“We couldn’t have done it without you,” she said. The DBJ and Scotiabank have partnered in the past on MSME initiatives. In 2015, the DBJ loaned more than $785 million to 50 MSMEs through Scotiabank. Seventyone Scotia business customers got financial statements business plans and other services through DBJ’s voucher for technical assistance programme. The VTA is a DBJ capacity development grant that gives MSMEs access to specific business development products and services from an accredited list of business development organizations. The DBJ finances 70% of the cost up to $500,000 so that business can better access credit to grow. Tracey explained that Scotiabank issued DBJ’s first voucher, to Norsai Distributors, for a loan of $30 million. Norsai was then able to hire 60 fulltime and 130 part-time employees. “The DBJ will use the psychometric and business data derived from the firms to better position our intervention programmes to help MSMEs to expand, be more efficient, profitable and sustainable,” says Tracey. “We expect Scotiabank will use the psychometric credit scoring tool to enhance its credit appraisal system for MSME lending.” Other project partners in SERMaF include the Inter-American Development Bank (IDB) and the Institute of Law and Economics. Click this link to LIKE US ON FACEBOOK
To remain compliant with the Banking Services Act, passed last year, JN proposed a structure to the BOJ, which will enable members to be shareholders of a single mutual holding company to own all JN assets, Jarrett explained. “We have been careful to ensure that our members are not short changed in the process, and that the concept of ‘mutuality’ will remain a principal focus at the core of the new structure,” he said. Under its proposed structure, the building society will transition to a commercial bank, which, along with other regulated companies in the JN Group, will be owned by a financial holding company. The ownership of the remaining non-regulated companies will be assumed by a non-financial holding company. Both financial and non-financial holding companies will be fully-owned by the mutual holding company. Jarrett stated that the conversion of JNBS to a commercial bank will allow the organisation to offer a more competitive and expanded range of credit products and services, beyond the options which building societies now offer. And, he emphasised that the change was also necessary for the organisation to maintain its relevance. “We have to change because legislative modifications, such as the Banking Services Act, require the separation of risks associated with financial and non-financial operations within groups of companies. We have to change because our customers are demanding more financial services than the Building Societies Act allows us to offer. We have to change, because, if we do not move with the times, we will indeed become irrelevant,” he sermonised. JNBS and its subsidiaries performed reasonably during the 2014-2015 financial realising a net surplus of $1.21 billion. CLICK here to LIKE OLD HARBOUR NEWS ON FACEBOOK
Scotia Bank Senior Vice President for English Caribbean International Banking, Bruce Bowen, noted that Jamaica is among the three most watched economies in the English-speaking Caribbean. “As you speak to people across the Caribbean, Jamaica (is being) talked about… as an example of when tough decisions are made, when a society as a whole… comes together, what is possible,” he said. Citing positive developments in Montego Bay, in particular, Mr. Bowen said: “if you go across the Caribbean, there are probably only two other places that … appear to be economically booming like Montego Bay. Cayman is one of them and you get a little bit like that in St Maarten as well. That shows the vibrancy of the economy, the vibrancy of the people and the entrepreneurs in this area.” Both executives agreed that it was Scotia Bank’s experience in Jamaica that had shaped the bank’s regional and global outlook resulting in its presence in over 50 countries and ranked, by Market Capitalisation, among the 20 largest global banks. Minister Phillips, who was the keynote speaker at the ceremony, commended the bank for its significant investment in western Jamaica, describing its new facilities as an example of its commitment to growth.