The Exit Door Swings Wide: NZBA Hemorrhages Members, Then Shuts

The exit door at the Net Zero Banking Alliance (NZBA) has been swinging wide open for months, as the group hemorrhaged members at an alarming rate. Now, with too few members left inside, the alliance has been forced to turn off the lights and shut the doors for good.
The stampede for the exit began late last year, triggered by a changing of the guard in US politics. The re-election of Donald Trump made membership in the climate-focused alliance a risky proposition, and the industry’s biggest names were the first to rush for the door.
The initial wave saw the six largest US banks, from JPMorgan Chase to Wells Fargo, all exiting in a coordinated rush. Their departure created a panic that proved contagious, fatally wounding the organization and putting a permanent “Exit” sign over its future.
The hemorrhage continued steadily throughout the year. Banks in Europe and Japan, seeing the lifeblood of the alliance draining away, also decided to leave. The final, fatal blows came this summer with the departures of UK giants HSBC and Barclays.
The story of the NZBA’s demise is a simple one of critical mass. An alliance is only as strong as its membership, and once the exodus began, it could not be stopped. The group bled out, leaving behind a lesson about the instability of voluntary coalitions in a politically volatile world.