1. Presentation to Portfolio Committee on Finance
28th August 2007

2. SACCOL MANDATE
Representation
Development
Supervision and Regulation

3. DEVELOPMENT
Membership Growth Paying Members

4. DEVELOPMENT SACCO performance Assets, deposits and loan growth 10 2010 20 30 40 50 60 70 80
2002
2003
2004
2005
2006
2007
Millions
Total Assets
Deposits
Net loans

5. Registered SACCOs in South Africa
Urban - 13
Peri-urban - 7
Rural - 18

6. Environmental Overview
Legislation
Gov. Gazette 24912
Co-ops Act 2005
National Credit Act
Coops Banks Bill

7. Issues to be addressed Definitions: Executive officer
Application of the Act
Constitution and functions of coop bank
Prudential requirements
Deposit fund and scheme
Support organisation
Coop Bank Development Agency
Governance of the Agency
Coop Banks Taxation
PERSAL
Laws amendments

8. Chapter 1: Definitions “Executive officer”
Executive officers appointment
In cooperatives directors MUST be elected.
Request to be removed

9. Application of the Act
Groups less than 200 members or R2 million in assets
Recommend
Insert a “study group” or “provision registration” category

10. Constitution of Coop Bank: Supervisory Committee and Audit Committee
Duplication
Recommend
Should be one or the other

11. Constitution of Coop Bank: Share certificates
Costly
Recommend
Receipt and statement should

12. Constitution of Coop Bank: Access to National Payment System
Primary Coop Banks no access
Recommend
Should have access

13. Prudential Requirements Capital
Do request more definition be given to “Shares” and Capital of a cooperative as they are often confused and open to different interpretations

14. Prudential Requirements Large Exposures
23.1 Concern at the wording
Seems to imply that the total investments (loans to members as a total) cannot exceed 10%
Should also take into account deposits into the Coop Bank

15. Deposit insurance and Schemes
Argue that Deposit insurance is a regulatory mechanism
Recommend
Sole preserve of the Supervisor. Coop Banks no role in Deposit Insurance only to pay premium

16. Application for Registration as Representative and Support Organisation
Bill does not address why one should register and what the advantages of registration are
Recommend
Needs to be made more explicit

17. Application for registration as Representative and Support Organisation
Two primary organisations can form a Representative or Support Org. Proliferation
Recommend
At least 5 Primary Coop Banks for form

18. Administration of the Act
Two registrar based on the TYPE of Cooperative Bank and R20 threshold.
Recommend
Registrar should regulate ACTIVITIES, not TYPES of Coop Banks. Reworded

19. Administration of the Act Relationship with other regulatory bodies.
Concern at regulatory Burden
Recommend
All regulatory agencies draw information form the Registrar of Coop banks, and not have Coop Banks reporting all over the place

20. Coops Banks Development Agency General Functions
Concern that the CBDA is going to be both player and referee
Recommend
Separation of duties. CBDA must not do development but act as wholesaler

21. Coops Banks Development Agency General Functions
Concern that the CBDA is going to be both player and referee. Same applies to stabilisation funding vs. liquidity funding
Recommend
Separation of duties. CBDA must not do development but act as wholesaler

22. Coops Banks Development Agency Governance of the Agency
Note that no Cooperative Banks on the Board
Recommend
50% of board be made up of Cooperative Representative Organisations

23. Coops Banks Development Agency Governance of the Agency
Note that no Cooperative Banks on the Board
Recommend
50% of board be made up of Cooperative Representative Organisations

24. Other
Taxation exemption
Repeal of Gazette exemptions
Access to Persal