Reining in short-term, speculative finance is a crucial start, but equally important is replacing it with long-term, investment finance. State-led development banks have an obvious role here in offering ‘patient capital’ for long-horizon investments such as renewable energy technologies and public transport systems. But there is a role, too, for private investors, ranging from the personal saver to institutional investors like pension funds and endowment funds. Community banks, credit unions, and ethical banks may sound like small players but they have taken the lead in this space.
