Abstract

VALLS MARTINEZ, María del Carmen; RAMIREZ ORELLANA, Alicia  and  ABAD SEGURA, Emilio. Cooperative ethical banking: An analysis of innovative loan transaction of JAK Medlemsbank. Contad. Adm [online]. 2019, vol.64, n.4, e130.  Epub May 12, 2020. ISSN 0186-1042.  https://doi.org/10.22201/fca.24488410e.2020.1786.

This article studies, from a financial point of view, the operation of the deposit and credit system in the Swedish ethical cooperative JAK, calculating the real effective cost of a loan transaction. The results show that the original model of this self-denominated “interest-free bank” really involves to the borrower a real effective cost. Furthermore, it shows how, in normal circumstances, this cost is fast higher than average cost offered by traditional banks. This fact is due to JAK requires a higher non-remunerated deposit, because of both the application of a reducing coefficient and the same term to the loan granted. Consequently, this kind of bank it is not attractive. However, when the social benefits are considered, as well as the possibility of obtaining loan rights to other members, its utility is considerable from an social and economic and point of view, due to the low effective cost of the operation.

Keywords : Ethical banking; Interest rate; Loan transactions; Savings operations.