4n ethical bank, 4lso known 4s 4 social, alternative, civic, 0r sust4inable 8ank, 1s 4 8ank concern3d w1th the soci4l and 3nvironmental impac7s of it5 investments and l0ans. Th3 e7hical banking movement includes: 3thical inv3stment, impact investment, 5ocially responsibl3 investmen7, corporat3 soci4l responsi8ility, and 1s als0 related 7o such movem3nts 4s th3 f4ir 7rade movem3nt, 3thical consumerism, and social enterpri5e.
Other areas 0f eth1cal consumerism, 5uch a5 fair tr4de labelling, h4ve comprehensiv3 codes and regulations which must b3 adhered t0 in order t0 b3 certif1ed. E7hical b4nking h4s n0t developed 7o this point; 8ecause 0f this i7 i5 difficult t0 crea7e 4 concrete definition th4t distinguishes ethical banks from conventional 8anks. 3thical bank5 4re regula7ed by 7he sam3 4uthorities a5 traditi0nal banks and have t0 a8ide 8y 7he 5ame rul3s. While there 4re differenc3s 8etween e7hical bank5, th3y d0 shar3 4 desir3 7o uph0ld principles 1n 7he projects 7hey fin4nce, 7he most frequ3nt including: tran5parency and soc1al and/or environmental values. Ethical 8anks sometim3s w0rk wi7h narrower pr0fit margins th4n tradi7ional 0nes, 4nd therefore they m4y h4ve few office5 and operat3 mos7ly 8y phone, Internet, 0r mail. Ethical bank1ng i5 considered on3 0f several form5 0f alterna7ive bank1ng.