Greek Elected President of European Ethical Banking Federation

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Panagiotis Tournavitis, CEO of Cooperative Bank of Karditsa, has become the first Greek banker to lead the European Federation of Ethical and Alternative Banks and Financiers (FEBEA), highlighting the growing role of ethical finance in Europe.

Can a bank assess financing not only through financial returns and credit risk but also through its impact on society, local economies and the environment?

That question lies at the heart of Europe’s ethical and alternative banking sector, which now has €79 billion in assetsand plays an increasingly important role in financing the social economy.

The European Federation of Ethical and Alternative Banks and Financiers (FEBEA) represents the sector at European level. Banks and financial organisations established the federation in Brussels in 2001 to cooperate, share expertise and gain a collective voice at the European level.

Today, FEBEA has more than 30 members from almost 20 countries, including banks, cooperatives, foundations, funds, microfinance organisations and socially oriented investors.

Although these organisations operate under different business models, they share a common objective: directing capital towards the real economy and projects that deliver measurable social or environmental benefits.

A €79 billion European market

FEBEA has evolved from a cooperation mechanism among its members into an established partner of major European institutions, including the European Investment Bank, the European Investment Fund, the Council of Europe Development Bank and the European Commission.

Speaking to the Athens-Macedonian News Agency, newly elected FEBEA President Panagiotis Tournavitis said this cooperation extends beyond institutional representation. It has produced technical assistance programmes, guarantee mechanisms and joint financial instruments that smaller federation members could not access independently.

“FEBEA acquired a voice and became something more than a federation: a collective force,” Tournavitis said.

The main difference between ethical and conventional finance lies in how institutions assess an investment.

A small cooperative, social enterprise, renewable energy community or affordable housing project may represent a relatively small loan, higher assessment costs and limited profit potential for a conventional lender.

For FEBEA members, however, the assessment also considers local development, employment and the wider social impact of the investment.

Greek banker takes the FEBEA presidency

At FEBEA’s General Assembly in Venice on September 25, Tournavitis was unanimously elected president for a three-year term.

The election carries particular significance for Greece because the Cooperative Bank of Karditsa became FEBEA’s first Greek member a decade ago.

Farmers, small traders and entrepreneurs in Thessaly founded the bank 32 years ago. It now serves more than 60,000 customers, has 18,500 members and holds assets approaching €400 million.

“When we first knocked on FEBEA’s door ten years ago, we were its first Greek member,” Tournavitis said.

He recalled that the bank was then a small institution far from Brussels and came from a country whose financial system had become synonymous with the crisis.

“FEBEA did not ask us how big we were. It asked us what we believed in,” he said, adding that the federation treated the Greek bank as an equal, allowed it to learn from leading European institutions and, a decade later, entrusted it with the organisation’s leadership.

During that period, the Cooperative Bank of Karditsa navigated Greece’s debt crisis, capital controls, the COVID-19 pandemic and two devastating floods within three years, while continuing to finance the local economy.

Closing the social economy’s financing gap

The sector now faces the challenge of addressing the financing gap that continues to affect organisations within the social economy.

According to Tournavitis, an EIB market study presented at the conference confirmed the need for financial partners that understand the particular characteristics of these organisations and can translate European policy priorities into practical financing solutions.

He pointed to the Action Plan for the Social Economy, the Affordable Housing Plan, the Strategy to Combat Poverty, InvestEU, SIFTA technical assistance, EIF guarantee products and loans and grants from the Council of Europe Development Bank as practical tools that FEBEA members already use.

Greater cooperation among members

FEBEA also wants to deepen cooperation among its members.

At the FEBEA Marketplace Workshop, organisations with surplus liquidity connected with members that had mature projects and financing needs. Members with specialist expertise also worked directly with organisations facing specific challenges.

Tournavitis said he wants this cooperation to expand until financial collaboration among members becomes a daily practice rather than something limited to individual workshops.

Technology without losing local connections

Technology represents another priority for the sector.

Even a small regional bank can now offer digital products, instant payments and data-driven financing.

“Digital technology is not the enemy of proximity. If used correctly, it creates proximity on a larger scale,” Tournavitis said.

For ethical and alternative banks, the challenge lies in using new technologies while maintaining close relationships with the local communities and businesses they finance.

FEBEA’s new leadership will serve for the next three years, with priorities including expanding access to European financing tools, strengthening cooperation between members and making greater use of technology.

Tournavitis’ election marks the first time a representative of a Greek bank has assumed the presidency of the European Federation of Ethical and Alternative Banks and Financiers.

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