JAK member bank

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Logo of the JAK

The JAK Member Bank ( Swedish : JAK Medlemsbank) is the first bank in Sweden to implement an interest-free banking system for its members.

The abbreviation JAK stands for the Swedish words Jord , Arbete and Kapital , in German Land, Arbeit, Kapital. The bank was founded in 1965 as a cooperative savings and loan association and received official bank status in December 1997.

According to its own statement, the main task of the cooperative is to provide members with interest-free savings loans. In 2007 the cooperative had 33,000 members (2005 = 28,000), which were attended to by 550 local representatives and 28 branches across Sweden. The bank deposits in 2007 amounted to approx. 87 million euros ; the loans issued approx. EUR 76 million. The institute is based in Skövde .

functionality

In principle, the JAK Bank works like a building society , in which the members' money is pooled and loaned to one another. However, no credit or credit interest is paid.

Using a numerical example, it becomes clear how the interest-free savings loan differs from classic mortgage financing . For conventional financing of 100,000 euros at an interest rate of 4.5 percent with 10 percent repayment , the borrower pays a monthly installment of approx. 1,200 euros for 8.3 years (100 installments) and has a total expense of interest and at the end of the term Repayment of just under 120,000 euros. Instead of the 100 installments with interest and repayment, the borrower pays the JAK Bank 16.6 years (200 installments) at EUR 1,000 each and at the end of the term receives the EUR 100,000 that was additionally saved over the original loan amount back without interest.

The member has received the same amount as an interest-free loan that he then saved up without interest. The double total term compared to conventional loans enables others to participate in the interest-free banking system, but the partial amounts can also be made available to other members as an interest-free loan during the repayment phase.

The bank's administrative and risk costs are covered by fixed membership fees and fees, which, unlike interest rates, are not subject to fluctuations on the capital market. Since some of the banking tasks are performed by the members on a voluntary basis, the fees are low in comparison. For a private building loan, they correspond to an effective annual interest rate between 1.5 and 2.5 percent. However, this cannot be compared with the interest rate of commercial banks, as the credit interest that the customer of the JAK member bank waives must be added as opportunity costs .

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Coordinates: 58 ° 23 ′ 4.9 "  N , 13 ° 50 ′ 31.4"  E