The
JAK Members Bank, or
JAK Medlemsbank, is a cooperative, member-owned
financial institution based in
Skövde,
Sweden, and based on a concept that arose in
Denmark in 1931.
JAK is an acronym for
Jord Arbete Kapital in
Swedish or
Land Labour Capital, the
factors of production in
classical economics. A membership of approximately 39,000 (as of December 2015) dictates the Bank's policies and direction. The Board of Directors is elected annually by members, who are each allowed only one share in the bank. JAK Members Bank does not charge or pay
interest on its loans, a principle it shares with
Islamic banking. All of the bank's activities occur outside of the
capital market as its loans are financed solely by member savings. Administrative and developmental costs are paid for by membership and loan fees.