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Co-operative Banks Act, 2007 (Act No. 40 of 2007)

Chapter III : Prudential Requirements and Large Exposures

20. Prudential requirements of co-operative bank

 

(1) A co-operative bank must meet and maintain such minimum—
(a) capital requirements;
(b) asset quality;
(c) liquidity to be held in addition to any surplus reserves held in accordance with paragraph (d); and
(d) surplus reserves as required by section 46 of the Co-operatives Act,

as may be prescribed by the Minister.

 

(2) Regulations prescribed in terms of subsection (1) may—
(a) specify the—
(i) type, form, components, composition, percentage and value of each matter referred to in subsection (1); and
(ii) method of calculating the values referred to in subparagraph (i); and
(b) apply to co-operative banks generally; or
(c) differentiate between different kinds of co-operative banks, which differentiation may be defined in relation to either a type or budgetary size of co-operative bank or to any other matter.