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The Global Alliance for Banking on Values (GABV) was

founded in 2009 as an independent network for banks using

finance to deliver sustainable development for unserved people,

communities and the environment. In 2010 the organization set

a goal of touching one billion lives with sustainable banking by

2020. Presently there are 13 GABV members with a combined

asset base in excess of USD 26 billion and over 7 million clients.

The GABV is in the process of expanding its membership with a

goal of 50 to 100 members by 2020.

Global Alliance for

Banking on Values

Financial Capital Expansion

and Impact Measurement of

Values Based Banking

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Who are GABV members?

Innovative banking institutions whose primary focus is on:

Delivering social finance products and basic financial services while

Financing community based development initiatives and social entrepreneurs thereby

Fostering sustainable and environmentally sound enterprises and fulfilling human development

potential including poverty alleviation while

Generating a triple bottom line for People, Planet and Profit.

What are GABV shared values?

Although each GABV member is unique, they share the values of:

Using money as a tool for enhancing the quality of life through human, social, cultural and

environmental development,

Responsibility for the long term impact of our efforts on our interdependent environment and

communities, and

Transparency, trust, clarity, and inclusiveness in delivering our products and services.

What is the GABV joint mission?

As a global alliance GABV members will work together to: Deliver joint ventures to drive sustainable social and environmental change,

Provide a reference point for sustainable banking and advocacy for social innovation in the financial

sector, and

Combine and share strengths, capabilities and resources to improve each of our members competitive

positions.

How will the GABV deliver its goal?

The GABV intends to realize its goal through:

Network expansion to include new members and supporting partners,

Financial capital expansion to support growth of banking activities,

Implementation of standardized impact metrics,

Human capital development to grow sustainable banking expertise,

Thought leadership on sustainable banking issues.

Rationale for Expanding Values Based Banking

Expanding Values Based Banking addresses many underlying causes of the current financial crisis,

providing a credible alternative to a conventional banking model that focuses on short-term financial

profitability. It can deliver public confidence and reduced complexity in the financial system and can

provide financial and other forms of support to meet the needs of the real economy.

Values Based Banking can leverage capital investment to achieve more impact by triple bottom line

initiatives. Each unit of capital invested in a financial institution can generally be used to provide eight

to ten units of finance for sustainable development projects. The members of the GABV show the

capabilities of Value Based Banking.

The GABV members provide critical support in meeting the financial requirements of small and medium

sized enterprises, key drivers of economic development in developing countries, contributing to GDP

growth and employment generation. Businesses that can generate new jobs are the best hope for

poverty alleviation. However, limited access to credit has historically stunted the growth potential of

these businesses increasing the importance of banks that serve this market.

Financial Capital and Impact Metrics

The GABV is executing a project to raise financial capital and standardize impact metrics.

This project is being conducted in co-operation with ShoreBank International Ltd. and will be completed

by December 2011.

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The project will:

Test the hypothesis that a fund to provide Tier1 and Tier 2 capital would

- Enable banks with business models consistent with GABV values (Values Based Banks) to expand

their ability to reach clients addressing economic and social development in an environmentally

sustainable manner,

- Maintain and expand the mission and impact of these Value Based Banks, and

- Demonstrate that these benefits would not otherwise be achieved without additional capital; Establish clear criteria and a measurement framework for potential investees (Values Based Banks)

relative to

- Current economic, social and/or environmental impact, and

- Future economic, social and/or environmental impact of the expansion resulting from increased

Tier 1 and/or Tier 2 capital;

Communicate the results of research on the hypothesis and measurement framework to the general

public supporting broad educational efforts regarding the ability of Values Based Banks to positively

impact economic and social development in an environmentally sustainable manner.

Under GABV leadership this project will:

Conduct market research to quantify how much additional Tier 1 and/or Tier 2 capital can beproductively used by Values Based Banks, for the benefit of their clients, if a fund were to launch,

Conduct market research to establish the criteria for the specific types of Values Based Banks that will

have access to the fund,

Conduct market research to determine the nature and number of investors who will provide capital

through the fund,

Conduct market, legal and regulatory research to determine the nature and structure of an investment

fund focused on providing Tier 1 and/or Tier 2 capital to Values Based Banks,

Conduct market research on how to quantify and report on the economic, social and/or environmental

benefits to clients resulting from better access to capital for Values Based Banks to

- Determine the impact metrics to be tracked by banks that access the fund,

- Determine the mechanism and its implementation plan by which such impact metrics will be tracked

and reported by the banks and/or their clients,

Publish the findings from the research described above and work with a charitable organization to

disseminate these findings (likely to include the convening of a broad-based stakeholder workshop

among other means).

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The value for Financial Institutions (FIs) of working with GABV includes:

1 Participation in financial capital raising that seeks to raise significant capital for investment in FIs

with a sustainable development finance focus from capital sources that are willing to provide long

term capital in return for a combination of financial and social returns.

2 Participation in implementation of standardized impact metrics that seek to advance the industry-

wide discussion regarding the development of clear and transparent criteria and tools for measuring

FIs social and environmental impact.

3 Participation in human capital development that seeks to provide support for the training and

development of bankers and managers in sustainable development banking practices as well as

building a network for knowledge sharing across members providing the benefits of scale and

diversity to FIs that tend to be of limited size and regionally focused.

4 Participation in a network of Values Based Banking CEOs that has developed within the GABV

providing for peer-to-peer discussions on the challenges they face with open sharing of potential

approaches to resolving these challenges.

The value for investors, that are providers of financial capital, of working withGABV includes:

1 Participation in financial capital raising that seeks to raise significant capital for investment in FIs

with a Value Based Banking focus. The growth in demand for Values Based Banking requires a scaling

of individual efforts beyond earnings retention to support current and new activities as well as meet

increased regulatory capital requirements.

2 Participation in implementation of standardized impact metrics that seeks to advance the

industry-wide discussion regarding the development of criteria and tools for measuring FIs social

and environmental impact. This effort will provide an opportunity for current and future investors

to review the impact of Values Based Banks thereby supporting the non-financial evaluation of

investments.

3 Participation in the ongoing thought leadership on sustainable banking issues that seeks to

engage key stakeholders in proving the importance and impact of sustainable banking practices that

deliver a triple bottom line for People, Planet, and Profit.

Contact Information

For further information, please contact the GABV secretariat. Email david.korslund@gabv.org

or call +31 (0) 6 3427 6907, or email james.niven@gabv.org or call +31 (0)30 694 2421.

DISCLAIMER This document does not constitute an offering of securities of any kind

and is intended to convey only basic background information. Nothing herein may be

construed as a representation or warranty by ShoreBank International Ltd. The information

contained herein may not be interpreted as binding or guaranteed with respect to the

past, present or future. Financial information and other data contained in this document

are based on subjective analyses and have not been independently verified.www.gabv.org

Funded by The Rockefeller Foundation, Triodos Foundation, BRAC and BRAC Bank, and Vancity.