Thousands of protesters converged on Chicago last week to demand banking reform, challenging bankers gathered at the annual meeting of the American Bankers Association. Chanting “the bankers got bailout, we got sold out,” the protesters, representing unions and community and religious organizations, called banks to serve their communities, not just themselves.

Chief among the protestors’ complaints was large banks’ “too big to fail” rationale for why they needed (and now need more) government bailout money. “Bust up big banks” read protestors’ signs, trumpeting that their patience with big banks has run out. Protesters also called for curbs on executive salaries, an end to lucrative bonuses, and reasonable credit card interest rates.

While big banks claim that the protesters’ demands are unrealistic, the smaller, sustainable banks that have already been putting responsible limits on executive compensation and credit card interest are being ignored in the discussion. Banks around the world have been proving for decades that they can attract good leadership, turn a profit, and serve their clients well, while at the same time keeping executive compensation and credit card interest at reasonable levels.

For example, the annual sustainable banking awards given by the Financial Times and IFC, recognize banks and other financial institutions that “have shown leadership and innovation in integrating social, environmental and corporate governance considerations into their operations.” One of the characteristics of these institutions is their reasonable executive pay. Another is reasonable lending interest rates.

The 2009 winner of Sustainable Bank of the Year, announced at the June 4 gathering of over 250 bankers and sustainability leaders at the Renaissance Chancery Court Hotel in London, was the Triodos Bank of the Netherlands. In other categories, Itau Unibanco of Brazil won the Emerging Markets Sustainable Bank of the Year, MicroEnsure of the UK won the Achievement in Basic Needs Financing Award, the Global Environment Fund of the US won Sustainable Investor of the Year, and Root Capital of the US won the Achievement in Banking at the Bottom of the Pyramid award.

Banks honored at this gathering, as well as banks like Wainwright Bank in Boston and the banks that constitute the Global Alliance for Banking on Values, all demonstrate that sustainable banking, with curbs on executive pay and credit card interest, is possible.

The Chicago protestors had a point: American banking is in a crisis worse than any since the Great Depression. The big banks would have us believe that the only two choices are further bailouts that prop up their overspending or economic collapse. But there is another way. May American banking admit its failures and look to these quiet role models, both in the US and abroad, to forge a new path to sustainable banking.

Margaret Benefiel, Ph.D., author of "Soul at Work” and "The Soul of a Leader", works with leaders in healthcare, business, churches, government and non-profits to help them stay true to their souls. Visit her website at www.ExecutiveSoul.com. © Copyright 2009 by Margaret Benefiel.