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A comparative analysis of African Bank Limited's credit risk disclosure

  • Authors: Ramutshila, Mbali Carol
  • Date: 2019
  • Subjects: Banks and banking - South Africa , Credit - Risk assessment , Financial statements
  • Language: English
  • Type: Masters (Thesis)
  • Identifier: http://hdl.handle.net/10210/422216 , uj:36021
  • Description: Abstract: Banks play an integral role within the financial system of a country and when a bank thrives or fails, this systematically impacts the economy of a country. The curatorship of African Bank by the SARB was an attempt to reduce the losses that would have been experienced by the users (creditors, investors, customers and employees and other banks) of African Bank. The purpose of financial statements in the Conceptual Framework is centred around the users of financial statements, that is, the financial statement should provide relevant information that is useful for decision making purposes such as to invest or not. Thus, the study’s first intent is to determine, through in-depth analysis of African Banks’ credit risk disclosure for the 2009 to 2013 financial periods, whether a pending crisis in the bank could have been detected by users to a certain extent. The second intent is to ascertain whether any lessons had been learnt in the new African Bank for the 2016 to 2017 financial periods... , M.Com. (International Accounting)
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A South African retail bank’s readiness to knowledge management implementation

  • Authors: Mogale, Elshia
  • Date: 2015-04-15
  • Subjects: Banks and banking - South Africa , Banks and banking - Risk management - South Africa , Knowledge management - South Africa
  • Type: Thesis
  • Identifier: uj:13543 , http://hdl.handle.net/10210/13660
  • Description: M.Com. (Business Management) , This study focuses on one specific knowledge management process, namely the knowledge sharing process within an operational risk management cluster of a chosen South African retail bank. The study specifically focuses on the bi- weekly meetings that are used as platforms for knowledge sharing sessions. The primary objective of the study, is to ascertain how well the corporate investment bankers, shared services and CIB Africa operational risk management cluster is effectively utilising its meetings in terms of knowledge sharing to ensure that the operational risk management strategies of the chosen bank, provides optimal assurance to its stakeholders that the bank operates within its operational risk appetite. The study is divided into five chapters. The first chapter provides the readers with a thorough understanding of the research problem and topic. The second chapter provides the theoretical framework of the literature pertaining to the context of knowledge management with a specific focus of knowledge sharing. The third chapter discusses the research methodology adopted to conduct the study. The fourth chapter discusses the empirical findings and discussion of the study. Lastly, chapter five provides conclusions, recommendations and possibilities for further research. The theoretical framework of study began by focusing broadly on the concept of knowledge management weaving its way to the specific concept of knowledge sharing. A single case research approach was adopted. All respondents were attendants of the bi-weekly knowledge sharing sessions held in the chosen bank. The empirical findings of the study revealed that there is no common awareness and understanding of the concepts of knowledge management and knowledge sharing within the chosen bank. It was further established that factors such as the role of organisational culture, leadership involvement and participation, and rewards and incentives were key factors that had the ability to either enable or hinder the knowledge-sharing within the chosen bank.
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A time-varying analysis of the sensitivity in commercial bank stock returns to market, interest rate and foreign exchange risk exposures in South Africa

  • Authors: Mazomba, Xolani
  • Date: 2017
  • Subjects: Banks and banking - South Africa , Interest rates - South Africa , Foreign exchange rates - South Africa , GARCH model
  • Language: English
  • Type: Masters (Thesis)
  • Identifier: http://hdl.handle.net/10210/245884 , uj:25477
  • Description: M.Com. , Abstract: The objective of this study is to investigate the sensitivity of the South African commercial banks to the market, interest rate and exchange rate risk exposures. The study estimates a GARCH (1,1) model using the above variables including their conditional variances. To investigate the impact of the risk premium factor, a GARCH-in-Mean model with implied volatility of the exogenous variables as explanatory variables is used. The research relies on data of the JSE Top 40 companies and the major commercial banks. The data series ranges from 2003 to 2016. Using the TED spread, the data is split into three sub-samples the period prior to the crisis, during the crisis and the post-crisis period. It was found that the bank stock returns are sensitive to the market, interest rate and exchange rate risk. The banks are found to be influenced mostly by the 1-year and 10-year rates during the low volatility periods, while during the crisis period the impact extends to even shorter periods of 1-month, 3-month and 6-month yields. Furthermore, the banks are found to be more sensitive to the exchange rate during the low volatile periods, while the small banks are the most affected during the high volatility periods. Regarding the conditional variance, the study found that the bank stock returns follow a GARCH generating process. Furthermore, the study found that the conditional volatility from the GARCH-in-Mean model was irrelevant in pricing the bank stocks during the high volatility periods. The conditional variance of the GARCH-M was estimated with an inclusion of the implied volatility of the exogenous variables: market, interest rate and foreign exchange rate returns. The study found that the parameters have a very low significance overall and the impact of the volatility from the market and foreign exchange rate tended to decline during the high volatility period; while the effect of the interest rate volatility rises during the same period.
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Analysis of operational risk in the South African banking sector using the standardised measurement approach

  • Authors: Nyathi, Mandla
  • Date: 2018
  • Subjects: Banks and banking - South Africa , Banks and banking - Risk management - South Africa
  • Language: English
  • Type: Masters (Thesis)
  • Identifier: http://hdl.handle.net/10210/403085 , uj:33761
  • Description: Abstract : Over the last decade, financial markets across the world have been devastated by operational risk-related incidents. These incidents were caused by a number of aspects, such as, inter alia, fraud, improper business practices, natural disasters, and technology failures. As new losses are incurred, they become part of each financial institution’s internal loss database. The inclusion of these losses has caused notable upward spikes in the operational risk Pillar I regulatory capital charge for financial institutions across the board. The inherent imperfections in people, processes, and systems–be it by intention or oversight–are exposures that cannot be entirely eliminated from bank operations. Thus, the South African Reserve Bank mandates South African financial institutions to reserve capital to cover their idiosyncratic operational risk exposures. Investors fund capital reserves that are held by financial institutions, and these stakeholders demand a viable return on their investment. Consequently, the risk exposure and capital held relationship should be fully understood, managed, and optimised. This thesis extends Sundmacher (2007)’s work through the use of one instance of the Standardised Measurement Approach data against that of the Advanced Measurement Approach, the Standardised Approach, and the Basic Indicator Approach to estimate the potential financial benefit that financial institutions in South Africa could attain or lose, should they move from a Basic Indicator Approach to a Standardised Approach, or from a Standardised Approach to an Advanced Measurement Approach, or from an Advanced Measurement Approach to a Standardised Measurement Approach. The Advanced Measurement Approach, a Loss Distribution Approach coupled with a Monte Carlo simulation was used. Parametric models were imposed to generate the annual loss distribution through the convolution of the annual loss severity and frequency distribution. To fit the internal loss data for each class, the mean annual number of losses was calculated and was assumed to follow a Poisson distribution. The Maximum Likelihood Estimator was used to fit four severity distributions: Lognormal;Weibull; Generalized Pareto; and Burr distributions. To determine the goodness of fit, the Kolmogorov-Smirnov Test at a 5% level of significance was used. To select the best fitting distribution, the Akaike Information Criterion was used. Robustness and stability tests where then performed, using bootstrapping and stress-testing respectively. Overall, we find that the Basel Committee on Banking Supervision’s primary consideration that postulates that there is value in a financial institution moving from the Basic Indicator Approach to the Standardised Approach, or from the Standardised Approach to the Advanced Measurement Approach is indeed valid, but fails in the movement from an Advanced Measurement Approach to a Standardised Measurement Approach. The best Pillar I Capital reprieve is offered by the Diversified Advanced Measurement Approach, whilst the second best is the Standardised Measurement Approach based on an average total loss threshold of €100k (0.87% higher than the Diversified Advanced Measurement Approach), closely followed by the default Standardised Measurement Approach based on average total loss threshold of €20k (5.63% higher than the Diversified Advanced Measurement Approach). To the best of our abilities, we could not find any work that is comprehensive enough to include all four available operational risk quantification approaches (Basic Indicator Approach, Standardised Approach, Advanced Measurement Approach, and Standardised Measurement Approach), for the South African market in particular. This work foresees South African financial institutions pushing back on the implementation of SMA, and potentially lobbying the regulator to remain in AMA – as the alternative might mean increased capital requirements leading to reduced Economic Value Added to shareholders (as more capital is required at the same level of profitability or business activity). The financial institutions are anticipated to sight advanced modelling techniques as helping management have a deeper understanding of their exposures – whilst the Scenario Analysis process allows them a method of identifying their key risks and quantifying them (adding to management’s tools set). However, if South African financial institutions want to compete at a global stage and wanted to be accepted among ‘internationally active’ institutions – their adoption of SMA may not be a choice but an obligation and an entry ticket to the game (global trade). , M.Com. (Financial Economics)
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Barriers to career progression : perceptions of black African middle managers in the South African banking sector

  • Authors: Mayiya, Sive-Thina
  • Date: 2017
  • Subjects: Banks and banking - South Africa - Reorganization , Banks and banking - South Africa , Affirmative action programs - South Africa
  • Language: English
  • Type: Masters (Thesis)
  • Identifier: http://hdl.handle.net/10210/272649 , uj:29033
  • Description: M.Com. (Business Management) , Abstract: The Employment Equity Act No. 55 (1998) states it purpose as, the promotion of equal opportunity and fair treatment in employment through the elimination of unfair discrimination, and the implementation of affirmative action measures to redress the disadvantages experienced by designated groups in employment, so as to ensure their equitable representation in all occupational levels in the workplace. The level and pace of transformation in a variety of industries has been a topical issue for a number of years, the recent parliamentary commission hearings on transformation in the financial services sector are a testament to this. The financial services sector, through the Financial Sector Charter, claims to have been the first industry to voluntarily commit to the achievement of the transformation objectives. Over the years, however, banking institutions in South Africa have failed the transformation targets agreed to in the Financial Sector Charter for one or more occupational levels. The main objective of this study was to assess the perceptions of black African middle managers about the barriers to the career progress into senior management level positions in the banking sector in South Africa. The secondary objectives included determining how black African middle managers define career progression; establishing what their perceptions of the required skills and personal attributes are for senior management in the banking sector are; as well as whether the black African middle managers within the banking sector believe they have the requisite skills and personal attributes required to progress into senior management; to determine whether black African middle managers believed that they had equitable opportunities as other race groups to advance in their organisations and finally to determine what, in the opinion of the respondents, needs to be done to overcome these barriers to their career progression. The literature review section provides a detailed summation of the legislative or regulatory frameworks of employment equity, Broad-Based Black Economic Empowerement as well as the Financial Sector Charter. It also provides a conceptualisation of career progress and diversity management. Areas that could...
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Capital account liberalization and financial institutions: the case of South Africa during the Asian contagion

  • Authors: Maphumulo, Thobelani L.
  • Date: 2012-08-23
  • Subjects: Financial crises - Asia , Capital movements , Finance - South Africa , Banks and banking - South Africa
  • Type: Thesis
  • Identifier: uj:3125 , http://hdl.handle.net/10210/6545
  • Description: M.A. , The objective of this thesis was to discuss capital account liberalization and banking crises in emerging markets, against the backdrop of the Asian financial crisis in 1997. This was discussed with an underlying objective of evaluating the soundness of the South African banking system. The basis of this thesis was that a sound banking system coupled with good macroeconomic policies would make South Africa less vulnerable to global financial volatility. On the East Asian financial crisis, we found that the main cause of this crisis was the lack of prudent lending practices by most banking institutions. Lending practices were largely shaped by institutionalized corruption. Bad lending practices originated from connected lending as banks were owned and had strong links with big family conglomerates. These conglomerates were highly leveraged with very low profit margins and survived on cross-subsidization. As a result, they could not service their debts, resulting in large bad debts and non-performing loans in the banking systems. These non-performing loans and debt defaults had significant negative effects on banks' profitability and business survival, as they eroded earnings and shot up credit exposure. Furthermore, we also found that governments' political influence in the lending system and weak macroeconomic management (large current account deficits, fixed exchange rates and expansionary fiscal policies) contributed significantly to the East Asian financial fragility. Against this background, we recommend that emerging markets that want to liberalize their capital accounts should ensure that sound banking systems are properly entrenched. When financial systems are not strong, emerging countries would be exposed to imprudent credit risk assessments by banking institutions, resulting in nonperforming loans and collapse of those banking institutions. Secondly, our view is that emerging markets should pursue and adhere to the core banking principles of the Basel Committee on Banking Supervision. The objective of these principles is to ensure that banks operate profitably and have good business frameworks. The Basel Committee requires commercial banks to have solid and efficient supervision departments, with strong intentions of evaluating credit risks associated with loans and advances. Furthermore, central banks or any other custodians of banking institutions should have capital adequacy requirements in order to protect depositors and investors against any unforeseen liquidity pressures. From this thesis, we found that the South African banking system is sound. The low level of non-performing loans in the domestic banking system is indicative of prudent credit risk management. Even with prime interest rates at an all time high of 25% in late 1998, most banks managed to escape large non-performing loans, especially from the corporate sector. The brunt was mostly felt in the small business sector and household debt category. The South African Reserve Bank's Supervision Department sets out stringent guidelines with regard to the lending practices of banks. Banks are not allowed to overexpose themselves to particular clients, as was the case in East Asia. This also extends to deposits. Banks are not allowed to take deposits above 25% from a single source. The objective is to guard against liquidity pressures that could occur when that particular depositor withdraws the funding.
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Cyber risk management frameworks for the South African banking industry

  • Authors: Koto, Caroline
  • Date: 2019
  • Subjects: Computer crimes , Cyberspace - Security measures , Business - Data processing - Security measures , Business enterprises - Computer networks - Security measures , Risk management , Banks and banking - South Africa
  • Language: English
  • Type: Masters (Thesis)
  • Identifier: http://hdl.handle.net/10210/403209 , uj:33776
  • Description: Abstract : Information technology (IT) has proven to be critical in the operation of businesses today. The banking industry is one of the industries that are most reliant on IT. The banking industry has enjoyed greater efficiency and effectiveness in their operations owing to the widespread use of IT. However, due to IT and continuous technological advancements, new threats such as cyber risk have surfaced, and the banking industry has experienced the most cybercrime incidents. In addition to the banking industry being the most targeted by cyber-criminals, cybercrime incidents have detrimental impacts on the industry. As a result, it is crucial for banks to employ effective cyber risk management processes. The South African banking industry is required by the South African Reserve Bank (SARB) to align their cyber risk management processes to the cyber resilience guidance document issued by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO). The CPMI–IOSCO cyber resilience guidance contains guidelines that should be addressed within a bank’s cyber risk management framework. This study seeks to establish whether the Improving Critical Infrastructure Cybersecurity (ICIC) framework addresses the guidelines contained in the CPMI–IOSCO cyber resilience guidance. The ICIC framework is effective for managing cyber risk and allows an organisation to modify it to suit its specific needs and objectives. The objective of the study is to recommend to the South African banking industry, a framework for managing cyber risks that is effective and that addresses the CPMI–IOSCO cyber resilience guidelines. The results were gathered by analysing the ICIC framework and mapping it against the CPMI–IOSCO cyber resilience guidelines. The results revealed that the ICIC framework addresses up to 71 percent of the CPMI –IOSCO cyber resilience guidelines. The study therefore recommends that instead of building a new cyber risk management framework, the South African banking industry should adopt the ICIC framework and modify it by adding the 29 percent of the CPMI –IOSCO cyber resilience guidelines not addressed by the ICIC framework. All the guidelines contained in the CPMI–IOSCO cyber resilience guidance will then be addressed within the modified ICIC framework. South African banks will also achieve effective management of cyber risks through the ICIC framework. , M.Com. (Computer Auditing)
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Determinants of financial performance of commercial banks and other financial institutions in South Africa

  • Authors: Moyo, Irvine Tafadzwa
  • Date: 2018
  • Subjects: Banks and banking - South Africa , Financial institutions - South Africa
  • Language: English
  • Type: Masters (Thesis)
  • Identifier: http://hdl.handle.net/10210/296002 , uj:32243
  • Description: Abstract: The closure of African Bank Investments Limited (ABIL) in 2014 and also a myriad of challenges facing the commercial banks and other financial institutions led to this research. The major aim was to address the badgering question: What are the drivers/determinants of financial performance of commercial banks and other financial institutions? The main objective of the research is to find these determinants of financial performance of commercial banks and then compare them with other factors found in other financial institutions which are non-commercial banks (i.e. financial institutions which do not have a commercial banking licence, but are still in the same industry). The literature was drawn from South African studies on the financial performance of financial institutions. They included other sources in Africa and also from the rest of the world. The literature helps in building up the appropriate methodology to be used to answer the basic hypotheses questions: Do bank-specific factors determine the financial performance of financial institutions, is it the macroeconomic factors which are the major determinants, or is it both? These hypotheses were broken down into sub-hypotheses (which are anchored on the explanatory variables). The explanatory variables used in the study are: bank-specific factors (i.e. bank size, solvency, capital adequacy, liquidity asset quality, debt management, management efficiency) and macroeconomic factors (economic growth, inflation and interest rates). The dependent variables for the research are: return on equity, return on assets, and net interest margin. The proposed methodology was drawn from three distinct models using the dependent variable – ROE Model, ROA Model and NIM Model. The data range is biannual from 2007:1 to 2017:1. The econometric model employed was the panel regression model, pooling together three commercial banks and three other financial institutions. The panel regression models, i.e. fixed effects and random effects models, were implemented to analyse the relationship between dependent and independent variables. However, the Hausman test on both models was used to determine which of the two regression analysis was more appropriate. In all instances, the fixed effects model was chosen. There were two scenarios which the research employed in order to fully test the hypotheses and also achieve its goal of comparative analysis. Scenario 1 (Combined scenario) was pooling all the financial institutions together in a six cross sectional panel regression analysis. Scenario 2 (Comparative scenario) was pooling three commercial banks and three other financial intuitions separately. The results showed that the financial performance was diverse for both commercial banks and other financial institutions... , M.Com. (Finance)
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Determination of net interest margin drivers for selected financial institutions in South Africa : a comparison with other capital markets

  • Authors: Mudzamiri, Kizito
  • Date: 2013-05-01
  • Subjects: Banks and banking - South Africa , Financial institutions - South Africa , Net interest margins , Classical Linear Regression Model , Ordinary Least Squares data estimating technique , Bank profits - South Africa , Interest rates - South Africa
  • Type: Thesis
  • Identifier: http://ujcontent.uj.ac.za8080/10210/379972 , uj:7473 , http://hdl.handle.net/10210/8331
  • Description: M.Comm. (Financial Management) , There is a wide perception that bank net interest margins (NIMs) in Sub-Saharan Africa in general and South Africa in particular, are higher compared to other regions. The study investigates four commercial banks in South Africa with the aim of identifying the relevant factors affecting the behaviour of NIMs in commercial banking in South Africa, and draws comparisons with other markets. The study employs the Classical Linear Regression Model (CLRM) using the Ordinary Least Squares (OLS) data estimating technique to analyse net interest margins over the period 2000 to 2010. The study takes note of Ho and Saunders’s seminal work produced in 1981, and subsequent extensions and modification by other authors and researchers. Net interest margins are modeled in a single-step together with explanatory variables driven from the theoretical model. Using data obtained from the Bankscope data base, the variables examined in the study are; competitive structure of the market, average operating costs, management’s propensity for risk aversion, credit risk exposure, the quantum of the bank’s operations, short-term money market interest rate volatility, the opportunity cost of holding reserves and quality of management running the institution. The findings of the study suggest that market power, average operating costs, degree of risk aversion, credit risk exposure, and size of operations are major factors explaining the behaviour of NIMs in South Africa. These variables are major in terms of the number of banks that exhibit statistical significance. Market power, interest rate volatility and opportunity cost of holding reserves are also relevant factors, although they affect fewer banks than the major factors. Comparison of South African net interest margins determinants with those from other regions reveals some fundamental differences. These differences indicate that banks from different countries and regions are faced with different operating environments and risk profiles that drive net interest margins.
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Die bankgeheimnis in die Suid-Afrikaanse reg

Die belastinghantering van rente, buitelandse valuta en slegte en twyfelagtige skulde deur handelsbanke

  • Authors: Steenkamp, Magda
  • Date: 2012-09-05
  • Subjects: South Africa. Income Tax Act (1962) , Banks and banking - South Africa , Banking law - South Africa , Income tax - South Africa , Interest - Law and legislation - South Africa , Debt - Law and legislation - South Africa
  • Type: Thesis
  • Identifier: uj:3601 , http://hdl.handle.net/10210/6981
  • Description: M.Comm. , Due to uncertainties experienced while working for the South African Revenue Services and the fact that there are no specific sections in the Income Tax Act no. 58 of 1962 dealing with interest, foreign exchange and bad and doubtful debts of commercial banks there were a need to undertake a study. The study therefore undertakes an examination to determine if the existing sections of the Income Tax Act dealing with interest, foreign exchange and bad and doubtful debts are enough legislation to deal with the interest, foreign exchange and bad and doubtful debts of commercial banks. The study also try to clear all existing uncertainties experienced and mentioned in this study. The study can be divided into the following four parts: A literature study of the definition of "bank" and "banking operations", in terms of history and current legislation. A study of the definition of "interest" and "finance charges", in terms of sections of the Income Tax Act, Act no. 58 of 1962 and applicable court cases. The chapter also concentrates on the application of section 24J of the Income Tax Act on the interest-transactions of commercial banks as well as the identification of any short falls of the section. Before interest can be treated in terms of section 24J of the Income Tax Act, the source of the interest will have to be in South Africa. General sourse principles applicable to commercial banks as well as the deductability of interest expenses when expenced to generate exempt income will therefore also be covered in this chapter. A study of the application of section 241 of the Income Tax Act dealing with the foreign exchange of commercial banks. An examination of the way commercial banks should treat their bad and doubtful debts and the factors taken into account in court decisions relating thereto. The most important activities of a bank are identified in this study as the acceptance of deposits, the provision of credit, rendering of financial services and the trade in exchange and the utilisation of money and interest received. In terms of section 24J of the Income Tax Act, interest include finance charges, premiums or disconto's, all interests and the difference between all amounts payable or receivable in terms of a sale and leaseback agreement. It was found that all the interest of a commercial bank are included in the definition of interest and all the transactions of a commercial bank are treated in terms of section 24J of the Income Tax Act for income tax purposes. Section 241 of the Income Tax Act focuses on foreign exchange transactions and are found to be enough legislation for the foreign exchange transactions of commercial banks. Although bad and doubtful debts are not part of the activities of a commercial bank they are part of the uncertainties experienced while working for the South African Revenue Services. During the study it was found that doubtful debts can not be deducted in terms of section 11(a) of the Income Tax Act but only in terms of section 11(j) of the Income Tax Act. It is practice for the South African Revenue Services to only allows 25% of the full amount of doubtful debts, but as this discretion is subject to objection and appeal, the bank is entitled to claim a higher percentage as a deduction if they can provide proveto justify a higher deduction. It was also found that commercial banks can claim their bad debts in term of section 11(a) of the Income Tax Act.
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Die gebruik van bestuursinligtingstelsels in bankinstellings met spesifieke verwysing na die rol wat dit speel ten psigte van beplanning en beheer

Die invloed van monetêre veranderlikes op die bate- en lastestruktuur van banke

  • Authors: Swartz, Le'ande
  • Date: 2015-02-09
  • Subjects: Monetary policy , Banks and banking - South Africa
  • Type: Thesis
  • Identifier: http://ujcontent.uj.ac.za8080/10210/378011 , uj:13205 , http://hdl.handle.net/10210/13231
  • Description: M.Com. (Economics) , The aim of this study is to identify the various monetary variables financial risks involved in the structuring of the Asset and Liability portfolio of a bank and to establish their influence on a dynamic financial system. The implementation of a successful Asset and Liability management plan is the ultimate objective of trying to maximize capital gains. Therefore, the success of such a management plan lies in its ability to limit the exposure of the bank to financial risks and monetary variables and finally to increase profitability. In this study an attempt is made to create a portfolio management plan. For this purpose a linear optimization computer nodal, is used. In order to obtain better understanding of the financial system in 'which such a portfolio management plan is implemented, a description of both the international and local financial systems ,including a comparison between the South African and United States markets,is set out in this study. In chapter V the strategy to limit financial risk exposure used in the United States' is discussed. Following a comparison made between the workings of the South African and United States financial markets, the conclusion is that, given a few adjustments, the same strategy could be used in the South African financial system...
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Dispute resolution in the banking industry : a comparative analysis of the legal framework in South Africa and Lesotho

  • Authors: Kolobe, Refiloe Marethabile Sylvia
  • Date: 2018
  • Subjects: Dispute resolution (Law) - South Africa , Dispute resolution (Law) - Lesotho , Banks and banking - South Africa , Banks and banking - Lesotho
  • Language: English
  • Type: Masters (Thesis)
  • Identifier: http://hdl.handle.net/10210/270958 , uj:28810
  • Description: LL.M. (Commercial Law) , Abstract: The clients of the banks in Lesotho are not aware or have little knowledge of the dispute-resolution mechanism that they need to follow when they have a complaint with their banks. This is due to the fact that the Code of Banking Practice in Lesotho is not brought to the attention of the bank’s clients. It is also due to the fact that there are currently no laws aimed at protecting the consumers in Lesotho, so, therefore, consumers when they have a complaint or a dispute with the service providers, resort to litigation which is costly and time consuming. This study is aimed at looking at the way the banking industry in South Africa resolves the disputes between the banks and their clients, and to compare the legal framework of South African dispute-resolution mechanisms to that of Lesotho, which in my view is not effective and efficient. In Lesotho there is no ombudsman for banking services. The Code of Banking Practice in Lesotho simply provides that the client can take its complaints to the Central Bank of Lesotho which currently regulates and supervises the financial institutions in Lesotho. The study investigates the reasons why the Ombudsman for Banking Services was created in South Africa, and considers the advantages and disadvantages of having an independent body to resolve the disputes between a bank and its clients. The purpose of the study is to discover the importance of dispute resolution in the banking industry and also to learn how other jurisdictions conduct their dispute resolution in the banking industry and to make recommendation for developing countries like Lesotho which still lag in this regard.
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Factors affecting female generation Y consumer’s selection of a bank

  • Authors: De Broize, Cézanne Catherine
  • Date: 2015
  • Subjects: Banks and banking - South Africa , Banks and banking - Customer services - South Africa , Generation Y , Women consumers
  • Language: English
  • Type: Masters (Thesis)
  • Identifier: http://hdl.handle.net/10210/82185 , uj:18932
  • Description: Abstract: The South African retail banking industry is a highly competitive environment where major industry players compete for the largest market share of the banked and unbanked consumer market. The consumer segment of focus in this study is the female Generation Y consumer, due to their high disposable incomes, technological savviness, and brand consciousness. Within the retail banking industry in South Africa, the number of formally banked female consumers has increased to 87%, and is noted as being significantly higher than the number of formally banked male consumers, which is 81%. To maintain the largest market share, the major South African retail banks must determine the factors and variables that influence the female Generation Y consumer’s selection of a retail bank, so as to attract consumers from competing retail banks, as well as proactively prevent the attrition of their current consumers. The primary objective of the study was to determine the factors that had an influence of the female Generation Y consumer’s selection of a retail bank using consumers residing in the Gauteng province. The aim of the study was to identify the factor dimensions for purchase intention when selecting a retail bank. These factor dimensions were identified, through a literature review and previous studies, namely price, product selection, innovation, status, and peer referral. A descriptive research approach was followed and data was gathered, using quantitative research methods. A self-administered questionnaire was administered through convenience sampling to research participants at universities, shopping malls, and banking halls, within the Gauteng province. The target population for this study was limited to research participants between the ages of 18 and 36 years, who held a bank account with one of the five major South African retail banks (ABSA, FNB, Standard Bank, Nedbank, and Capitec Bank). A total of 300 questionnaires were distributed and 274 were retained for data analysis. Pearson product moment correlation analysis and regression analysis were used to test the influence of the relationships between various variables in the study. The peer referral subscale developed as a two-factor solution and was split into recommendation and trustworthiness. The remaining subscales were all considered valid... , M.Com. (Business Management)
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Graduate unemployment in South Africa’s banking sector

  • Authors: Oluwajodu, Faith Moromoke
  • Date: 2014-06-11
  • Subjects: College graduates - Employment - South Africa , Skilled labor - South Africa , Unemployment - South Africa , Banks and banking - South Africa , Bank employees - South Africa
  • Type: Thesis
  • Identifier: uj:11520 , http://hdl.handle.net/10210/11215
  • Description: M. Com. (Development Economics) , In recent years unemployment has received considerable international attention from scholars, policy makers, and labour practitioners, because it has reduced economic welfare, reduced output, and eroded human capital. Researchers argue that South Africa is faced with structural unemployment because of the insufficient demand for low-skilled resources and the sufficient demand for highly skilled resources. However, in terms of highly skilled resources, young South Africans have become better educated over the last decade, resulting in a significant growth in the size of the graduate labour force. This growth emanates particularly from the fact that the majority of the graduate labour force has completed their tertiary education. Despite this growth, graduate unemployment appears to be rising along with the overall unemployment rate. The aim of this study is to sensitise policy authorities to the impact of graduate unemployment on the economy by highlighting the perceived causes of graduate unemployment in South Africa’s banking sector. The research was conducted with the aid of a survey administered to two groups, namely a graduate group and a human resource (HR) manager group. The result derived from the research shows that the quality of tertiary institutions which relates to educational standards and culture, the quality of education, high expectations, a shortage of skills, a lack of work experience, and a lengthy process of application and job search are perceived to be the possible causes of graduate unemployment in South Africa. The study makes several tentative recommendations relating to what can possibly be done to reduce graduate unemployment. Among the recommendations proposed are the improvement of the quality of education and institutions, a well-planned career guidance mechanism, and a graduate recruitment subsidy.
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Interpretation of ‘liquidation proceedings’ in terms of Section 131(6) of the Companies Act : a case analysis of Richter v ABSA Bank Limited

Interpretation of “liquidation proceedings” : a discussion of Richter v ABSA Bank Limited

Islamic finance reporting : evidence from South Africa

  • Authors: Patel, Zaheera
  • Date: 2018
  • Subjects: Banks and banking - Religious aspects - Islam , Banks and banking - South Africa , Finance - Religious aspects - Islam
  • Language: English
  • Type: Masters (Thesis)
  • Identifier: http://hdl.handle.net/10210/292354 , uj:31769
  • Description: Abstract: The Islamic financing sector has grown exponentially around the world in recent years. With a significant growth rate of 8.3% in 2017, the total worth of the sector surpassed USD 2 trillion, establishing the dominance of the Islamic banking industry. Islamic Financial Institutions (IFIs) around the world are required to prepare financial statements in accordance with International Financial Reporting Standards (IFRS), however, at the same time, they are required to uphold to the principles of Shari’ah. In order to achieve standardised accounting applications and compliance with the principles of Shari’ah, an industry-led, non-profit corporate body known as the Auditing and Accounting Organization for Islamic Financial Institutions (AAOIFI) was established. To this end, AAOIFI has developed a framework of standards to provide guidance for IFIs. South African IFIs are thus required to comply with local regulations, namely, IFRS, while also adhering to the principles of Shari’ah through AAOIFI. This means that South African IFIs would need to maintain two books of accounts  one prepared in accordance with IFRS and the other prepared in accordance with AAOIFI. Early indications suggest that the recognition and measurement of items between the reporting frameworks of IFRS and AAOIFI are the same or similar, however, the presentation and disclosure may differ between the two frameworks. This study analysed the differences between the financial statements prepared in accordance with IFRS and those prepared in accordance with AAOIFI for a South African IFI, Albaraka Bank Ltd. The study also considered the impact of the differences (if any) on the financial ratios of the IFI. The research took a two-step approach, first conducting an in-depth literature review, followed by an empirical evaluation based on an intrinsic case study approach. A comparative content analysis was thus conducted on the IFRS and AAOIFI financial statements of Albaraka Bank Ltd for the reporting periods ended 31 December 2015 and 31 December 2016. The findings suggest that in most instances, recognition and measurement were the same between IFRS and AAOIFI. However, differences were noted in the presentation and disclosure between the financial statements prepared in accordance with IFRS and AAOIFI. One key finding was that AAOIFI requires items classified as equity from... , M.Com. (International Accounting)
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Modelling aggregate risk of the South African banking industry in the context of the Basil Pillar II framework

  • Authors: Khoza, Dingaan Jack
  • Date: 2017
  • Subjects: Banks and banking - South Africa , Banks and banking - Risk management - South Africa , Bank capital - South Africa , Financial statements - South Africa , Copulas (Mathematical statistics)
  • Language: English
  • Type: Masters (Thesis)
  • Identifier: http://hdl.handle.net/10210/245834 , uj:25470
  • Description: M.Com. , Abstract: This study uses the aggregate balance sheet and income statement of South African banks to implement a risk aggregation model that aggregates credit, market and operational risks with the aim of generating total risk estimates using both Value at Risk (VaR) and Expected Shortfall (ES) as risk measures. The results are thereafter used to determine the supplemental Pillar II economic capital required in order to maintain the capital adequacy of the South African banking industry. We first model the return distributions due to credit and market risk using a multivariate risk factors sensitivity model, with the macroeconomic risk factors’ dynamics modelled through an asymmetric GARCH (generalize Autoregressive Conditional Heteroskedasticity) model designed by Baba, Engle, Kraft and Krona (1990) (i.e. BEKK). Operational risk losses are assumed to follow a lognormal distribution. The Gaussian copula and t-copulas are then used to aggregate the three loss distributions (i.e. credit, market and operational risk distributions). The total risk given by copulas is compared to the total risk calculated through the less complex simple additive and variance-covariance methods. Our results suggest that the South African banking sector’s Pillar I regulatory capital as at end of December 2015 should be supplemented by an amount of approximately 52 billion ZAR when using as a benchmark the Gaussian copula risk aggregation model measured through the ES metric at 99.9% confidence level. These results suggest that the Pillar 2A capital requirement imposed by the SARB should double from the current maximum of 2% to 4%.
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