THE JAMAICA Bankers' Association (JBA), in an effort to aid students who have applied for loans through the Students' Loan Bureau (SLB), has agreed for its members to advance a portion of the excess deposit released to them by the Bank of Jamaica on loan to the Bureau.
In a statement on Monday, JBA President William Clarke said students pursuing educational studies and career skills that are focused on the developmental needs of Jamaica would be given priority. "These are including, but not limited to, the teaching and nursing professions, as well as the information technology industry," Mr. Clarke said.
In May 2005, the Central Bank reduced the Special Deposit Rate for banks and specified financial institutions from five per cent to one per cent.
REQUIREMENTS REDUCED
This resulted in the banks being required to maintain a lesser sum in their special deposit accounts at the Bank of Jamaica (BoJ). The BoJ was therefore required to release to member banks a portion of the sums (the excess deposit) it held up to May 2005.
However, the loan agreements in relation to this matter are currently being executed to enable the SLB to immediately access the funds.
