ABSTRACT

In this chapter, the authors explain the intermediation approach as their basic model of banking. They show that conception and their way of operationalizing the new measure. Afterwards, the developed measure is demonstrated using GLS Bank as an example. The authors focus on social banking –also called sustainable, ethical, or green banking – and hence on financial intermediation. The intermediary acts as a third party between lenders and borrowers. Social banks could be reliable information providers to overcome the problems of information asymmetries between customers and companies in general. The requirements for a new and more suitable growth measurement approach are deduced from the relevant literature on companies' and banks' growth. M. Weber concretizes the role of social banks in the creation of social and ecological impact as follows: 'Social banks provide financial services to individuals and organizations that create social, environmental or sustainability benefits.'