[1][2][3] JAK is an acronym for Jord Arbete Kapital in Swedish or Land Labour Capital, the factors of production in classical economics.

All of the bank's activities occur outside of the capital market as its loans are financed solely by member savings.

If a member is borrowing more saving points than they currently possess, they are obliged to continue accumulating "aftersavings" during the repayment period.

[4] The co-operative society Jord Arbejde Kapital was founded in Denmark during the Great Depression in 1931.

The experience of JAK-banking in Denmark inspired a group in Sweden to develop a non-profit organisation named Jord Arbete Kapital - Riksförening för Ekonomisk Frigörelse (National Association for Economic Emancipation) in 1965.

JAK operates under the following principles: The main aim of the bank is to provide its members with a viable, feasible financial instrument, sustainable for the environment and serving the local economy.

Swedish court sided with Konsumentverket and banned JAK Members Bank from calling its loans "interest-free".