Abstract

This conceptual paper explores and compares the ethical dimension of Islamic and so-called ethical banks. The investigation is made in two succeeding steps. First, an individual analysis as regards the respective level of correspondence between ethical principles and business practice. For the latter, a time-based perspective is adopted. Second, a side-by-side comparison of their overall “ethical coherence gap”. The results show that this gap is wider in the case of Islamic banks. The final part of the paper draws up three different scenarios for future development of these financial institutions where their ethical coherence is enhanced.