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The management of workforce diversity and implications for leadership at financial asset services

  • Authors: Erasmus, L. J.
  • Date: 2008-05-12T13:21:06Z
  • Subjects: Diversity in the workplace , Leadership , Banks and banking
  • Type: Thesis
  • Identifier: uj:7048 , http://hdl.handle.net/10210/356
  • Description: The Financial Asset Services Division, or FAS, is an integral part of Standard Corporate Investment Bank’s operations. FAS offers high net-worth companies services and products that can generate extra revenues. Diversity is a new dimension that needs to be managed within South African organisations. The contemporary manager might not be equipped to deal with the new and unique set of challenges that accompany diversity related issues. This work aims to provide managers a basis to explore the concept of diversity management by investigating different management theories. This is also the basis of questionnaires put to managers and employees to determine what factors and dimensions influence leadership roles. Having identified these dimensions and factors it is also investigated what implications there are for leadership. Identified problem areas are brought to the reader’s attention as well as recommendations based on sound diversity management principles. This will provide management with a basis from which to effectively manage diversity in the workplace at FAS. , T.F.J. Oosthuizen
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The legal risks associated with trading in derivatives in a Merchant Bank

  • Authors: Terblanche, Janet Rene
  • Date: 2008-06-27T13:46:58Z
  • Subjects: Banks and banking , Derivative securities law and legislation , Risks management
  • Type: Thesis
  • Identifier: uj:10095 , http://hdl.handle.net/10210/747
  • Description: The research defines derivatives as private contracts, with future rights and obligations imposed on all parties, used to hedge or transfer risk, which derives value from an underlying asset price or index, which asset price or index may take on various forms. The nature of derivatives is that the instruments are intended to be risk management tools. The objectives of derivatives is either to hedge a risk, or to speculate. Derivatives may be classified by the manner in which they are traded, either over the counter (OTC) or on exchange. Alternatively, derivatives may be classified on the basis of structure and mechanisms, i.e. forwards, futures, options or swaps. Risk and risk management are defined in the third chapter with the focus on merchant banking. The nature of risk is that it is inherent in all activities. The nature of risk management is that it aims to ensure that the risks faced by the merchant bank are managed on a daily basis. The objective of risk management is to ensure that losses are minimised and the appropriate level of risk is taken in order to maximise profits. Risk may be classified as operational, operations, market, systemic, credit and legal risk. A comprehensive discussion of credit risk is presented, as it pertains to the legal risk in derivatives in a merchant bank. This includes insolvency, set-off, netting, credit derivatives and collateral. Legal risk is defined as the risk of loss primarily caused by legal unenforceability (i.e. a defective transaction, for instance a contract), legal liability (i.e. a claim) or failure to take legal steps to protect assets (e.g. intellectual property). The nature of legal risk is that it is caused by jurisdictional and other cross-border factors, inadequate documentation, the behaviour of financial institutions, a lack of internal controls, financial innovation or the inherent uncertainty of the law. The objectives of legal risk management in derivatives is to avoid the direct and indirect costs associated with legal risk materialising. This includes reputational damage. Derivatives attract specific legal risks due to the complexity of the instruments as well as the constant innovation in the market. There remains some legal uncertainty regarding derivatives in terms of gaming, wagering and gambling, as well as insurance. The relationship between risk and derivatives is that due to the complexity and constant innovation associated with derivatives, there are some inherent risks to trading in derivatives. It is therefore important to ensure that there is a vested risk management culture in the derivatives trading environment. Chapter four gives an overview of derivatives legislation in foreign jurisdictions and in South Africa. The contractual and documentation issues are discussed with reference to ad hoc agreements, master agreements and ISDA agreements. The practical implementation issues of master agreements and ad hoc agreements are also discussed. The recommendations are that legal risk management be approached in a similar manner to credit, market and other risk disciplines. A legal risk management policy needs to be developed and implemented. The second recommendation is that a derivative to manage the legal risk in derivatives be developed. , Prof. P. Sutherland Dr. C. van der Bijl
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Progress on the Financial Sector Charter scorecard in the South African banking sector

  • Authors: Matlabe, Aubrey
  • Date: 2010-10-25T06:32:35Z
  • Subjects: Banks and banking , Financial institutions , Financial Sector Charter
  • Type: Thesis
  • Identifier: uj:6937 , http://hdl.handle.net/10210/3447
  • Description: M.Comm. , The Financial Sector Charter is a transformation charter in terms of the Broad-based Black Economic Empowerment (BBBEE) Act (Act 53 of 2003). The Charter is a voluntary initiative by the financial sector to address racially based income and social inequalities in South Africa. It aims to encourage black economic participation through its six pillars. The Charter came into effect in January 2004 as a result of the Financial Sector Summit hosted by the National Economic Development and Labour Council (NEDLAC), the multilateral social dialogue forum on social, economic and labour policy. The Nedlac partners – government, business, labour and community constituencies – negotiated the Financial Sector Summit Agreements on transforming the financial sector and signed the Summit declaration on 20 August 2002. The Charter commits its participants to 'actively promoting a transformed, vibrant, and globally competitive financial sector that reflects the demographics of South Africa, and contributes to the establishment of an equitable society by effectively providing accessible financial services to black people and by directing investment into targeted sectors of the economy. Financial institutions affected by the Charter include banks, long-term insurers, shortterm insurers, re-insurers, collective investment schemes, investment managers, retirement funds, and licensed exchanges. Any other institution in the financial sector may opt to participate in the Charter. The objectives of the Charter are to: • constitute a framework and establish the principles upon which BEE will be implemented in the financial sector; • provide the basis for the sector’s engagement with other stakeholders; • establish targets and unquantified responsibilities in respect of each principle; • outline processes for implementing the charter and mechanisms to monitor and report on progress. Progress on the Financial Sector Charter Scorecard in the South African Banking Sector In pursuit of these objectives, the Charter commits financial institutions in the sector to transforming in the areas of: • Human resource development; • Procurement of goods and services; • Access to financial services; • Empowerment financing; • Ownership and control; • Corporate social investment. The study provides an overview on the above objectives of the Charter and seeks to measure and assesses in detail the progress of the banking sector regarding the six key areas of the FSC as outlined in the FSC Scorecard against the set targets of 2008. The scorecards analysed would be those that have been submitted to the Council as at the 31 December 2006. • Amalgamated Banks of South Africa (Absa Group); • FirstRand Group (including First National Bank); • Nedbank Group; • Standard Bank Group. The study will assess the performance of each bank, highlighting the positives and providing recommendations where there are shortfalls. The results will be consolidated to give an overall performance overview of the banking sector in South Africa in meeting transformational challenges faced by the country. According to the South African Reserve Bank (2008:106) the financial services sector including insurance, real estate and business services added 22% to the Gross Domestic Product (GDP) in 2007 making it the biggest contributor. It is therefore imperative for this study to be undertaken to assess and ensure that the sector commits to the process of transformation in addressing the past imbalances with regard to inclusive participation by all in the South African economy.
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The impact of bank intermediation on economic growth in South Africa, 1981-2007

  • Authors: Mashele, Shighughudwana
  • Date: 2010-11-09T06:26:59Z
  • Subjects: Economic development , Banks and banking , Finance
  • Type: Thesis
  • Identifier: uj:6958 , http://hdl.handle.net/10210/3467
  • Description: D.Litt. et Phil. , This study essentially is about the correlation between finance and economic growth. The research hypothesis postulates a direct causal correlation between bank-intermediated finance and economic growth in South Africa (SA) during the reference period. International research findings give mixed signals on the role, if any, that finance plays in economic growth. In the past, many economic commentators ignored the role of finance in economic growth, or argued that finance had no direct role in economic growth. However, contemporary research tends to assign a positive role for finance in economic growth. This has implications for economic policy-making, because policies which promote bank intermediation indirectly contribute towards enhancing prospects for economic growth, and vice versa. An innovative dimension in the discourse on the finance-economic growth nexus is introduced in this study by means of qualitatively linking bank regulation to economic growth. It is argued in this thesis that bank regulation influences the intensity and scope of the mobilisation and allocation of loanable funds in an economy. If the financial regulatory regime restricts banks from optimising their mobilisation of surplus funds, and the subsequent allocation of credit for productive investment, then the prospects for economic growth will be diminished. On the contrary, financial regulatory policies that promote bank intermediation are also likely to enhance prospects for economic growth. Moreover, financial regulation that unwittingly triggers financial crises, such as bank runs, will be harmful to the performance of the economy. This emphasises that financial regulation should be designed to create an environment in which stability reigns in the financial markets.
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Investigating client relationship needs and wants within the banking industry in South Africa

Lending patterns and adaptations made to the Grameen Bank Model in South Africa

  • Authors: Moolla, Raeesa
  • Date: 2011-12-12
  • Subjects: Microfinance , Banks and banking , Grameen Bank Model (Bangladesh) , Grameencredit
  • Type: Thesis
  • Identifier: uj:1887 , http://hdl.handle.net/10210/4241
  • Description: M.A. , In South Africa, high unemployment rates, uneven distribution of opportunities and poverty are major concerns for the government. Poverty is defined as the deprivation of people due to the lack of access, and their right, to certain commodities. In 2004, close to 15,4 million people were living below the poverty line. In addition to this, in 2005, 53 percent of South Africans, equating to 16,4 million persons, were excluded from formal financial services. Microcredit has been advocated as a tool to reduce poverty. A world renowned microfinance model, the Grameen Bank model of Bangladesh has had success in not only reducing poverty, but also allowing poor people access to formal financial services. The bank has 7,93 million borrowers, with 97 percent being female clients, and one third of its borrowers have crossed the poverty line. Four organisations in South Africa have replicated this model. These organisations are the Small Enterprise Foundation, Marang Financial Services, The Women's Development Businesses, and the South African National Zakah Fund. These organisations have achieved in reaching 130,000 clients across South Africa, and extended over R1 billion in loans. However, only four of the nine provinces in the country have been infiltrated effectively. The impacts on these borrowers lives, and their households has been exceptional. Many of the families now have increased selfworth, a stable income, job security and access to credit in order to advance their businesses. In addition, Grameencredit has allowed thousands of South Africans access to legal, formal financial services. Thus, Grameencredit has been advocated to be an effective method in the fight against poverty.
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An assessment of Peoples Bank Business' service to SMME's sponsored by the Khula Indemnity Scheme

  • Authors: Bredenkamp, Monique
  • Date: 2012-01-16
  • Subjects: Small business , Small business finance , Banks and banking , Risk management , Commercial credit
  • Type: Mini-Dissertation
  • Identifier: uj:1910 , http://hdl.handle.net/10210/4271
  • Description: M.Comm. , South Africa's Minister of Trade and Industry, Alec Irwin, stated that "one of the most striking features of the South African economy is the underdevelopment of small and medium enterprises" (Polkinghorne, 2001). A lack of sufficient capital and credit is often a major handicap to the development of SMMEs, particularly in their early growth stages. The growth and development .ofthe small, medium and micro enterprise (SMME) sector is acknowledged by most interest groups and policy-makers as being of critical importance to South Africa's ability to address the serious problems of unemployment. The South African government suggests that the SMME sector -with the help of government support -is capable of fulfilling these obj ectives and has introduced a number of supply-side measures to promote the formerly neglected sector. The overall objective is "to create an enabling environment" and "to level the playing field" (South Africa, 1995) in terms of national, regional and local policy frameworks for SMME development. Khula Enterprise Finance Ltd. was established in 1996 in terms of a Department of Trade and Industry (DT!) initiative and provides access to credit to SMMEs through various delivery mechanisms. One of these delivery mechanisms is a scheme that was created to assist SMMEs to access finance from traditional financial intermediaries by providing guarantees on a risksharing basis. Khula Enterprise Finance Ltd. has assisted in delivering almost 103 000 loans, credit guarantees and other facilities to SMMEs since the agency started operating in 1996. The total value of the loans and guarantees exceeds R550 million (Martins, 2001). ii However, Khula Enterprise Finance Ltd. has to contend with intermediaries applying its programmes -banks that are not renowned for their spirit of adventure, and welfare-oriented service organisations that lack business acumen (Khula: Some business ... , 2002: 53). The perception among the general population in South Africa is that most banks have neither the capacity nor the will to actively and creatively manage SMME loans to South Africa's emerging markets -"emerging" meaning political customers who have not been seen as critical in the past, but who are seen as such in the future. In South Africa these are largely people of black African descent (Polkinghorne, 2001). The target of Peoples Bank Business includes previously disadvantaged communities such as black persons, women and the disabled. Additionally, clients are assisted with venture capital or loans to fund start-up businesses. Emphasis is placed on assistance to the community in addition to traditional criteria such as bottom-line results. This study attempted to assess the service provided by Peoples Bank Business to clients sponsored by the Khula Indemnity Scheme. This study did not attempt to provide solutions to problems experienced, but rather to identify the deficiencies/gaps in service as experienced by clients of Peoples Bank Business.
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The management of liquid asset and cash reserve requirements in the South African banking sector

The implementation of third wave management in the technology and operations division of Nedbank Limited

Effectiveness of inward FDI from China into the South African banking sector

Stakeholder perceptions of the relevance of corporate social responsibility policies and practices in the banking industry

  • Authors: Johnson, Darren Leslie
  • Date: 2012-06-05
  • Subjects: Banks and banking , Social responsibility of business
  • Type: Mini-Dissertation
  • Identifier: uj:2450 , http://hdl.handle.net/10210/4908
  • Description: M.Comm. , Organisations, such as the banks, have realised that it is important to be profitable while, at the same time, they need to be good corporate citizens. Banks have certain codes of practice to follow and, by investing in more than just their core business, they can improve on their corporate social responsibility (CSR) and sustainability initiatives. These CSR and sustainability practices are used as a means of demonstrating to their stakeholders that they are taking pro-active measures to behave in a manner that is socially responsible and that they are making a contribution to mitigating the socio-political effects of South Africa‟s past. However, banks might be using their CSR endeavours as a means to improve their public image rather than engaging in actual corporate citizenship. The objective of the study was to investigate stakeholders‟ perception of the relevance of CSR policies and practices in each of South Africa‟s four largest banks.
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The role of internal marketing in building corporate reputation in South African retail banking, particularly ABSA

  • Authors: Mokgoatlheng, Jacob Elias
  • Date: 2012-06-05
  • Subjects: Banks and banking , Corporate image , Communication in organizations , ABSA Bank , Reputation
  • Type: Mini-Dissertation
  • Identifier: uj:2459 , http://hdl.handle.net/10210/4916
  • Description: M.Comm. , Many authors perceive corporate reputation as one of the important intangibles for organisations. It is therefore important that organisations manage corporate reputation effectively. There are several ways by which organisations can build and maintain corporate reputation. One such way is through using internal marketing. This study intends to explore the research problem that is presented in the form of a question. What is the role that internal marketing can play to help Absa as a retail bank in South Africa build its corporate reputation?
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A comparative analysis of the usefulness of fair value in measuring the financial instruments of South African banks

  • Authors: Jooste, Cilliers Johan Cornel
  • Date: 2012-07-04
  • Subjects: Financial instruments , Fair value , Banks and banking
  • Type: Mini-Dissertation
  • Identifier: uj:8785 , http://hdl.handle.net/10210/5143
  • Description: M.Comm. , The debate around the usefulness of fair value as a basis for measuring financial instruments has become increasingly topical and, in recent times, has attracted the attention of various market participants as a result of the global credit crisis which developed during 2007. The qualitative characteristics of relevance and reliability are central to any analysis regarding the usefulness of fair value as a financial instrument measurement basis. This study therefore investigates the relevance and reliability of the fair value measurements disclosed by the four largest South African banks in their 2008 annual financial statements in order to determine whether fair value is the most useful basis for measuring the majority of the financial instruments of South African banks. The financial instrument categories and fair value hierarchy defined in International Financial Reporting Standards (IFRS) are used to perform a content analysis on the 2008 annual financial statements of the banks included in the study, in order to conclude on the relevance and reliability, respectively, of the financial instrument fair values provided. Collectively, an analysis of the financial instrument categories applied and an investigation of the differences between the fair values and carrying values of financial instruments not measured at fair value suggest that fair value is not the most relevant basis for measuring the majority of the financial assets of all of the banks included in the study, and is also not the most relevant basis for measuring the majority of the financial liabilities of three of the four banks included in the study. Based on their fair value hierarchy classification, the fair values of the majority of both the financial assets and financial liabilities of the banks included in the study were not found to be reliable. Fair value was therefore not found to be the most useful basis for measuring the majority of the financial instruments of three of the four banks surveyed, while the findings for the fourth bank were inconclusive in this respect. Keywords: Fair value, financial instruments, usefulness, relevance, reliability
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The reliability of banks’ initial assessment of individuals’ credit applications

  • Authors: De Gama, Jason Samuel
  • Date: 2013-12-09
  • Subjects: Credit analysis , Bank management , Banks and banking
  • Type: Thesis
  • Identifier: uj:7825 , http://hdl.handle.net/10210/8719
  • Description: M.Comm. (Financial Management) , If the creditworthiness of applicants for overdraft facilities is assessed inaccurately, future defaults on repayment commitments may threaten the cash flow and profitability of the bank issuing the credit. The main purpose of this study is to assess how reliable the inputs used by one large South African bank to determine the creditworthiness of individual clients applying for overdraft facilities on personal current accounts are in predicting the future behaviour of the client. The findings of this study should inform the bank in question (and other credit providers) of the extent to which the original application-based score (OABS), is an accurate predictor of a client's future behaviour after the account is opened. It will also help them to identify which of those variables are the best predictors, and so reduce the risk of default. A quantitative research methodology is employed, using secondary data on individual applications processed at one large South African banking institution between July 2006 and July 2009. The data was used to establish whether any (and which) of the input variables captured by the bank when the client originally applies for credit, are strongly associated with the behavioural risk indicator (BRI) assigned to them after the first six months (BRI 1) and twelve months (BRI 2) after being granted a loan, respectively. The findings of this study revealed that non-financial characteristics (biographical and demographic information) are not considered in the OABS; while finance-related characteristics (segment, income bands, overdraft taken up category and overdraft taken up as a percentage of gross income categories) are. The study found that there is also an association between the OABS and the behavioural scores (BRI 1 and BRI 2) allocated thereafter. In particular, the number of days the client went into excess during the initial six and subsequent six months is strongly associated with the BRI 1 and BRI 2 scores. This finding implies that, despite the utilisation of non-financial measures to determine creditworthiness scores, a client’s current behaviour is still the best predictor of future behaviour. The study concluded that, despite its low predictive power, the OABS is, however, associated with, and to a certain extent predicts, the future behaviour of clients.
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Comparative analysis of decentralised and centralised operating model in retail banking global transactional services

  • Authors: Mpala, Taurai Culbert , Chiloane, P. Thabo
  • Date: 2014-06-20
  • Subjects: Banks and banking , Decentralization in management
  • Type: Thesis
  • Identifier: uj:11558 , http://hdl.handle.net/10210/11265
  • Description: M.Com. (Business Management) , The Global Transactions Services (GTS) business unit was established alongside the Rand Merchant Bank (RMB) brand reporting into a Corporate and Investment Banking Board. GTS has been mandated to deliver global cash management, trade and custody services and account services to large corporates in the jurisdictions where FirstRand operates. Technology advances in centralising operating structures, have made it possible for GTS to centralise back office operations to a few locations within the country as witnessed by Global banks like Citigroup. The research problem therefore was to evaluate and identify the strengths as well as shortfalls of the current decentralised operating model versus a proposed approach towards a centralised operating model within the GTS business unit; focusing on investigating whether outsourcing IT operations and technology would create efficiencies, attract skilled employees and technological advancement to the division. Primary objective of the research was to evaluate the current decentralised operating model. Secondary objective was to evaluate the gains associated with implementing a central operating model against the gains currently derived from the decentralised operating model. The findings derived from the study suggest that: (i) There is a misalignment between the business strategy and IT strategy within the current operating model resulting in IT playing a supporting role and not an enabling role in the business strategy formulation and implementation. (ii) The bank does not engage in an on-going activity to evaluate processes, procedures and technology making it difficult to streamline and automate processes resulting in a lot of manual processing. (iii) The bank lacks the internal capabilities required to introduce automated processes which will reduce manual interventions; (iv) Existence of Silos in the business prevent the business from taking advantage of benefits brought about by economies of scale, cross skilling, knowledge sharing, straight through processing and ultimately economies of scope benefits
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The assessment of bank-risk in emerging markets

  • Authors: Els, Jacques Pierre
  • Date: 2014-09-15
  • Subjects: Macroeconomics , Banks and banking , Economic indicators
  • Type: Thesis
  • Identifier: uj:12278 , http://hdl.handle.net/10210/12064
  • Description: M.Com. (Business Management) , Until mid-1997, South East Asia was regarded as among the most economically successful regions of all time. Growth forecasts were very positive and current account deficits were equally satisfying, Then, on July 2, 1997, the Thai Baht suffered severe devaluation and subsequently sparked the "East Asian crisis" (Zaaiman & King, 3). The crisis started in Thailand and soon spread to Indonesia, the Philippines, South Korea and eventually Malaysia. Everyone was still measuring the spill-over effects that the Asian crisis had on other emerging markets when another piece of alarming news made the headlines. Russia's. Rouble suffered devaluation during October 1998 - slightly more than a year after the East Asian crisis first emerged. Suddenly emerging market economies became a major cause of concern and banks, like many other industries, within emerging markets were viewed with equal pessimism. The above two crises were unfortunately not the end of what was perceived to be a world-wide emerging market crisis. During December 1998, Brazil's Minister of Finance and the country's Central Banker both resigned within a short period, again sending shock waves throughout emerging markets. This situation was reminiscent of the' Mexican Peso devaluation and the crisis that followed accordingly in emerging markets in the early 1990's.
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Debate and panel discussion on the corporate psychopath : he is perfect; don’t hire him – preventing the recruitment of psychopaths

Bank employees’ engagement with communities in corporate social responsibility initiatives

  • Authors: Penn, Vincent Cho , Penn, Vincent
  • Date: 2015-04-24
  • Subjects: Banks and banking , Bank employees , Social responsibility of business
  • Type: Thesis
  • Identifier: uj:13574 , http://hdl.handle.net/10210/13717
  • Description: M.Com. (Business Management) , In the course of firms serving their own interest of securing financial profit, there is a responsibility to take action in protecting and enhancing the interest of the society in which they operate, with the total endeavour and effect of improving the quality of life. This is often done by giving back to the society in the form of community involvement projects. The main objective of this study is:  To investigate the extent to which the value chain in employee volunteering - community involvement programmes is understood and fully optimised from these stakeholders‟ perspective. There were three types of respondent groups within the entire population of Choma, involved in this study. Firstly, there was a respondent group of five senior CSR managers at Choma who manage and co-ordinate all CSR activities within the bank. They have full knowledge of the scope of Choma CSR stated objectives and what is happening in the context of Choma CSI projects, and can thus give valuable insight to the Choma CSI projects‟ current state, including successes and challenges. Two CSR projects were selected by these senior CSR managers, where one was really outstanding and one was also completed, but not considered as valuable in attaining Choma CSR objectives as good as the first. The first group of respondents are members who were actively involved in Project 1 from Choma RBB operations, while the second group was involved in Project 2, from RBB Choma personal loans. Three employees were interviewed from each project. These projects were executed in two different communities leading to two additional respondent samples drawn from the two communities. Two community members were interviewed from each community. This provides three views of the research problem and a triangulation from three different sources of CSR value to a community. All interviews were face-to-face in the respective offices of the respondents by scheduled appointments.
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Enkele aspekte van die monetiseringsproblematiek van die huidige internasionale ekonomiese stelsel

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