Sweden’s JAK Bank Liberating community finance from the ball & chain of compound interest

From book The Resilience Imperative – Co-operative Transitions to a Steady-state Economy, by Mike Lewis and Pat Conaty

Michael Lewis, Patrick Conaty, 2012

To download : PDF (470 KiB)

Summary :

Debt, manufactured by banks without the backing of real assets and inflated over time through compound interest, redirects the wealth created in the productive economy to a non-productive financial sector. Over the last 200 years, several alternative, interest-free financing mechanisms have grown up. One of the most successful is a Swedish savings and loan co-operative, the JAK ("Land Labour Capital") members’ bank. By disconnecting finance from compound interest, JAK seeks to turn money from a store of value into a genuine medium of exchange that builds real wealth and sustainable and flourishing communities.

JAK is like a credit union, except that members do not earn interest on their savings or dividends on their shares. Instead, they earn one savings point per dollar they save. The maximum they can borrow is based on the number of points they have accumulated prior to a loan (pre-savings) and contract to accumulate after receiving a loan (post savings). Every loan is backed by the savings of other members. JAK members also can easily establish targeted savings accounts, or Local Enterprise Banks, in order to finance social or ecological enterprises. - See more at: communityrenewal.ca/swedens-jak-bank#sthash.wkVwHY0q.dpuf

Sources :

Canadian Center for Community Renewal CCCR communityrenewal.ca/about

See also: