-friendly and assume that they leave an enormous carbon footprint in comparison to an online banks like Everbank.com or Virtualbank.com. Despite these assumptions, which Green Bank Report believe to be true, it is important to remember that even these large BP-friendly, TARP-sucking monster banks can be induced to go green. It just takes a little grass roots effort. In the meantime keep checking sites likes listed below for the latest green banking news: