As a significant step towards helping refugees integrate into Italian communities, Banca Etica, the EU’s leader in ethical finance, has strengthened its support for this vulnerable group with assistance from the European Investment Bank (EIB). The EUR 60 million loan agreement between Banca Etica and the EIB, signed on 1 July 2024, focuses on refugee inclusion as one of three priority areas, alongside gender equality and development in southern Italy.
This agreement is expected to generate investments of at least EUR 165 million in the real economy. Notably, at least 30% of the EIB loan will be dedicated to financing projects aimed at supporting refugee inclusion.
As Italy’s first and only bank entirely dedicated to ethical finance, Banca Etica has been operating nationwide for 25 years and has more recently expanded to Spain. With a mission focused on social welfare and environmental responsibility, Banca Etica evaluates the social and environmental impact of its projects, not just their financial profitability.
Currently, it boasts 48 000 members, EUR 92 million in share capital, savings holdings of over EUR 2.5 billion, and a loan portfolio exceeding EUR 1.2 billion dedicated to various projects of individuals, organisations and companies. Additionally, Banca Etica is an active member of leading international ethical finance networks, including the European Federation of Ethical and Alternative Banks and Financiers (FEBEA) and the Global Alliance for Banking on Values (GABV).
To qualify for Banca Etica’s refugee-focused loan, supported by the EIB, final recipients must meet at least one of four criteria demonstrating a commitment to refugee inclusion. Eligible recipients include:
- Managers of state-authorised refugee reception centres in Italy, ensuring the provision of essential services according to national standards.
- Companies that employ or plan to employ refugees, with a commitment to retaining these employees for at least a year.
- Providers of vocational training or traineeships, actively engaging in the professional development of refugees, and lastly,
- Businesses with significant refugee representation, either in ownership (holding 25% or more of shares) or in management.
From left to right: Banca Etica President Anna Fasano and EIB Vice-President Gelsomina Vigliotti signing the agreement on 1 July 2024 in Rome.
Complimentary advisory support
In addition to financial backing from the EIB, Banca Etica also benefits from complimentary free-of-charge technical assistance provided by EIB Advisory under the Social Inclusive Finance Technical Assistance (SIFTA) programme, financed by the InvestEU Advisory Hub. Launched in 2022, the SIFTA programme has supported around 60 microfinance and credit institutions across more than 20 EU countries, aiding in investment preparation, portfolio analysis, and the creation of a pipeline of operations for high social impact companies.
“Banca Etica's goal is to finance the social economy by supporting the businesses and people most at risk of financial exclusion, including refugees and women. It is important for us to be the first Italian bank to sign an agreement with the EIB to do even more in this domain,” said, for her part, Banca Etica President, Anna Fasano.
“This agreement is a key step forward in backing three important pillars of the future of Italy and Europe: gender equality, better living conditions and social inclusion for refugees, and economic development in Southern Italy,” added EIB Vice-President Gelsomina Vigliotti. “Via our financial support and advisory services, the EIB is committed to supporting the real economy, fostering inclusive growth and a more equal and sustainable society.”
