Out of the gazette, into the inbox: How the 2026 amendments reshape mutual bank reporting

On 29 April 2026, the Minister of Finance, Enoch Godongwana, published amendments to the Regulations relating to Mutual Banks in Government Gazette Notice No. 7414 (Government Gazette No. 54593). Made in terms of section 91 of the Mutual Banks Act of 1993 (the “Mutual Banks Act”), and effective from 1 May 2026, the amendments are framed as administrative updates to the reporting and supervisory framework applicable to the mutual banks. They do not introduce new substantive prudential standards in the usual sense. The amendments update the Regulations so that the text reflects the shift of mutual bank supervision into the Twin Peaks architecture established by the Financial Sector Regulation Act, 2017 (the “FSRA”).

Background

Mutual banks are deposit-taking institutions established under the Mutual Banks Act, distinguished from commercial banks (which are regulated under the Banks Act, 1990 (the “Banks Act”)) primarily by their member-based ownership structure, in which depositors may hold a participatory interest in the institution. Historically, mutual banks were supervised by the Registrar of Banks, operating through the Office for Banks within the South African Reserve Bank. Following the introduction of the FSRA and the move to the Twin Peaks model, the prudential supervisory role shifted to the Prudential Authority. The Mutual Banks Regulations, however, continued to refer to the Registrar and the Office for Banks, despite mutual banks being dealt with under a different supervisory institution in practice.

Replacement of “Registrar” and “Office for Banks” with “the Authority”

This shift in supervisory responsibility necessitated a textual change in the language of the Regulations, replacing every reference to the "Registrar" and the "Office for Banks" with "the Authority". The 2026 amendments bring the text of the Mutual Banks Regulations into line with that institutional reality and, in doing so, recalibrate the balance between primary regulation and administrative direction. This change formally confirms that the Authority is the supervisor with whom mutual banks (and prospective mutual banks) will engage on all matters arising under the Regulations going forward.

Amended reporting framework

The reporting changes are clearest in regulation 9. Where the Regulations previously worked on the basis of prescribed returns and set reporting intervals, the substituted provision empowers the Authority to determine and direct, in writing, the financial, risk-based and other related returns that must be submitted. In parallel, regulation 43 has been substituted in equivalent terms, but with an additional destination requirement. It contemplates returns being submitted to both the Authority and the Economic Statistics Department of the South African Reserve Bank, in the manner, and at the intervals, the Authority directs in writing.

The practical consequence is that the format, content, frequency and submission deadlines for returns are no longer fixed by subsidiary legislation but may be set, varied and updated by the Authority through written direction. This affords the Authority considerably more flexibility to adjust reporting as supervisory priorities change.

Notably, the new regulation 9 is not confined to mutual banks: it extends to "any other relevant person, entity or institution regulated or supervised by the Authority", which on its face contemplates the imposition of return obligations on associated parties within a mutual banking group.

Deletion of the prescribed DI Fforms

Consistent with the new framework, the amendments delete a suite of prescribed DI forms that had previously been embedded within the Regulations (namely DI 099, DI 100, DI 110, DI 200, DI 300, DI 310, DI 400, DI 401, DI 402, DI 403, DI 410, DI 420, DI 430, DI 500, DI 505, DI 510, DI 520, DI 600, DI 700, DI 701, DI 702, DI 900, DI 910, DI 920 and DI 930). The related provisions (regulations 19 to 31, and 44) have been updated so the underlying obligation to complete each return is preserved, but the relevant forms must be completed in accordance with such instructions or requirements as may be determined or directed in writing by the Authority. In effect, the form requirements are no longer prescribed as schedules in the Regulations but are to be determined by written direction of the Authority.

New regulation 31A: investments and interests held

The amendments insert a new regulation 31A, which provides directives and interpretations for the completion of returns relating to investments and interests held (forms DI 700, DI 701 and DI 702). As with the amended reporting provisions elsewhere, regulation 31A preserves the obligation to complete the returns, but ties completion to the Authority’s written instructions or requirements.

Alignment with the Banks Act Framework

The new approach brings mutual bank reporting closer to the model under the Banks Act framework. Under that framework, prudential returns (the well-known BA-series forms) are prescribed and updated administratively by the Authority rather than embedded in subsidiary legislation. This alignment is consistent with the broader Twin Peaks objective of harmonised, risk-sensitive prudential supervision across all deposit-taking institutions. It may be an early sign of closer convergence between mutual bank reporting and the expectations placed on commercial banks, although the extent of that convergence will largely depend on how the Authority exercises its new directive powers in practice.

Practical implications for Mutual Banks and prospective Mutual Banks

For existing mutual banks, the immediate content and frequency of returns should remain broadly unchanged in the near term, unless and until superseded by a written direction from the Authority. Going forward, however, compliance teams will need to monitor written directions issued by the Authority, since the parameters of mutual bank reporting will now move outside the Government Gazette and into the Authority's administrative correspondence. Governance frameworks, regulatory change-management processes and outsourced reporting arrangements should be reviewed to ensure they can absorb directive-based changes to return content, format or cadence within the timelines the Authority may prescribe.

For prospective mutual banks, including fintech and community-based deposit-taking ventures evaluating the mutual bank licence as an alternative to a full banking licence, the amendments reinforce that the Authority is the single supervisory point of contact for prudential returns. Licence applicants and their advisers should expect prudential reporting expectations to be communicated through Authority directives rather than gleaned solely from the Regulations, and pre-application engagement with the Authority on reporting capability will be increasingly important.

For groups that include a mutual bank alongside other regulated entities, the widened wording in regulation 9 (as above) is notable. It provides a mechanism by which the Authority could impose aligned reporting obligations across an entire regulated group structure.

Conclusion

The 2026 amendments are best understood not as a change in the substance of mutual bank prudential requirements, but as a structural shift in how those requirements are prescribed. By enabling the Authority to determine and direct reporting requirements in writing, the amendments allow reporting to be adjusted more readily as supervisory priorities and risks evolve. This places a corresponding premium on active monitoring and timely implementation by mutual banks, licence applicants, and their advisers.

Our banking and finance team remains at the forefront of current legislation and regulatory developments, ensuring a streamlined and compliant application process. Should you have any queries, please do not hesitate to contact us.

Deborah Carmichael

Executive | Banking and Finance

dcarmichael@ensafrica.com

Thameena Ganey

Associate | Banking and Finance

tganey@ENSafrica.com

Liza Vermaas

Candidate Legal Practitioner | Banking and Finance

lvermaas@ensafrica.com