Agenda

Presentation to the Portfolio Committee on Small Business

Co-operative
Banks THE ROLE OF THE
Development CO-OPERATIVE BANKS DEVELOPMENT AGENCY in
Agency ASSISTING CO-OPERATIVE FINANCIAL
INSTITUTIONS AND CO-OPERATIVE BANKS
David de Jong - Acting MD
Nomadelo Sauli - Head, Capacity Building Unit
19 August 2020
 • CBDA MANDATE
• SERVICES OFFERED
• SECTOR OVERVIEW
CONTENTS • Members
• Deposits
• Loans
• Assets
• Capital
• QUESTIONS/COMMENTS
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MANDATE

Co-operative Banks Act no 40 of 2007

 The Co-operative Banks Development Agency was established in terms of the Act with the
aim to promote and advance the social and economic welfare of all South Africans by
enhancing access to banking services under sustainable conditions

Functions of the CBDA

 support, promote and develop co-operative banking, and promote the establishment of
representative bodies and support organisations.
 register representative bodies, accredit support organisations and regulate representative bodies
and support organisations
 Interact with any regulatory authority to ensure appropriate regulation of co-operative banking
and co-operative banks; and monitor trends and patterns in the development of co-operative
banking and co-operative banks.
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MANDATE
Functions of the CBDA

 provide financial support to co-operative banks and manage the Fund in accordance with section
26 of the ACT

 assist co-operative banks with liquidity management;

 facilitate, promote and fund education, training and awareness in connection with, and research
into, any matter affecting the effective, efficient and sustainable functioning of co-operative banks;

 consult with the South African Qualifications Authority established by the South African
Qualifications Authority Act, 1995 (Act No. 58 of 1995), or any body established by it and liaise
with the relevant National Standards Body established in terms of Chapter 3 of the regulations
under the South African Qualifications Authority Act, 1995, in respect of co-operative banks and
support organisations
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MANDATE

VISION

To facilitate financial inclusion and economic transformation while

ensuring a sustainable cooperative banking sector that empowers
communities.

MISSION
Creating an enabling environment for the cooperative banking sector through innovative
solutions, capacity building, funding and technology interventions. This is achieved
through support provided to cooperative banking institutions, for the ultimate benefit and
financial inclusion of underserviced communities in South Africa.

CO-OPERATIVE BANKS DEVELOPMENT

AGENCY
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SECTOR OVERVIEW
As at end Feb 2019

Non-Financial support to ensure governance and operational matters are

attended and in compliance with legislative requirements.

27 Co-operative Over 30 000 Over R260m Over R 340m in Over R420m Over R33m in
Banking Institutions Members in Loans Deposits in Assets Capital

 Provide support to 23 Co-operative Financial Institutions and 4 Co-operative

Banks
 1 registered Representative body and no Support Organizations yet
 30 000 membership comprises individuals and groups.
 Loans in the range of R260 m and deposits at above R340m
 Total Capital at end of FY19/20 was at R33m
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SECTOR OVERVIEW
Growth

MEMBERSHI
CBIs LOANS DEPOSITS ASSETS CAPITAL
P
Feb 19 26 27 490 R247 021 072 R294 437 849 R369 469 484 R33 267 937

Feb 20 27 30 191 R267 493 165 R346 536 194 R423 733 812 R35 257 095

Growth 3,70% 8,95% 7,65% 15,03% 12,81% 5,64%

CO-OPERATIVE BANKS DEVELOPMENT

AGENCY
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SERVICES OFFERED

Innovative solutions, capacity building and technology interventions.

Pre-Registration Support Operationalisation Technical Assistance

and Training
Organisational Development : Training, Coaching and Mentoring

Potential CBIs and Support
Organisation
 Provide guidance and Support for
registration
 Ensure awareness of the Cooperative
Banking Model
 Present the Legislative environment
and Registration requirements
Newly Registered CBIs and
Support Organisation
 Orientate board/management/staff and
outline roles and responsibilities
 Monitor Operations for adherence to
policies and for Financial performance
 Provide Governance, Operations and
Compliance Training
 Ensure compliance with registration
requirements
Operational CBIs
 Monitor Financial Performance
 Provide Business support, Banking
operations tools and on the Job
Training
 Review operations, product policies
are aligned with strategic objectives
 Strengthen Internal Controls for
compliance and adherence to statutory
requirements
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SERVICES

A sustainable Compliance Strategy Formulation and

co-operative Review

banking sector Technical Assistance

Training Banking Operations

Tools
Coaching People Process
Business Operations
Mentoring Support

Performance Financial Performance

Management Monitoring

Innovation Operational
Technology Efficiencies

Technology
Advisory
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SERVICES OFFERED
LOCKDOWN PERIOD

Innovative solutions, capacity building and technology interventions.

Pre-Registration Support Operationalisation Technical Assistance

and Training
Organisational Development : Training, Coaching and Mentoring

Potential CBIs and Support
Organisation
 Virtual Platforms used to provide Pre-
Registration Support
 Emails used to provide guidance and
Support for registration requirements
Newly Registered CBIs and
Support Organisation
 Online training and orientation sessions
for board/management and staff
Operational CBIs
 Online Board Meetings and
Monitoring interventions
 QUESTIONS AND COMMENTS
THANK YOU
www.treasury.gov.za/coopbank