“Ziphakamise Cooperative bank is deemed to have sufficient human, financial and operational capacity to function efficiently and competently as a co-operative bank,” Sarb Deputy Governor Kuben Naidoo said.

A co-operative banking licence is one of three that the Sarb issues, the others being commercial and mutual.

A co-operative bank is an autonomous association of persons united voluntarily to meet their common economic and social needs and aspirations through a jointly owned and democratically controlled enterprise.

The central bank said Ziphakamise had become eligible to apply for a licence after reaching membership of 200 and R1 million in deposits. As of June this year, it had 618 members and R4 million in deposits.

South Africa currently has two co-operative banks, the OSK Koöperatiewe Bank and Ditsobotla Primary Savings and Credit Cooperative Bank, which were both registered in 2011.

– African News Agency