We are a nation of bank bashers but in reality Australia's banks stand out as the most socially responsible in the world. "Australian banks are finding new ways to reach out to indigenous and low-income communities, and their action on climate change stands out compared to other industries," says judging panel chair Mara Bun. 

Indeed, on a world scale our banks are institutions we can all be proud of.

"The strength of the Australian banks (at least the largest) is now obvious to all," says judge Francis Grey. "What matters is how they maintain that leadership edge. Success can breed complacency - and continued achievement will be marked by the ability to restlessly push forward. The leadership challenge of this year will be how responsibly these leading banks now treat their considerable pricing power in the Australian market."

ANZ, Westpac and NAB are among the 30 Dow Jones Sustainability Index banking leaders chosen from among 300 banks worldwide. ANZ is rated number one and Westpac is considered to be very close behind as number two in this group of 30 leading banks.

But that is not to say they cannot do better, particularly in providing environmentally friendly products. And the new challenge is supporting customers in a global economic downturn. To judge this award Money invited submissions detailing initiatives, programs and products the banks had in place for young, low-income earners, indigenous Australians and the environment. We also asked them about their responsible lending policies and practices and their responsible fee structure and credit management.

All four of the big banks entered and Money also received some entries from smaller institutions, including the Savings and Loans Credit Union, which got a tick of approval from the judging panel for showing that size is not a barrier. Indeed, in the scoring for the award S&L was ahead of one of the Big Four.

"They may be small but they are very targeted in what they do," says Elsa Atkins. The panel singled out S&L's involvement in the Red Cross Breakfast club program and its Green car loan product for praise. All submissions were of a high standard, reflecting the seriousness with which the banks view these awards. The overall winner is ANZ.

"We congratulate the ANZ for taking indigenous engagement seriously, providing world-class support for low-income earners by helping them to save and manage their money confidently, and significantly supporting renewable energy with project finance," Bun says.

 

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