Some stokvels engage in activities that closely resemble those offered by formal financial institutions, particularly banks. This similarity is reinforced by regulations from the Minister of Finance, which explicitly exempt stokvels from the Banks Act. Such exemptions suggest a potential overlap between stokvel and bank activities, as the Minister has the authority to define what constitutes "the business of a bank." The regulations indicate that activities among members of a common bond, such as those conducted by stokvels, are not included in the definition of banking activities, thus intentionally excluding them from regulatory oversight under the Banks Act.
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. [
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