Central bank calls for public input into the reviewed General Regulations on Building Societies
The Bank of Namibia is calling on stakeholders to propose input into the reviewed General Regulations on Building Societies.
Building Societies are currently administered under the Building Societies Act, 1986 (Act No. 2 of 1986) as amended (“the Building Societies Act”), which provides for the registration and supervision of
According to the Building Societies Act, a building society is a group of people who come together to raise money through the sale of shares, public deposits, or member subscriptions to build, buy, and improve homes as well as to provide the necessary security for the mortgage of urban immovable property.
As the building society’s regulator, the Bank, has revised the General Regulations on Building Societies in advance of the amendments to the Building Societies Act, 1986 (Act No. 2 of 1986) as amended (“the Building Societies Act”), which was last issued in 1980.
“The need for the revision is occasioned and necessitated by the fact that the business of building societies as well as the regulatory and supervisory functions over building societies have evolved over the years, and the application of the legal framework in its current form proves challenging as some provisions have become irrelevant over the years,” the central bank said in a statement.
According to the Bank, it is therefore critical that the legal framework be updated to reflect current realities.
“As a result, the Bank revised the General Regulations on Building Societies in the short term, while the Act will be reviewed in 2023. Given the timeframe for reviewing the main Act, this arrangement has proven to be the most feasible and efficient approach,” the Bank said.
Meanwhile, the primary purpose of the current revision of the General Regulations on Building Societies is to improve efficiency in the interpretation and implementation of the legislation.
“The policy matter concerning the General Regulations on Building Societies will be addressed once the relevant provisions in the enabling Act, the Building Societies Act, have been amended,” they concluded.
Written comments on the revised General Regulations on Building Societies can be submitted by or before 16 September 2022 at [email protected].