Summarise:

It is clear that the activities of some types of stokvel resemble the services and products offered by some formal financial institutions in general, [150] and banking institutions in particular. [151] This resemblance is further indirectly enhanced by the fact that the Minister of Finance has by regulation expressly exempted stokvels from the operation of the Banks Act. [152] The exclusion of their activities from the scope of the phrase ‘the business of a bank’ is in itself a strong indication of the possibility of an overlap between the activities of stokvels and banks. The Minister is empowered to designate certain activities as activities which do not fall within the ambit of the phrase ‘the business of a bank’. From the wording of the regulation it is clear that ‘the activities of a group of persons between the members of which exists a common bond’ do not fall within the meaning of ‘the business of a bank’. From the wording of the regulation it is further clear that the intention is to exclude the activities of stokvels, among other groups, from the operation of the Banks Act

1 answer

The activities of certain stokvels bear similarities to those offered by formal financial institutions and banks. This resemblance is reinforced by a regulation from the Minister of Finance, which exempts stokvels from the Banks Act. This exemption suggests a potential overlap between the functions of stokvels and banks, as the Minister can designate activities that are not considered "the business of a bank." The regulation specifically indicates that activities involving a group of individuals with a common bond, such as stokvels, are excluded from the Banks Act’s scope.