IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v32y2014icp106-121.html
   My bibliography  Save this article

Ruthless compassion in banking and finance

Author

Listed:
  • Faugère, Christophe

Abstract

Beyond the severe economic impact, another consequence of the 2008 financial crisis is the worldwide indignation felt toward the finance industry for its direct involvement in creating this crisis. It is now a befitting question to ask: What, if any, is the noble purpose of finance? I apply the definition of noble as used in Buddhism. I introduce the Buddhist concept of Ruthless Compassion, taught by Tibetan Master Chögyam Trungpa Rinpoché. I assert that Ruthless Compassion is a valuable quality for the job of banker or financier, as it is another tool available to reduce the costs associated with the typical asymmetry of information. A preliminary inquiry is launched into whether this concept can serve as a stepping stone for defining a new value system easily applicable in the finance industry.

Suggested Citation

  • Faugère, Christophe, 2014. "Ruthless compassion in banking and finance," Research in International Business and Finance, Elsevier, vol. 32(C), pages 106-121.
    • Handle: RePEc:eee:riibaf:v:32:y:2014:i:c:p:106-121
    DOI: 10.1016/j.ribaf.2014.03.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531914000154
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2014.03.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Broz, J. Lawrence & Grossman, Richard S., 2004. "Paying for privilege: the political economy of Bank of England charters, 1694-1844," Explorations in Economic History, Elsevier, vol. 41(1), pages 48-72, January.
    2. Andrea Bassanini & Stefano Scarpetta, 2003. "The Driving Forces of Economic Growth: Panel Data Evidence for the OECD Countries," OECD Economic Studies, OECD Publishing, vol. 2001(2), pages 9-56.
    3. Reinhart, Carmen M. & Rogoff, Kenneth S., 2013. "Banking crises: An equal opportunity menace," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4557-4573.
    4. Clive R. Boddy, 2011. "The Corporate Psychopaths Theory of the Global Financial Crisis," Palgrave Macmillan Books, in: Corporate Psychopaths, chapter 14, pages 163-166, Palgrave Macmillan.
    5. Charles P. Kindleberger & Robert Z. Aliber, 2005. "Manias, Panics and Crashes," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-0-230-62804-5.
    6. Philippe Aghion, 2005. "Growth and Institutions," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(1), pages 3-18, March.
    7. Renström, Thomas I & Marsiliani, Laura, 2003. "Inequality, Environmental Protection and Growth," CEPR Discussion Papers 3754, C.E.P.R. Discussion Papers.
    8. Andrea Bassanini & Stefano Scarpetta & Philip Hemmings, 2001. "Economic Growth: The Role of Policies and Institutions: Panel Data. Evidence from OECD Countries," OECD Economics Department Working Papers 283, OECD Publishing.
    9. Guillaume PASTUREAU, 2013. "De l’usage social aux pratiques marchandes de l’argent. Une brève histoire des origines du microcrédit social," Cahiers du GREThA (2007-2019) 2013-14, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    10. Clive Boddy, 2011. "The Corporate Psychopaths Theory of the Global Financial Crisis," Journal of Business Ethics, Springer, vol. 102(2), pages 255-259, August.
    11. Barbu Teodora Cristina & Boitan Iustina Alina, 2009. "The Financial Crisis Impact On Ethical Financial Institutions," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 3(1), pages 467-473, May.
    12. Ashcraft, Adam B. & Schuermann, Til, 2008. "Understanding the Securitization of Subprime Mortgage Credit," Foundations and Trends(R) in Finance, now publishers, vol. 2(3), pages 191-309, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dancsik, Bálint, 2020. "Rendszerszintű kockázat rendszerszintű erkölcs nélkül. Kiegészítések a pénzügyi válságok etikai magyarázatához [Systemic risk without systemic ethics. Supplements to the ethical explanation of fina," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 225-243.
    2. Paulo M.M. Rodrigues & Rita Fradique Lourenço, 2015. "House prices: bubbles, exuberance or something else? Evidence from euro area countries," Working Papers w201517, Banco de Portugal, Economics and Research Department.
    3. Alberto BUCCI, 2004. "Economic growth in an enlarged Europe: the human capital and R&D dimensions," Departmental Working Papers 2004-22, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    4. Mr Clive Boddy & Mr Derek Bond & Dr Elaine Ramsey, 2010. "Projective Techniques Are they a Victim of Clashing Paradigms," Accounting, Finance and Economics Research Group Working Papers 1, Ulster Business School.
    5. Kaushik, Surendra K. & Kaushik, Shorav & Kaushik, Shobha, 2006. "How higher education in rural India helps human rights and entrepreneurship," Journal of Asian Economics, Elsevier, vol. 17(1), pages 29-34, February.
    6. van Hoorn, Andre, 2015. "Organizational Culture in the Financial Sector: Evidence from a Cross-Industry Analysis of Employee Personal Values and Career," MPRA Paper 67222, University Library of Munich, Germany.
    7. Ulrich van Suntum, "undated". "Economic Confidence, Negative Interest Rates, and Liquidity: Towards Keynesianism 2.0," Working Papers 200108, Institute of Spatial and Housing Economics, Munster Universitary.
    8. Andrea Bassanini & Stefano Scarpetta, 2003. "The Driving Forces of Economic Growth: Panel Data Evidence for the OECD Countries," OECD Economic Studies, OECD Publishing, vol. 2001(2), pages 9-56.
    9. Nicos A. Scordis & Yoshihiko Suzawa & Astrid Zwick & Lucia Ruckner, 2014. "Principles for Sustainable Insurance: Risk Management and Value," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 17(2), pages 265-276, September.
    10. Castro, Vítor, 2010. "The duration of economic expansions and recessions: More than duration dependence," Journal of Macroeconomics, Elsevier, vol. 32(1), pages 347-365, March.
    11. Zaijun Li & Jianquan Cheng & Qiyan Wu, 2016. "Analyzing regional economic development patterns in a fast developing province of China through geographically weighted principal component analysis," Letters in Spatial and Resource Sciences, Springer, vol. 9(3), pages 233-245, October.
    12. Rachel Fichter, 2018. "Do the Right Thing! Developing Ethical Behavior in Financial Institutions," Journal of Business Ethics, Springer, vol. 151(1), pages 69-84, August.
    13. van Suntum, Ulrich, 2009. "Economic confidence, negative interest rates, and liquidity: Towards Keynesianism 2.0," CAWM Discussion Papers 24, University of Münster, Münster Center for Economic Policy (MEP).
    14. Mohammed Hossain & Yasean A. Tahat & Naser AbuGhazaleh, 2024. "Unlocking the Sustainable Workplace Equality Policy (SWEP): Evidence from an Emerging Country," Sustainability, MDPI, vol. 16(2), pages 1-22, January.
    15. Joseph Pasky Ngameni & Ludovic Feulefack Kemmanang & Sylvain Bertelet Ngassam, 2022. "Growth Gap between China and Africa: Do Digital Technologies Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 24-43, March.
    16. Aida Caldera Sánchez & Morten Rasmussen & Oliver Röhn, 2016. "Economic Resilience: What Role for Policies?," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(02), pages 1-44, June.
    17. Jakob Moggia, 2021. "Moral Responsibility for Systemic Financial Risk," Journal of Business Ethics, Springer, vol. 169(3), pages 461-473, March.
    18. Aurel Burciu & Rozalia Kicsi & Ionel Bostan & Iulian Condratov & Cristian Valentin Hapenciuc, 2020. "Sustainable Economic Growth Based on R&D Amplification and Technological Content of Exports. Evidences from Romania and The V4 Economies," Sustainability, MDPI, vol. 12(5), pages 1-17, February.
    19. Edward J. Schoen, 2017. "The 2007–2009 Financial Crisis: An Erosion of Ethics: A Case Study," Journal of Business Ethics, Springer, vol. 146(4), pages 805-830, December.
    20. Roman Arjona & Maxime Ladaique & Mark Pearson, 2003. "Social Protection and Growth," OECD Economic Studies, OECD Publishing, vol. 2002(2), pages 7-45.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:32:y:2014:i:c:p:106-121. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.