This is a financial institution that accepts deposits and grants loans for profit.
What is a commercial bank?
This process allows banks to lend more money than they physically hold in cash.
What is credit creation?
This is the largest commercial bank in Jamaica by assets and customers.
What is National Commercial Bank (NCB)?
A farmer in St. Thomas gets a loan from JN Bank to buy a refrigerated truck to deliver produce to Kingston. This illustrates what key function of commercial banks?
What is lending and economic development (or providing loans)?
This is the main goal or motive behind all the operations of a commercial bank.
What is earning a profit
By linking savers and borrowers, commercial banks perform this vital economic role.
What is mobilizing capital?
This bank, often called “Scotia,” is one of the oldest foreign-owned banks operating in Jamaica.
What is Scotiabank (Bank of Nova Scotia Jamaica Limited)?
When a commercial bank increases loan interest rates after the BOJ raises the policy rate, it demonstrates this concept.
What is monetary policy transmission?
Commercial banks serve as these institutions that channel money between savers and borrowers.
What is deposit-taking institutions (DTIs)?
This policy tool allows the Bank of Jamaica to influence commercial banks’ interest rates.
What is the monetary policy rate (or policy rate)?
This commercial bank evolved from a building society and is known for being fully Jamaican-owned.
What is JN Bank?
A small business uses a POS machine provided by their bank to accept debit card payments. What concept does this show?
What is technological innovation in payment systems?
The process of taking in funds from savers and lending them out to borrowers is known as this key function.
What is financial intermediation?
When commercial banks diversify their loan portfolios to protect against loss, they are practicing this essential function.
What is risk management?
This financial institution offers both banking and investment services and was founded by the late financial pioneer Joan Duncan.
What is JMMB Bank?
A Jamaican living in the UK sends ÂŁ500 to family in Kingston through a wire transfer. The local bank converts the funds into Jamaican dollars. What function is this?
What is foreign exchange (FX) service?
Jamaica’s economic growth depends heavily on this function of commercial banks, which turns individual savings into productive investments for businesses and industries.
What is financial intermediation (or capital mobilization)?