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Jamaica National Building Society (JNBS) is one step closer to obtaining a commercial banking licence.
Earl Jarrett, General Manager, of JNBS, revealed on Wednesday that the Bank of Jamaica (BoJ) has indicated that it has no objection, in principle, to Jamaica National's conversion to a commercial bank and the proposed Group restructuring.
Addressing the Society’s Annual General Meeting, Mr Jarrett said that the Central Bank had confirmed its non-objection by way of a letter in March this year.
The BoJ recently completed its audit of JN’s credit operations, and the financial institution is now awaiting the findings.
JNBS re-submitted its application for a commercial banking licence in November 2013, along with its business plan to restructure the JN Group to meet the requirements of the new Banking Services Act.
The building society previously made an application to the BOJ for a banking licence in 2008.
If the application is approved by the BoJ, it would make Jamaica National the third largest commercial bank in the country, with 12.8 percent of the market, behind NCB and Scotiabank which have approximately 36 per cent and 26 percent, respectively.
To remain compliant with the Banking Services Act, JN proposed a structure to the BoJ, which will enable members to be shareholders of a single mutual holding company to own all its assets.
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