The South African Reserve Bank has announced the issuing of another Cooperative Banking Licence.
It said in a statement on Thursday that the Ziphakamise Savings and Credit Co-operative (SACCO) licence is the first co-operative banking license to be issued since 2011.
The SACCO has expanded the beneficiaries of its services from the employees of Bell Equipment to now include the Community of Umhlathuze, KwaZulu Natal, it said.
Prior to registration with the SARB, the institution was regulated under the exemption notice administered by the Cooperative Banks Development Agency (CBDA).
The current legislative framework makes provision for three types of banking licenses; Commercial, Mutual and Cooperative banks.
South Africa has two cooperative banks, namely, the OSK Koöperatiewe Bank and Ditsobotla Primary Savings and Credit Cooperative Bank, which were both registered in 2011.
“Ziphakamise Cooperative bank is deemed to have sufficient human, financial and operational capacity to function efficiently and competently as a co-operative bank,” said deputy governor of the Reserve Bank, Kuben Naidoo.
The SACCO became eligible to apply for registration as a co-operative bank after reaching the membership and deposits of 200 and R1 million, respectively.
As of 31 June 2017, the SACCO reflected 618 members and a deposit of R4 million.