Cooperative for Ethical Financing (ZEF)

The Cooperative for Ethical Financing (ZEF) is a non-profit cooperative based in Zagreb, Croatia, founded in 2014 with the aim of establishing Croatia’s first ethical development bank, known as Ebanka. The cooperative emerged in response to growing concerns over traditional banking practices and the desire for financial systems emphasizing transparency, sustainability, and community benefit. ZEF’s founding group consisted of 101 individuals and organizations, growing to more than 2,800 members by 2021. Approximately 60 percent of these are individual members from across Croatia—including members of the Croatian diaspora—and 40 percent are legal entities, with about a third being non-profits such as religious organizations and civic groups. This diverse membership base is among the most cross-sectional in Croatia, encompassing various political, economic, and religious backgrounds. The core of ZEF’s activities revolves around providing ethical banking alternatives. It offers microloans for social entrepreneurs, pre-financing for local action groups, and accounting services for cooperatives. Beyond financial tools, ZEF delivers business consulting and support for accessing EU grants and funds tied to social or environmental objectives. Members benefit from internal networking, educational opportunities, and a proprietary electronic wallet for swift internal transactions. ZEF is democratically controlled by its members, who influence strategy and practices directly. Despite facing significant regulatory hurdles in securing a banking license, the cooperative has established itself as a focal point for those seeking financial systems that prioritize community well-being and social impact over profit maximization.