UPDATED: Two new commercial banks coming
Competition is set to intensify in the banking sector, with the announcement that three new commercial licenses have been approved by the Bank of Jamaica.
The Finance Minister Audley Shaw made the announcement this morning.
The new licensees are the Jamaica National Building Society (JNBS) and the Jamaica Money Market Brokers Limited (JMMB).
Speaking at Prime Asset Management’s pension seminar at the Pegasus Hotel this morning Shaw said the increased competition in the banking sector is expected to reduce spreads to regionally and internationally accepted levels.
Spreads are the differences between the savings and deposits rates and lending rates
Shaw says this would lead to greater access to affordable credit and faster economic growth as well as job creation.
NOTE: Earlier, this story had said Myers, Fletcher and Gordon Finance Limited was also granted a commercial banking license. The Finance Minister Audley Shaw has since he made an error when he made that announcement. He said, in fact, the BoJ has approved the sale of Myers, Fletcher and Gordon Finance Limited as a merchant bank.