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JNBS members to vote on transition November 14

Published:Wednesday | October 19, 2016 | 12:00 AM
Earl Jarrett, group general manager of Jamaica National Building Society.

Jamaica National Building Society (JNBS) has set November 14 for a special meeting at which members will vote on plans to reorganise the group amid its transition to a commercial bank.

Assuming a vote in favour of the resolution now being circulated, the financial group plans to convert the society to a company to be called JN Bank Limited.

The change is encapsulated in a new Scheme of Arrangement for the entire group that members must also vote to approve at the meeting set to take place at the Jamaica Conference Centre in Kingston. The Supreme Court sanctioned the plan on September 22, and gave the go-ahead for the general meeting to be convened.

Under the restructuring, the 142-year-old JNBS will remain a mutual organisation, continuing the ownership by its members, which will be preserved in a new mutual holding company. That holding company will own all the entities in the overarching JN Group.

"The organisation will separate its non-financial and financial companies, for regulatory purposes, through two subholding companies, which will both be owned by the mutual holding company," JNBS said in a press release. JN Bank will be the name for the commercial banking side of operation, JNBS told Gleaner Business on Tuesday.

The group's businesses currently span mortgage banking through the building society, money services, life and general insurance, microfinance, wealth management, and IT services.

JNBS, which is now the top building society in a market of three, will become the third largest of seven commercial banks once the transition is complete. At June 2016, the building society was valued at $142 billion by assets, according to central bank data.