Abstract
Financing of human activity through borrowing from third parties is widespread in the Western world. Such financing may give rise to several questions of moral and ethical character. The ethical underpinnings of such banking activity are somewhat unclear and not uniform among the involved actors. Christian thinkers have been divided as to what moral norms should apply and, traditionally, the matter has been discussed mostly in connection with the level of interest charged by the lender to the borrower. In this article, banking is illuminated from different angles, including questions regarding the moral defensibility of lending and borrowing, the taking and posting of collateral, third party guarantees and the level of interest that may be charged. A new banking system is proposed, whereby banking is given a constructive and participatory societal place in concert with sound Christian-ethical and pastoral principles. This new banking paradigm is named Pastoral Banking Practice (PBP) to emphasise its Christian-ethical and pastoral foundations.
Highlights
Within the economic sphere of individuals and societies, activities need be financed, whether they be commercial enterprises or expenditures of a private nature such as, for example, purchasing dwellings or paying for education, or to consume for self-subsistence
The authors present a banking system where credit may be utilised in concert with Christian-ethical and pastoral principles which is meant as a moral guide for Christians involved in lending and borrowing
This system is termed Pastoral Banking Practice (PBP) and its foundations within reformed theology will be investigated in this article
Summary
Within the economic sphere of individuals and societies, activities need be financed, whether they be commercial enterprises or expenditures of a private nature such as, for example, purchasing dwellings or paying for education, or to consume for self-subsistence. This article illustrates how credit extension and financing are always value-driven, and that banking practices may beneficially be performed according to Christian-ethical and pastoral principles, and yet remain useful in a societal commercial context.
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