Co-operative Banks Act, 2007 (Act No. 40 of 2007)RegulationsRegulations in terms of Section 86Part 3 : Banking services provided by co-operative bank [Section 14] |
| 3.1 | A co-operative bank may secure external borrowing, the aggregate of which does not exceed 15% percent of the total assets held by that co-operative bank. |
3.2
| (a) | A co-operative bank may acquire or hold the following assets with money deposited with it— |
| (i) | deposits held with a bank registered in terms of the Banks Act; |
| (ii) | deposits held with secondary or tertiary co-operative banks of which a co-operative bank is a member; |
| (iii) | financial co-operative retail savings bonds with 1 , 2 or 3 year maturity dates, and treasury bills issued under the Public Finance Management Act, 1999 (Act No. 1 of 1999); |
| (iv) | participatory interests in portfolios of collective investment schemes approved by the Registrar of Collective Schemes and administered by a manager registered under the Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002) as determined by the supervisor by notice on its official website; |
| (v) | bonds and debentures determined by the supervisor by notice on its official website issued by— |
| (aa) | national government; |
| (bb) | public entities listed under the Public Finance Management Act, (Act No. 1 of 1999); or |
| (cc) | the South African Reserve Bank. |
| (b) | The supervisor may make any determination referred to in paragraph (a)(iv) or (v) subject to conditions. |
3.3
| (1) | A co-operative bank, other than a savings co-operative bank, when granting loans must ensure that— |
| (a) | all loans granted, including loans referred to in paragraph (b), are approved in accordance with its lending policy; |
| (b) | all loans granted to employees, officials and directors of the co-operative bank or their direct family members or business associates, as defined in its lending policy, are declared in its annual financial statements in a manner prescribed by the supervisor; and |
| (c) | in respect of a secondary or tertiary co-operative bank, all loans to other co-operative banks are secured by the cession of an appropriate percentage of the loan books of those co-operative banks to the secondary or tertiary co-operative bank. |
(2)
| (a) | A co-operative bank must annually review and, if necessary, amend its lending policy. |
| (b) | A co-operative bank must prior to adopting and implementing any amendments to its lending policy— |
| (i) | solicit the views and recommendations of the supervisor; and |
| (ii) | take into account any written views and recommendations on the amendments by the supervisor. |