A social movement that is also a bank (JAK Member Bank, Sweden)

There was once a cooperative made up of 36 500 members that owned a bank. A bank through which the members of the cooperative lent each other money interest-free. This is not a fairy-tale. The bank exists in Sweden and is called JAK Medlemsbank (www.jak.se/int). The bank’s offices are spread out all over the country; in each member’s home, in every workshop, every orchard… JAK is an association as well as a bank but, above all, it is a social movement. A social movement born in 1965 that just keeps on growing.
Loaning money interest-free is nothing new. Take, for example, a family or a group of friends. The novelty lies in the size of the group. This is not about 5, 10 or 15 people, but rather 36 500 (approximately 1500 new members per year).
One of JAK’s criticisms against interest is that it is detrimental to 90% of the population:

In this graph, we have divided the Swedish population into 10 groups each comprising 900 000 persons. At the far left we have the 900 000 poorest people and at the far right, the 900 000 wealthiest people. The orange columns represent the interest that that group of people earned during 2003 and the green columns represent the interest that said group paid during the same period of time. The only sector of society that has benefited from the fact that our savings/lending system is run on interest is the wealthiest sector. In other words, 90% of us are losing out while 10% are gaining.
JAK’s loans are not free. In order for them to be so, the cooperative would have to function purely based upon the work of volunteers. Although that was the case in the beginning, the time arrived when the number of members grew to a point that the cooperative had to become professionalized. Today, JAK has approximately 30 paid employees. Apart from this, JAK has other fixed costs. Thus, JAK is a cooperative that offers a professional service to its members. In order to pay for this service, the beneficiaries of loans must pay an administrative fee. This is the actual cost of the loan.
To ensure that the system does not stagnate and that our members can benefit from interest-free loans, JAK attaches a compulsory savings clause to its loans. In short, if you borrow 50 000 Euros to be paid back over a period of 20 years, JAK requires you to save another 50 000 Euros in a parallel, locked account. When you have finished paying off the loan, JAK unlocks the account and gives you access to your 50 000 Euros. What has JAK done with your money during this time? Lent it to other members!
JAK is a democratic cooperative that places a lot of importance on the education of its members. It invests in its members, not in publicity. The members attend courses organized by JAK and, this way, they are better able to give information on the bank to all their contacts. JAK also supports projects attempting to take similar initiatives in other countries. An Italian association (www.jakbankitalia.it) is presently undertaking such an endeavour.
Links for more information:
www.jak.se/int

http://nocreceenlosarboles.blogspot.com
Original Spanish article by Miguel Ganzo Mateo (miguel.ganzo@jak.se)
Translated by Emmanuelle Sylvain (emsylvain@gmail.com)