The Bank of Nova Scotia Jamaica Limited (Scotiabank Jamaica), a subsidiary of Canada-based The Bank of Nova Scotia, has created Scotia Jamaica Microfinance Company Limited to provide microloans on the Jamaican island. The new company will operate under the brand CreditScotia and will target microentrepreneurs mainly in the trading and manufacturing sectors. Loan sizes will range between JMD 60,000 (about USD 698) and JMD 850,000 (about USD 9,880). Interest rates and collateral requirements were not disclosed.
Patsy Latchman Atterbury, vice-president of small and medium enterprises at Scotiabank, was quoted as saying “In the marketplace, there are four sectors, commercial, small business, and corporate, which Scotia already serves… The unserved part is microfinance, so this represents a closing of the gap for us.”
Scotiabank has previously been involved in the microfinance industry in Jamaica through Micro Enterprise Finance Limited (MEFL), a nonprofit corporation sponsored by the Canadian International Development Agency, Bank of Nova Scotia Jamaica Limited and nonprofit Kingston Restoration Company. MEFL’s activities have reportedly been terminated, and CreditScotia will be occupying its old offices. CreditScotia will operate four dedicated branches.
By Kristha Abores, Research Associate
About Bank of Nova Scotia (Scotiabank):
Established in 1832, Bank of Nova Scotia (Scotiabank) is a Canada-based bank that provides a range of retail, commercial, corporate, investment and international banking services. As of October 31, 2010, Scotiabank reported total assets of USD 527 billion, return on assets of 0.82 percent and return on equity of 18.3 percent. The bank operates approximately 2,000 branches in 50 countries.
Sources and Additional Resources:
[1] Jamaica Gleaner: “Scotia Group Enters Microfinance Market”, http://jamaica-gleaner.com/gleaner/20111102/business/business3.html
MicroCapital.org article, July 13, 2010, “MICROCAPITAL BRIEF: In Jamaica, Inter-American Development Bank (IDB) Loans $450,000 to Microfinance Institution (MFI), Micro Credit Limited, IDB’s Gerard Johnson Urges Jamaican Government to Avoid Involvement”, https://www.microcapital.org/microcapital-brief-in-jamaica-inter-american-development-bank-idb-loans-450000-to-microfinance-institution-mfi-micro-credit-limited-idbs-gerard-johnson-urges-jamaican-government-to-avoid-in/
MicroCapital.org article, September 10, 2007, “MICROCAPITAL STORY: Bank of Nova Scotia (NovaScotia Bank) Invests USD 810 million on Chilean Bank Banco del Desarrollo”, https://www.microcapital.org/microcapital-story-bank-of-nova-scotia-novas…
MicroCapital Universe Profile: Bank of Nova Scotia, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+of+Nova+Scotia+%28Scotiabank%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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