2.7 The National Credit (Act 34 of 2005)
The National Credit Act regulates all credit providers, including deposit taking entities such as banks and cooperatives that extend credit. Such entities must register as a credit provide with the National Credit Regulatory and comply with the National Credit Act and the regulations issued in terms thereof. The National Credit Act focuses on consumer protection, […]
2.6 The National Payment System of South Africa Act (Act 78 of 1998)
This legislation allows for the management, administration, operation, regulation and supervision of the payment, clearing and settlement systems in South Africa, and affects banks in so far as they are clearing and settlement participants and offer payment services to their clients.
2.5 The Cooperative Banks Act (Act 40 of 2007)
The Cooperative Banks Act seeks to improve access to banking services through sound, sustainable cooperative banks. It provides a formal regulatory and supervisory framework for cooperative banks. In addition, it protects members of such banks through, among others, the provision of depositor protection and lender-of last-resort facilities. Cooperative banks must maintain and meet a number […]
2.4 The Mutual Banks Act (Act 124 of 1993)
The Mutual Banks Act allows for the regulation of mutual banks. The Mutual Banks Act effectively replaced the legislation for building societies.
2.3 The South African Reserve Bank ACT (Act 90 of 1989)
The South African Reserve Bank Act consolidates the laws relating to the South African Reserve Bank (SARB) and the monetary system of the country. It sets the framework for the minimum reserve requirement, also called the cash reserve requirement.
2.2 The Banks Act (Act 94 of 1990)
This is the most significant piece of legislation for South African banks. The key objective is to regulate and supervise the taking of deposits from the general public. The focus of the Banks Act is prudential regulation, or the financial soundness of banks. Subject to certain exceptions, no person may conduct the business of a […]
2.1 Introduction
The sections following consider the key legislation governing the banking and deposit taking industry. These key pieces of legislation, together with their associated regulations, provide a distinct framework for the regulation of deposit taking entities in South Africa.
1.8 Postbank
Postbank, a division of the South African Post Office, conducts deposit taking in terms of an exclusion from the provisions of the Banks Act. The South African Postbank Limited Act provides for the incorporation of Postbank and thereby cleared the way for it to apply for a banking license in terms of the Banks Act. […]
1.7 Ithala Development Finance Corporation
KwaZulu-Natal’s provincial development finance agency is the Ithala Development Finance Corporation (IDFC). It accepts, holds and invests deposits received from the general public. It conducts the business of a bank in South Africa in terms of an exemption from the provisions of the Banks Act.
1.6 Stokvels
A stokvel is a group or association of individuals who make regular contributions to a pool of savings or common fund, generally on a weekly, fortnightly or monthly basis. Each member can draw from the fund, usually for a specific purpose. In many stokvels, the pool is given in total or in part to each […]