Die geskiedenis van ons eerste volksbank, 1918-1948

Abstract

The purpose of this study is to explain why Ons Eerste Volksbank originated and why it is still the only people's bank in South Africa today. growth of the bank was also examined. The financial In this study it is made clear that Ons Eerste Volksbank came into existence when the three founders of the bank decided to help the poor people of Pretoria by helping them to help themselves. Ons Eerste Volksbank was born out of this effort. It was based on the principle of selfhelp. The most important aim of Ons Eerste Volksbank was to grant small loans to members of the bank. No other bank would have judged these people creditable for any loans. Firmness of principle and trustworthiness were factors taken into account, when considering a loan. Personal involvement was a distinctive feature of their business attitude, contrary to other banks. From the begining it was clear that no bank could have taken the place of Ons Eerste Volksbank. Legislation which affected people's banks was also examined, especially the Usury Act of 1926, which resulted in the closing down of all the other people's banks. This was a deplorable situation. The principles of saving money and regularly repaying outstanding loans, were taught to every member of the bank. In conclusion it was clear that Ons Eerste Volksbank was financially successful, especially if the statistics of outstanding loans are taken into consideration. It was evident that Ons Eerste Volksbank was the best solution against usury.