JARRETT… this is a major achievement for us
Finance Minister Dr Peter Phillips has granted approval for Jamaica National Building Society (JNBS) to be converted to a commercial bank.
The minister’s approval was received in a letter to the Society recently, following the organisation’s re-submission of its application in November 2013, JNBS said in a news release yesterday, adding that its first application for a commercial banking licence was made in 2008.
“This is a major achievement for us,” the news release quoted JNBS General Manager Earl Jarrett. “We have come a long way since our first application seven years ago, and we are definitely committed to repositioning JN to better serve our members.”
Jamaica National, the release said, will become the third largest commercial bank in Jamaica when it completes its conversion, with 12.8 per cent of the market, behind National Commercial Bank and Scotiabank with approximately 36 per cent and 26 per cent, respectively.
Jarrett said that the conversion was being undertaken against the background of increased demand from the Society’s members for an expanded range of credit products and services, which building societies cannot legally offer. These product and service offerings include certain types of personal loans and chequing accounts.
Jarrett indicated that the ministerial approval also gives the Society the clearance to reorganise its group, which comprises several companies offering a wide variety of financial and non-financial products and services. The reorganisation is to achieve compliance with the Banking Services Act.
However, he indicated that both the Society’s conversion and the JN Group reorganisation will need the approval of its members to move forward.
“We have, therefore, been making the necessary operational changes, which must be implemented to make the change possible; and we are ready to reposition Jamaica National to successfully chart another 141 years as a bona fide member of the commercial banking sector,” Jarrett said.
Published By: The Observer
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