ShoreBank Corporation: Let’s Change the World

Abstract

ShoreBank was a ‘different bank’ from inception. Over the course of 37 years, it became an example of how the market-based financial system can, under the right conditions, be deliberately and effectively used to create social change. Founded in 1973 by four idealistic business partners, ShoreBank became a model of responsible community investing and a symbol of the determination of a small band of progressive business leaders to change the world. ShoreBank has been an inspiration to several generations of socially conscious entrepreneurs, but the power of its vision never insulated the bank from the realities of the banking industry or the vagaries of the larger economy. Indeed, for most of ShoreBank’s history, it struggled to be a progressive force for community investment amid the turbulence of a dynamic industry. ShoreBank’s success was never guaranteed, but it succeeded for the majority of its 37 years through a combination of astute management, a compelling mission, and progressive business practices. The Great Recession of 2008–10, however, generated a tsunami of economic forces that swamped ShoreBank. Preserving the bank’s mission, culture, and core values amid the greatest banking crisis since the Great Depression required both exceptional banking skills and a fierce determination by its stakeholders that ShoreBank survive as a force for community development in the new economy. In the summer of 2010, ShoreBank’s struggle to survive in its original form came to an end. Its legacy, however, lives on, and it remains a story of vision and achievement.