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 Co-operative Bank
Supervision
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Co-operative Banks Development Agency:
Co-operative Bank Supervision
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Frequently asked questions (FAQs) |
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- To whom does the Co-Operative Bank Act apply?
- The Act applies to all co-operative banks registered under the Act and to any –
- primary co-operative registered under the Co-operatives Act that takes deposits and
- has 200 or more members; and
- holds deposits of members to the value of R1 million or more; and
- Secondary or tertiary co-operative registered under the co-operatives Act whose members consist of al least –
- two or more co-operative banks;
- two or more financial services co-operatives that take deposits; or
- one co-operative bank and one financial service co-operative that take deposits
- With whom must I register my Financial Cooperative or Co-Operative Bank?
- Start ups and less than 200 members and R1million in assets. You are
required to be registered under a Banks Act exemption notice Gazette No.
31342 notice 887 of the 22 August 2008 applicable to Financial Services
Co-operatives (FSCs) or Gazette No. 29412 notice 1176 of the 1st
December 2006 applicable to Savings and Credit Co-operatives (SACCO).
A Financial Co-operative, FSC or SACCO with 200 members and more than
R1 million in deposits You are required to be registered with a
supervisor located at either the CBDA or SARB. Your application should
be sent to the Co-operative Banks Development Agency (CBDA) at cbda@treasury.gov.za
who will process it and direct it to the relevant supervisor
- What happens once I have applied for registration as a Co-Operative Bank?
- All applications for registration will be required to demonstrate to
the satisfaction of the relevant supervisor that:
- Your proposed co-op bank complies with the requirements for registration
- That your proposed cooperative bank has sufficient human, financial and
operational capacity to function efficiently and competently as a
co-operative bank
- That every person that is to be a director,managing director or executive officer of the proposed co-operative bank
has the necessary experience, knowledge and qualifications to operate the proposed co-operative bank and is a fit and proper person
- that the composition of the board of directors of the proposed co-operative bank is appropriate having regard to the nature and scale of the
business to be conducted
- the constitution complies with the Act
- the proposed co-operative bank is in the public interest
It is the supervisor’s prerogative to decide whether to conduct an
inspection of the applicant prior to registration.
After the assessments have been done, the supervisor may grant an
application for registration subject to any conditions he or she may
determine.
The supervisor will on registration, issue a certificate of
registration to the cooperative bank and publish a notice of the
registration in the Gazette. Only at this point do you trade as a
Co-operative Bank.
- How do I start up a Co-Operative Bank?
- Your co-operative can only apply to register as a co-operative bank
once it has more than 200 member and R1million in deposits. You need to
start up as either a Financial Services Co-operative (FSC) or Savings
and Credit Co-operative (SACCO). More information on how to register a
SACCO or FSC can be obtained from:
These organisations will assist you with regard to their requirements when starting up a
co-operative and a Financial Co-operative in particular.
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