JN Bank supersizes loans, causes rates to fall

The Bank of Jamaica (BOJ) indicates in its new quarterly monetary policy report (QMPR) that the island’s newest commercial bank made loans which added appreciably to the stock of private loans for the March 2017 quarter, with private sector credit almost doubling expected growth during the period to $115 billion.The new entrant also caused rates to fall, the BOJ indicates. Overall, the BOJ noted, lending to households grew relatively faster at 42.9 per cent compared to growth of 17.1 per cent in business loans.

The BOJ notes that the annual growth in private sector credit at end-February 2017 was 30.7 per cent, which was stronger than the expansion of 10.0 per cent and 14.8 per cent in February 2016 and December 2016, respectively.

Much of this expansion reflected the impact of a new entrant to the commercial banking sector in February 2017.

Jamaica National Building Society converted to commercial banking on February 1, becoming the island’s third largest bank in the category by assets.

Managing Director Maureen Hayden-Cater indicated that the bank would open business with preferred rates on auto loans, a lower-cost credit card, and unsecured loans at rates which were below market average.

Hayden-Cater also said that fees for services would be lower than market average, while some services would not attract fees at all.

http://www.jamaicaobserver.com/business/jn-bank-supersizes-loans-causes-rates-to-fall_99948