The consistency between the theory and practice of Islamic banking in South Africa
- Authors: Aboo, Faizal
- Date: 2016
- Subjects: Banks and banking - South Africa , Banks and banking - Religious aspects - Islam
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/237191 , uj:24299
- Description: M.Com. (Development Economics) , Abstract: Since the first Egyptian experiment in 1963, Islamic banking has grown rapidly. The establishment of the Islamic Development Bank and the Dubai Islamic Bank in 1975 were watershed moments in modern Islamic economics. Its growth has been recorded at an average of 10-15% per year and the industry is worth over $1 trillion. Growth in the Middle Eastern countries has resulted in unprecedented growth which has further resulted in the introduction of Islamic banking products in conventional banks. This growth has equally been seen in the South African banking market with the establishment of Islamic banking products through most conventional banks. This paper aims to establish if there is a mismatch between the ideal of Islamic banking and the practical application of it. To answer this question this paper seeks to establish a link between the rate of interest and the rate of profit and establish if there exists a long-term relationship between the South African interest rate and the rates of return offered on Islamic banking instruments. An empirical analysis which includes a cointegration test followed by an error correction model seeks to prove this hypothesis. Results from the empirical analysis were consistent with the economic theory of the link between the rate of interest and the rate of profit. It was noted that within the South African model, the Islamic Sukuk has a long-term relationship with the STeFI which is used as a proxy for the South African interest rate. The subsequent error correction model shows that Islamic Sukuk lags the STeFI by one period and corrects for disequilibrium in the following period; this further compounds the economic theory on offer in that the Sukuk is always behind the STeFI and always needs to adjust to it.
- Full Text:
- Authors: Aboo, Faizal
- Date: 2016
- Subjects: Banks and banking - South Africa , Banks and banking - Religious aspects - Islam
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/237191 , uj:24299
- Description: M.Com. (Development Economics) , Abstract: Since the first Egyptian experiment in 1963, Islamic banking has grown rapidly. The establishment of the Islamic Development Bank and the Dubai Islamic Bank in 1975 were watershed moments in modern Islamic economics. Its growth has been recorded at an average of 10-15% per year and the industry is worth over $1 trillion. Growth in the Middle Eastern countries has resulted in unprecedented growth which has further resulted in the introduction of Islamic banking products in conventional banks. This growth has equally been seen in the South African banking market with the establishment of Islamic banking products through most conventional banks. This paper aims to establish if there is a mismatch between the ideal of Islamic banking and the practical application of it. To answer this question this paper seeks to establish a link between the rate of interest and the rate of profit and establish if there exists a long-term relationship between the South African interest rate and the rates of return offered on Islamic banking instruments. An empirical analysis which includes a cointegration test followed by an error correction model seeks to prove this hypothesis. Results from the empirical analysis were consistent with the economic theory of the link between the rate of interest and the rate of profit. It was noted that within the South African model, the Islamic Sukuk has a long-term relationship with the STeFI which is used as a proxy for the South African interest rate. The subsequent error correction model shows that Islamic Sukuk lags the STeFI by one period and corrects for disequilibrium in the following period; this further compounds the economic theory on offer in that the Sukuk is always behind the STeFI and always needs to adjust to it.
- Full Text:
The effect of non-interest income on the profitability of South African commercial banks
- Authors: Amod, Farah
- Date: 2016
- Subjects: Banks and banking - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/237194 , uj:24300
- Description: M.Com. (Finance) , Abstract: Banking in emerging markets has recently seen a decline in traditional interest earning activities towards newer diversified business strategies that yield noninterest revenue. This change has been provoked by numerous factors, the most prevalent being the rate of technological and structural advancement as well as the heightened post-financial crises focus on mitigating interest rate risk and credit risk exposure. This study investigated whether the observed shift into activities that generate noninterest revenue (NIR) rather than net interest income (NII), improves financial performance. Previous research in this regard offers varying results across the globe and is specifically limited for the South African context. The results of this study aims to close the gap and thereby influence decision and policy makers within the South African banking industry to strategise appropriately taking into account the significant drivers of financial performance. Secondary data was obtained for a sample of four of South Africa’s largest banks, for periods both before and after the 2007/8 financial crisis. A quantitative research inquiry approach was followed incorporating both regression and correlation analysis. The results found that banks with higher NIR to gross revenue percentages exhibit better performance and that NIR is largely a significant determinant of that performance. NIR was also found to exhibit negative correlation to NII, emphasising the credibility of NIR as a means of diversification for South African banks.
- Full Text:
- Authors: Amod, Farah
- Date: 2016
- Subjects: Banks and banking - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/237194 , uj:24300
- Description: M.Com. (Finance) , Abstract: Banking in emerging markets has recently seen a decline in traditional interest earning activities towards newer diversified business strategies that yield noninterest revenue. This change has been provoked by numerous factors, the most prevalent being the rate of technological and structural advancement as well as the heightened post-financial crises focus on mitigating interest rate risk and credit risk exposure. This study investigated whether the observed shift into activities that generate noninterest revenue (NIR) rather than net interest income (NII), improves financial performance. Previous research in this regard offers varying results across the globe and is specifically limited for the South African context. The results of this study aims to close the gap and thereby influence decision and policy makers within the South African banking industry to strategise appropriately taking into account the significant drivers of financial performance. Secondary data was obtained for a sample of four of South Africa’s largest banks, for periods both before and after the 2007/8 financial crisis. A quantitative research inquiry approach was followed incorporating both regression and correlation analysis. The results found that banks with higher NIR to gross revenue percentages exhibit better performance and that NIR is largely a significant determinant of that performance. NIR was also found to exhibit negative correlation to NII, emphasising the credibility of NIR as a means of diversification for South African banks.
- Full Text:
Factors affecting female generation Y consumer’s selection of a bank
- De Broize, Cézanne Catherine
- 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)
- Full Text:
- 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)
- Full Text:
The management of banks in South Africa : legal and governance principles
- Authors: De Jager, Johannes Jurgens
- Date: 2012-08-14
- Subjects: Corporate governance - Law and legislation - South Africa , Corporation law - South Africa , Banks and banking - South Africa
- Type: Thesis
- Identifier: uj:9205 , http://hdl.handle.net/10210/5655
- Description: LL.D. , Banks are important institutional mechanisms in local and international markets. In general a bank is required to fulfil the important function, inter a/ia, of collecting the general public's savings and channelling it into productive investments in the economy. As part of this process a bank subjects mainly depositors' funds to various types of risk in an endeavour to generate profits. It results in the level of risk exposure assumed by the bank normally being much higher than the actual level of the bank's capital. This gearing effect may unfortunately act as an incentive for directors and management ("management") of a bank to subject depositors' funds to outrageous risks in a quest to earn extraordinary profits. Under such circumstances the chances of gain may be unreasonably small in comparison with the high probability of loss of the depositors' funds and the (possible) failure of the bank. In addition, the danger exists that the failure of a bank may cause the demise of other banks or may even result in the failure of whole financial systems. Therefore, in view of the worldwide expansion of banks, the Bank for International Settlements (together with other international bodies) is involved in developing and maintaining uniform international minimum standards of supervision on a global scale. Regulators worldwide are required to adhere to these standards if the banks in their jurisdictions are to participate in the international financial markets. In South Africa, the Banks Act, 1990 (Act No. 94 of 1990), provides for the regulation and supervision of banks, which banks (other than branches of foreign banks and mutual banks) are required to be public companies. This company structure offers persons who are equipped with special managerial abilities and skills the opportunity to manage and control the company's business. Accordingly, the worldwide phenomenon of the separation between the shareholders and management of the company (concomitant with virtually unlimited managerial freedom) extant in large public companies exacerbates the risk of the loss of deposits occasioned by negligence or misdemeanour on the part of management of banks. Moreover, market forces and principles of South Africa's statutory and common law pertaining to the duties of management fail to provide the necessary system of countermeasures to guard against the exploitation by management of the business of a bank and to reduce the risk of loss to depositors. Consequently, considerations of public interest dictate that the principles of a free-market economy be supplanted by legislation that introduces prescriptive rules with regard to the regulation and governance of the management of banks. The purpose of such legislation should be to rectify market failures and to protect the interests of depositors. It must also provide the Registrar of Banks with an adequate structure to oversee compliance with international minimum standards of regulation and governance pertaining to the management of banks. In this vein, the study undertaken in this thesis has resulted in draft pro forma legislation aimed at addressing the designated needs and standards. Should legislation of this nature be introduced and applied to the management of banks in South Africa, it would not only ensure compliance with internationally recognised regulatory and governance standards, but should also protect the interests of depositors. The proposed legislation ought to minimise the risk of the loss of deposits and should contribute towards maintaining/restoring the confidence of the general public in the financial system of South Africa. It would also enhance the process of ensuring that only fit and proper persons are appointed as managers, and continue to manage a bank and/or bank controlling company. The pro forma legislation is designed to be enacted as amendments to the current provisions of the Banks Act.
- Full Text:
- Authors: De Jager, Johannes Jurgens
- Date: 2012-08-14
- Subjects: Corporate governance - Law and legislation - South Africa , Corporation law - South Africa , Banks and banking - South Africa
- Type: Thesis
- Identifier: uj:9205 , http://hdl.handle.net/10210/5655
- Description: LL.D. , Banks are important institutional mechanisms in local and international markets. In general a bank is required to fulfil the important function, inter a/ia, of collecting the general public's savings and channelling it into productive investments in the economy. As part of this process a bank subjects mainly depositors' funds to various types of risk in an endeavour to generate profits. It results in the level of risk exposure assumed by the bank normally being much higher than the actual level of the bank's capital. This gearing effect may unfortunately act as an incentive for directors and management ("management") of a bank to subject depositors' funds to outrageous risks in a quest to earn extraordinary profits. Under such circumstances the chances of gain may be unreasonably small in comparison with the high probability of loss of the depositors' funds and the (possible) failure of the bank. In addition, the danger exists that the failure of a bank may cause the demise of other banks or may even result in the failure of whole financial systems. Therefore, in view of the worldwide expansion of banks, the Bank for International Settlements (together with other international bodies) is involved in developing and maintaining uniform international minimum standards of supervision on a global scale. Regulators worldwide are required to adhere to these standards if the banks in their jurisdictions are to participate in the international financial markets. In South Africa, the Banks Act, 1990 (Act No. 94 of 1990), provides for the regulation and supervision of banks, which banks (other than branches of foreign banks and mutual banks) are required to be public companies. This company structure offers persons who are equipped with special managerial abilities and skills the opportunity to manage and control the company's business. Accordingly, the worldwide phenomenon of the separation between the shareholders and management of the company (concomitant with virtually unlimited managerial freedom) extant in large public companies exacerbates the risk of the loss of deposits occasioned by negligence or misdemeanour on the part of management of banks. Moreover, market forces and principles of South Africa's statutory and common law pertaining to the duties of management fail to provide the necessary system of countermeasures to guard against the exploitation by management of the business of a bank and to reduce the risk of loss to depositors. Consequently, considerations of public interest dictate that the principles of a free-market economy be supplanted by legislation that introduces prescriptive rules with regard to the regulation and governance of the management of banks. The purpose of such legislation should be to rectify market failures and to protect the interests of depositors. It must also provide the Registrar of Banks with an adequate structure to oversee compliance with international minimum standards of regulation and governance pertaining to the management of banks. In this vein, the study undertaken in this thesis has resulted in draft pro forma legislation aimed at addressing the designated needs and standards. Should legislation of this nature be introduced and applied to the management of banks in South Africa, it would not only ensure compliance with internationally recognised regulatory and governance standards, but should also protect the interests of depositors. The proposed legislation ought to minimise the risk of the loss of deposits and should contribute towards maintaining/restoring the confidence of the general public in the financial system of South Africa. It would also enhance the process of ensuring that only fit and proper persons are appointed as managers, and continue to manage a bank and/or bank controlling company. The pro forma legislation is designed to be enacted as amendments to the current provisions of the Banks Act.
- Full Text:
Spillover effects of a sovereign credit downgrade within the South African retail banking sector
- Authors: De Wet, Milan
- Date: 2018
- Subjects: Banks and banking - South Africa , Credit ratings - South Africa , Credit analysis - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/272019 , uj:28942
- Description: M.Com. (Investment Management) , Abstract: The increasing role of credit rating agencies in emerging markets and the various impacts that these rating agencies have on emerging market economies have become of great interest in modern finance. The main aim of this study is to determine the spillover effects of a South African sovereign credit rating downgrade on the South African retail banking sector. The four objectives of this study are: to determine whether a sovereign ceiling channel exists between the South African sovereign credit rating and the corporate credit ratings of the retail banks under analysis; to determine the effects of a South African sovereign credit rating downgrade on the share price of each bank under analysis by means of determining whether a South African sovereign credit rating downgrade caused any significant abnormal returns in the share price; to establish whether a South African sovereign credit rating change caused any volatility spillovers to the shares of the banks under analysis; and, finally, to ascertain whether a South African sovereign credit rating change had a significant impact on the fundamental variables of the banks under analysis. By making use of regression methodology it is shown that a sovereign ceiling channel exists between the South African sovereign credit rating and the corporate credit ratings of South African retail banks. Furthermore, an event study analysis was conducted to provide evidence that a South African sovereign credit rating downgrade does cause abnormal returns in the shares of South African retail banks. It is also presented by means of a GARCH-BEKK model that South African sovereign credit rating changes caused volatility spillovers to the shares of South African retail banks. Finally, despite the negative share price effect of a South African sovereign credit rating downgrade, ARDL methodology provided evidence that a South African sovereign credit rating change does not always have a significant impact on key fundamental aspects of South African retail banks.
- Full Text:
- Authors: De Wet, Milan
- Date: 2018
- Subjects: Banks and banking - South Africa , Credit ratings - South Africa , Credit analysis - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/272019 , uj:28942
- Description: M.Com. (Investment Management) , Abstract: The increasing role of credit rating agencies in emerging markets and the various impacts that these rating agencies have on emerging market economies have become of great interest in modern finance. The main aim of this study is to determine the spillover effects of a South African sovereign credit rating downgrade on the South African retail banking sector. The four objectives of this study are: to determine whether a sovereign ceiling channel exists between the South African sovereign credit rating and the corporate credit ratings of the retail banks under analysis; to determine the effects of a South African sovereign credit rating downgrade on the share price of each bank under analysis by means of determining whether a South African sovereign credit rating downgrade caused any significant abnormal returns in the share price; to establish whether a South African sovereign credit rating change caused any volatility spillovers to the shares of the banks under analysis; and, finally, to ascertain whether a South African sovereign credit rating change had a significant impact on the fundamental variables of the banks under analysis. By making use of regression methodology it is shown that a sovereign ceiling channel exists between the South African sovereign credit rating and the corporate credit ratings of South African retail banks. Furthermore, an event study analysis was conducted to provide evidence that a South African sovereign credit rating downgrade does cause abnormal returns in the shares of South African retail banks. It is also presented by means of a GARCH-BEKK model that South African sovereign credit rating changes caused volatility spillovers to the shares of South African retail banks. Finally, despite the negative share price effect of a South African sovereign credit rating downgrade, ARDL methodology provided evidence that a South African sovereign credit rating change does not always have a significant impact on key fundamental aspects of South African retail banks.
- Full Text:
The proposed twin-peaks system for regulating the financial sector of South Africa in comparative perspective
- Authors: Erasmus, Amanda
- Date: 2016
- Subjects: Financial institutions - South Africa , Banks and banking - South Africa , Financial services industry - Law and legislation - South Africa , Banking law - South Africa , Financial crises - Law and legislation - South Africa , Global Financial Crisis, 2008-2009
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/87721 , uj:19615
- Description: Abstract: Please refer to full text to view abstract , LL.M. (Banking Law)
- Full Text:
- Authors: Erasmus, Amanda
- Date: 2016
- Subjects: Financial institutions - South Africa , Banks and banking - South Africa , Financial services industry - Law and legislation - South Africa , Banking law - South Africa , Financial crises - Law and legislation - South Africa , Global Financial Crisis, 2008-2009
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/87721 , uj:19615
- Description: Abstract: Please refer to full text to view abstract , LL.M. (Banking Law)
- Full Text:
Die bankgeheimnis in die Suid-Afrikaanse reg
- Faul, W.
- Authors: Faul, W.
- Date: 2015-08-17
- Subjects: Banking law - South Africa , Banks and banking - South Africa , Liability for credit information - South Africa , Confidential communications - Banking - South Africa
- Type: Thesis
- Identifier: uj:13872 , http://hdl.handle.net/10210/14204
- Description: LL.M. , Please refer to full text to view abstract
- Full Text:
- Authors: Faul, W.
- Date: 2015-08-17
- Subjects: Banking law - South Africa , Banks and banking - South Africa , Liability for credit information - South Africa , Confidential communications - Banking - South Africa
- Type: Thesis
- Identifier: uj:13872 , http://hdl.handle.net/10210/14204
- Description: LL.M. , Please refer to full text to view abstract
- Full Text:
The FirstRand Founders’ story : exploring synergistic relationships
- Authors: Fourie, Christel
- Date: 2016
- Subjects: First National Bank of Southern Africa , Performance - Management , Banks and banking - South Africa , Organizational effectiveness - Measurement
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://hdl.handle.net/10210/82418 , uj:18955
- Description: Abstract: The study explores and describes the FirstRand founders’ efforts and influence in how a business success story unfolded. The research is driven by a desire to understand what made this story. FirstRand is one of South Africa’s largest and foremost financial services groups. The group is made up of world-class companies such as Rand Merchant Bank, First National Bank and WesBank. Hallmarks of all its companies, present and past, include a track record of innovation, strong values and an ownermanager philosophy. The group’s entrepreneurial history can be traced back to 1977 and the founding partnership of GT Ferreira, Laurie Dippenaar and Paul Harris. Over several decades the founders, together with a stable management team, built the group through a series of strategic acquisitions and mergers. The research question was formulated as: What did the three founders contribute individually and collectively to FirstRand’s success? Accordingly, a qualitative mode of enquiry was adopted and a case study design applied. The data were collected through semi-structured interviews with the founders and key role players such as chief executives, supplemented with other data sources. Data were analysed using narrative analysis. The goal was to describe the research setting comprehensively so as to enable readers to see the case study as the writing of history. The researcher’s insights clustered into four main interpretation themes: firstly, the founders’ partnership and complementarity as a success factor, secondly, how leadership worked in the founders’ eyes, thirdly, the founder-leaders as architects of culture formation and fourthly, how the founders created the conditions for emergence. What these insights mean was explored in the section on sensemaking by drawing links to theory that offer plausible perspectives on the FirstRand story. The study’s findings are relevant in revealing theories-in-use from three of the most highly regarded business leaders. There is no similar example to be found. The study’s key contribution is of a theoretical nature. The researcher’s overall impressions point to the founders having contributed a significant leadership and culture perspective that was lived and time-tested over more than three decades. Herein lie the true value-add and uniquely original contribution from this study. In addition several practical and life lessons came to the fore with possible application to readers’ own situations. The... , D.Phil.
- Full Text:
- Authors: Fourie, Christel
- Date: 2016
- Subjects: First National Bank of Southern Africa , Performance - Management , Banks and banking - South Africa , Organizational effectiveness - Measurement
- Language: English
- Type: Doctoral (Thesis)
- Identifier: http://hdl.handle.net/10210/82418 , uj:18955
- Description: Abstract: The study explores and describes the FirstRand founders’ efforts and influence in how a business success story unfolded. The research is driven by a desire to understand what made this story. FirstRand is one of South Africa’s largest and foremost financial services groups. The group is made up of world-class companies such as Rand Merchant Bank, First National Bank and WesBank. Hallmarks of all its companies, present and past, include a track record of innovation, strong values and an ownermanager philosophy. The group’s entrepreneurial history can be traced back to 1977 and the founding partnership of GT Ferreira, Laurie Dippenaar and Paul Harris. Over several decades the founders, together with a stable management team, built the group through a series of strategic acquisitions and mergers. The research question was formulated as: What did the three founders contribute individually and collectively to FirstRand’s success? Accordingly, a qualitative mode of enquiry was adopted and a case study design applied. The data were collected through semi-structured interviews with the founders and key role players such as chief executives, supplemented with other data sources. Data were analysed using narrative analysis. The goal was to describe the research setting comprehensively so as to enable readers to see the case study as the writing of history. The researcher’s insights clustered into four main interpretation themes: firstly, the founders’ partnership and complementarity as a success factor, secondly, how leadership worked in the founders’ eyes, thirdly, the founder-leaders as architects of culture formation and fourthly, how the founders created the conditions for emergence. What these insights mean was explored in the section on sensemaking by drawing links to theory that offer plausible perspectives on the FirstRand story. The study’s findings are relevant in revealing theories-in-use from three of the most highly regarded business leaders. There is no similar example to be found. The study’s key contribution is of a theoretical nature. The researcher’s overall impressions point to the founders having contributed a significant leadership and culture perspective that was lived and time-tested over more than three decades. Herein lie the true value-add and uniquely original contribution from this study. In addition several practical and life lessons came to the fore with possible application to readers’ own situations. The... , D.Phil.
- Full Text:
Toepasbaarheid van 'n mededingende voordeelmodel binne die internasionale afdeling van 'n handelsbank
- Authors: Fourie, Louis
- Date: 2014-02-18
- Subjects: Competition, International , Merchant banks - South Africa , Banks and banking - South Africa
- Type: Thesis
- Identifier: uj:4116 , http://hdl.handle.net/10210/9463
- Description: M. Com , The 200 years of South African banking history has been a turbulent mix of crisis and triumph. Banks have had to respond to changes in their environment ranging from wars and the discovery of gold and diamonds, to regulatory changes, disinvestment and township bond boycotts. With the phasing out of sanctions, international opportunities started to emerge and South African banks were quick to respond. International and local competition has increased and it has become necessary for banks to put more emphasis on obtaining a competitive advantage. Optimists like to speak of South Africa as the "powerhouse of Africa" and the natural investment home for foreign investors wanting a foothold in the African market. It has therefore become necessary to do a "SWOT" analysis (Strengths and weaknesses, opportunities and threats) to be able to formulate a competitive strategy. • This dissertation comprises of an environmental analysis which includes a study of the macro-environment, international environment and the analysis of Porter's five basic forces. This environmental analysis leads to the establishing of local and international competitive strategies. South Africa has a competitive edge on other countries of its size and development levels in the sense that it has a very adaptable economy. The fact that South Africa is seen as the "gateway to Africa" should be exploited by South African banks. The changing and uncertain environment in South Africa must be seen as an opportunity for international departments of commercial banks to enrich themselves and their employees. This dissertation has shown that local banks do not have an advantage over international banks. From this follows a recommendation that local banks should develop and maintain a competitive advantage and focus on African business.
- Full Text:
- Authors: Fourie, Louis
- Date: 2014-02-18
- Subjects: Competition, International , Merchant banks - South Africa , Banks and banking - South Africa
- Type: Thesis
- Identifier: uj:4116 , http://hdl.handle.net/10210/9463
- Description: M. Com , The 200 years of South African banking history has been a turbulent mix of crisis and triumph. Banks have had to respond to changes in their environment ranging from wars and the discovery of gold and diamonds, to regulatory changes, disinvestment and township bond boycotts. With the phasing out of sanctions, international opportunities started to emerge and South African banks were quick to respond. International and local competition has increased and it has become necessary for banks to put more emphasis on obtaining a competitive advantage. Optimists like to speak of South Africa as the "powerhouse of Africa" and the natural investment home for foreign investors wanting a foothold in the African market. It has therefore become necessary to do a "SWOT" analysis (Strengths and weaknesses, opportunities and threats) to be able to formulate a competitive strategy. • This dissertation comprises of an environmental analysis which includes a study of the macro-environment, international environment and the analysis of Porter's five basic forces. This environmental analysis leads to the establishing of local and international competitive strategies. South Africa has a competitive edge on other countries of its size and development levels in the sense that it has a very adaptable economy. The fact that South Africa is seen as the "gateway to Africa" should be exploited by South African banks. The changing and uncertain environment in South Africa must be seen as an opportunity for international departments of commercial banks to enrich themselves and their employees. This dissertation has shown that local banks do not have an advantage over international banks. From this follows a recommendation that local banks should develop and maintain a competitive advantage and focus on African business.
- Full Text:
Private banking : an international and local perspective
- Hattingh, Christiaan du Toit
- Authors: Hattingh, Christiaan du Toit
- Date: 2012-08-13
- Subjects: Banks and banking, International , Banks and banking - South Africa , Private banking
- Type: Thesis
- Identifier: uj:9003 , http://hdl.handle.net/10210/5470
- Description: M.Comm. , Since the creation of private banking in the 16th century, it has evolved from a discreet service for the wealthy few to a broader base of services provided for high net worth individuals. Private banking today offers a complex, highly diverse array of personalised wealth preservation, -creation and —management services for a growing population of sophisticated and affluent individuals. Such people have multiple needs that range from banking services to investment and estate planning. The high net worth market is one of the most promising areas for banks to generate revenues and fee income. It is therefore not surprising that private banking is one of the highest growth services in the banking industry today. Private banking is not a business for everyone, however. Not all providers have the client base, the service background and product range, the market location, the management culture or the shareholder commitment to succeed. A myriad of service providers are entering the South African market, ranging from trust companies, investment banks, retail banks, stock brokers, treasury operations and foreign players. All these players brand themselves as deliverers of private banking (in the case of licensed banks) or private client (in the case of non-banks) services. A result of the diversity of institutions claiming to be private banks or at the very least deliverers of private client services, is that not only do the products available to clients differ substantially from institution to institution, but also the service delivery mechanism. True private banking is about relationships and the management of those relationships. Almost any service can be delivered but there is always a cost attached to the delivery thereof. The secret to success in the South African private banking market is the balancing of the costs and the level of service delivery to the appropriate target market. At present there are no standard entry criteria and service delivery model to guide institutions that wish to enter the private banking arena. The existing private banks are so diverse in nature that an independent study was necessary to find the common denominators that underpin a successful private bank in South Africa. Private banking in Europe, although not restricted to Switzerland and the United Kingdom, is largely concentrated in these two countries. Private bankers, particularly in Europe, have traditionally focused on "old wealth" or "passive wealth", which is concerned primarily with secrecy, capital preservation, personal service and relationship longevity. Old wealth has tended to be relatively price insensitive. There are two main European private banking styles, dubbed the Zurich and London models.
- Full Text:
- Authors: Hattingh, Christiaan du Toit
- Date: 2012-08-13
- Subjects: Banks and banking, International , Banks and banking - South Africa , Private banking
- Type: Thesis
- Identifier: uj:9003 , http://hdl.handle.net/10210/5470
- Description: M.Comm. , Since the creation of private banking in the 16th century, it has evolved from a discreet service for the wealthy few to a broader base of services provided for high net worth individuals. Private banking today offers a complex, highly diverse array of personalised wealth preservation, -creation and —management services for a growing population of sophisticated and affluent individuals. Such people have multiple needs that range from banking services to investment and estate planning. The high net worth market is one of the most promising areas for banks to generate revenues and fee income. It is therefore not surprising that private banking is one of the highest growth services in the banking industry today. Private banking is not a business for everyone, however. Not all providers have the client base, the service background and product range, the market location, the management culture or the shareholder commitment to succeed. A myriad of service providers are entering the South African market, ranging from trust companies, investment banks, retail banks, stock brokers, treasury operations and foreign players. All these players brand themselves as deliverers of private banking (in the case of licensed banks) or private client (in the case of non-banks) services. A result of the diversity of institutions claiming to be private banks or at the very least deliverers of private client services, is that not only do the products available to clients differ substantially from institution to institution, but also the service delivery mechanism. True private banking is about relationships and the management of those relationships. Almost any service can be delivered but there is always a cost attached to the delivery thereof. The secret to success in the South African private banking market is the balancing of the costs and the level of service delivery to the appropriate target market. At present there are no standard entry criteria and service delivery model to guide institutions that wish to enter the private banking arena. The existing private banks are so diverse in nature that an independent study was necessary to find the common denominators that underpin a successful private bank in South Africa. Private banking in Europe, although not restricted to Switzerland and the United Kingdom, is largely concentrated in these two countries. Private bankers, particularly in Europe, have traditionally focused on "old wealth" or "passive wealth", which is concerned primarily with secrecy, capital preservation, personal service and relationship longevity. Old wealth has tended to be relatively price insensitive. There are two main European private banking styles, dubbed the Zurich and London models.
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Sensemaking and its influence on a strategic change initiative within an African Bank’s finance function
- Authors: Isakow, Russell
- Date: 2017
- Subjects: Banks and banking - South Africa , Organizational change - South Africa , Strategic planning - South Africa , Corporate culture - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/262405 , uj:27699
- Description: M.Com. (Business Management) , Abstract: Sensemaking is a process through which individuals construct meaning in their lives. This study attempted to validate the use of sensemaking – as a method of inquiry – during the implementation phase of a relevant strategic change initiative. More specifically, the study adopted Tovstiga’s (2015) model for sensemaking from an organisational context, aimed at better understanding how key-stakeholder groups - during the implementation of a strategic change initiative - make sense of the objectives and values of the initiative. Organisational literature has largely focussed on quantitative inquiry, while a qualitative approach (such as with sensemaking as a form of inquiry) can further provide valuable insights for senior management. This study made use of non-probability, purposive sampling, whereby a large African Bank’s Financial Control division was the target population. Within this population, the sample was split between two key stakeholder groups: sensegivers and sensemakers. This provided the researcher with an opportunity to investigate whether the intent (provided by senior management i.e. the sensegivers), aligned with that of the sense made (provided by lower levels of management i.e. the sensemakers). The study used focus group interviews utilising two different interview schedules i.e. one for sensegivers and one for sensemakers. The open-ended questions aimed at better understanding the intent and meaning relating to the strategic change initiative’s objectives and values. The data was then thematically analysed to highlight potential alignments and misalignments of understanding between the two key-stakeholder groups mentioned above. A major finding of this study was that, although the objectives and values identified by lower levels of management mostly aligned with that of the intent by senior management, the sense made did not align. Sensemakers indicated that, due to an unclear vision for the strategic change initiative from senior management, there was confusion as to how to successfully implement the initiative. Additionally, several negative themes emerged from the study i.e. a fear of uncertainty and retrenchment, a feeling of being excluded from the planning of the initiative, and relevant role misunderstandings. The study concluded that sensemaking can be used as a valuable, additional method of inquiry for strategic change initiatives, highlighting important alignments and misalignments from key-stakeholder groups...
- Full Text:
- Authors: Isakow, Russell
- Date: 2017
- Subjects: Banks and banking - South Africa , Organizational change - South Africa , Strategic planning - South Africa , Corporate culture - South Africa
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/262405 , uj:27699
- Description: M.Com. (Business Management) , Abstract: Sensemaking is a process through which individuals construct meaning in their lives. This study attempted to validate the use of sensemaking – as a method of inquiry – during the implementation phase of a relevant strategic change initiative. More specifically, the study adopted Tovstiga’s (2015) model for sensemaking from an organisational context, aimed at better understanding how key-stakeholder groups - during the implementation of a strategic change initiative - make sense of the objectives and values of the initiative. Organisational literature has largely focussed on quantitative inquiry, while a qualitative approach (such as with sensemaking as a form of inquiry) can further provide valuable insights for senior management. This study made use of non-probability, purposive sampling, whereby a large African Bank’s Financial Control division was the target population. Within this population, the sample was split between two key stakeholder groups: sensegivers and sensemakers. This provided the researcher with an opportunity to investigate whether the intent (provided by senior management i.e. the sensegivers), aligned with that of the sense made (provided by lower levels of management i.e. the sensemakers). The study used focus group interviews utilising two different interview schedules i.e. one for sensegivers and one for sensemakers. The open-ended questions aimed at better understanding the intent and meaning relating to the strategic change initiative’s objectives and values. The data was then thematically analysed to highlight potential alignments and misalignments of understanding between the two key-stakeholder groups mentioned above. A major finding of this study was that, although the objectives and values identified by lower levels of management mostly aligned with that of the intent by senior management, the sense made did not align. Sensemakers indicated that, due to an unclear vision for the strategic change initiative from senior management, there was confusion as to how to successfully implement the initiative. Additionally, several negative themes emerged from the study i.e. a fear of uncertainty and retrenchment, a feeling of being excluded from the planning of the initiative, and relevant role misunderstandings. The study concluded that sensemaking can be used as a valuable, additional method of inquiry for strategic change initiatives, highlighting important alignments and misalignments from key-stakeholder groups...
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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
- Authors: Jourbert, Wessel Wilhelm
- Date: 2015-11-10
- Subjects: Management Information systems , Banks and banking - South Africa
- Type: Thesis
- Identifier: uj:14534 , http://hdl.handle.net/10210/15065
- Description: M.Com. (Business Economics) , Please refer to full text to view abstract
- Full Text:
- Authors: Jourbert, Wessel Wilhelm
- Date: 2015-11-10
- Subjects: Management Information systems , Banks and banking - South Africa
- Type: Thesis
- Identifier: uj:14534 , http://hdl.handle.net/10210/15065
- Description: M.Com. (Business Economics) , Please refer to full text to view abstract
- Full Text:
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%.
- Full Text:
- 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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Profile dynamics of the South African banking sector
- Authors: Khumalo, Mandla Vincent
- Date: 2019
- Subjects: Banks and banking - South Africa , Bank management
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/414897 , uj:35011
- Description: Abstract: A firm’s level of debt versus its level of equity has important implications for its value as well as its cost of capital. However, there are opposing views among many researchers and corporate finance experts pertaining to a firm’s optimal capital structure. Banks are responsible for providing liquidity as demanded by depositors, and to extend credit as well as liquidity to their borrowers through lines of credit. Given this central role that banks play in an economy, banks have always been concerned with both solvency and liquidity. This study explored the capital structure of the big four banks in South Africa by undertaking a descriptive analysis of the debt and equity dynamics of the big four banks during the period 2007 to 2016. The study employed secondary data which was obtained from various sources such as Bloomberg, online databases, Banks Act-returns, financial statements and reports of the big four banks in South Africa. The data collected was only restricted to Absa Bank, FirstRand Bank, Nedbank and Standard Bank. The study found that FirstRand has the best funding structure among the big four South African banks. ABSA has the second-best funding components with the highest ratio of retail funding to total funding. The study further analysed that Nedbank is by far the most reliant on institutional funding, leaving it particularly vulnerable to re-pricing in this market. Standard Bank has the lowest ratios of long-term and retail funding to total funding and is most reliant on foreign funding. , M.Com. (Finance)
- Full Text:
- Authors: Khumalo, Mandla Vincent
- Date: 2019
- Subjects: Banks and banking - South Africa , Bank management
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/414897 , uj:35011
- Description: Abstract: A firm’s level of debt versus its level of equity has important implications for its value as well as its cost of capital. However, there are opposing views among many researchers and corporate finance experts pertaining to a firm’s optimal capital structure. Banks are responsible for providing liquidity as demanded by depositors, and to extend credit as well as liquidity to their borrowers through lines of credit. Given this central role that banks play in an economy, banks have always been concerned with both solvency and liquidity. This study explored the capital structure of the big four banks in South Africa by undertaking a descriptive analysis of the debt and equity dynamics of the big four banks during the period 2007 to 2016. The study employed secondary data which was obtained from various sources such as Bloomberg, online databases, Banks Act-returns, financial statements and reports of the big four banks in South Africa. The data collected was only restricted to Absa Bank, FirstRand Bank, Nedbank and Standard Bank. The study found that FirstRand has the best funding structure among the big four South African banks. ABSA has the second-best funding components with the highest ratio of retail funding to total funding. The study further analysed that Nedbank is by far the most reliant on institutional funding, leaving it particularly vulnerable to re-pricing in this market. Standard Bank has the lowest ratios of long-term and retail funding to total funding and is most reliant on foreign funding. , M.Com. (Finance)
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Solvabiliteit van die Suid-Afrikaanse handelsbanke soos gemeet aan internasionale standaarde
- Authors: Kock, André Daniel
- Date: 2015-02-09
- Subjects: Banks and banking - South Africa , Banks and banking, International.
- Type: Thesis
- Identifier: uj:13237 , http://hdl.handle.net/10210/13261
- Description: Ph.D. (Economics) , The object of this study was to examine the solvency standards of South African commercial banks on the basis of internationally accepted criteria, in order to determine whether these institutions maintain adequate capital resources to meet their liabilities at all times. The question of capital adequacy was approached from the point of view that the solvency of banks is subject to the influence of certain structural changes that are taking place in the Western banking system. These changes can be classified into four broad categories, viz. increasing government intervention in private banking; the formation of banking groups with a view to mobilising large resources of funds; the diversification of banking services; and a greater international alignment of Western banks. In the ever-changing banking environment, and given the risks to which banks are continually exposed, banks aim to maintain adequate solvency standards at all times without sacrificing too much liquidity and/or return on shareholders' funds. Because of the commercial banks' unique position as holders of the public's financial assets, as well as their ability to create money, they are subject to monetary control and strict prudential supervision. When a bank finds itself in the position that, after taking its own capital resources into account, it is unable to meet its liabilities because of these liabilities exceeding its assets, insolvency is almost unavoidable. To continue in business, the bank's capital should therefore be adequate not only to finance its infrastructure but also to absorb unforeseen losses.
- Full Text:
- Authors: Kock, André Daniel
- Date: 2015-02-09
- Subjects: Banks and banking - South Africa , Banks and banking, International.
- Type: Thesis
- Identifier: uj:13237 , http://hdl.handle.net/10210/13261
- Description: Ph.D. (Economics) , The object of this study was to examine the solvency standards of South African commercial banks on the basis of internationally accepted criteria, in order to determine whether these institutions maintain adequate capital resources to meet their liabilities at all times. The question of capital adequacy was approached from the point of view that the solvency of banks is subject to the influence of certain structural changes that are taking place in the Western banking system. These changes can be classified into four broad categories, viz. increasing government intervention in private banking; the formation of banking groups with a view to mobilising large resources of funds; the diversification of banking services; and a greater international alignment of Western banks. In the ever-changing banking environment, and given the risks to which banks are continually exposed, banks aim to maintain adequate solvency standards at all times without sacrificing too much liquidity and/or return on shareholders' funds. Because of the commercial banks' unique position as holders of the public's financial assets, as well as their ability to create money, they are subject to monetary control and strict prudential supervision. When a bank finds itself in the position that, after taking its own capital resources into account, it is unable to meet its liabilities because of these liabilities exceeding its assets, insolvency is almost unavoidable. To continue in business, the bank's capital should therefore be adequate not only to finance its infrastructure but also to absorb unforeseen losses.
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Dispute resolution in the banking industry : a comparative analysis of the legal framework in South Africa and Lesotho
- Kolobe, Refiloe Marethabile Sylvia
- 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.
- Full Text:
- 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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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)
- Full Text:
- 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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The impact of the National. Credit Act (NCA) on risk in the South African banking system
- Authors: Landie, Denzel
- Date: 2014-06-10
- Subjects: Financial risk management - South Africa , Banks and banking - Risk management - South Africa , Banks and banking - South Africa , South Africa. National Credit Act, 2005
- Type: Thesis
- Identifier: uj:11479 , http://hdl.handle.net/10210/11175
- Description: M.Phil. (Economics) , There has been increasing focus on banking system stability worldwide, particularly due to the recent financial crisis experienced and the resultant adverse economic effects. In the case of a developing country like South Africa (SA), the stability of the banking system is even more important as it is crucial for the achievement of the country’s development goals. Credit extension is also a core component for facilitating economic and social development in the country. The downside risk attached to credit extension is that once it reaches a point of being excessive it can have a destabilising effect on the banking system and the economy. SA has experienced a rapid increase in credit extension since 2001, which prompted the implementation of the National Credit Act (NCA), with the intention of regulating the credit industry and improving the practices therein. More recently, further concerns have been raised by regulatory authorities around the possibility of an asset bubble in the SA economy as a result of the level of unsecured credit extended in the country. The objective of this study therefore is to investigate the impact of the NCA on risk, both credit and systemic, in the banking system. This is important, as investigating and understanding the impact of credit controls, like the NCA, on risk in the banking system is critical to supporting the SA development agenda. The findings of this study show that the NCA has been successful in reducing credit risk in the banking system, even though this was by default and not through the stated intention of the Act. This was achieved through the introduction of the affordability requirement into the credit assessment process. This study highlights however, that there are still areas of improvement which can be made to the NCA to increase its effectiveness in preventing excessive credit extension.
- Full Text:
- Authors: Landie, Denzel
- Date: 2014-06-10
- Subjects: Financial risk management - South Africa , Banks and banking - Risk management - South Africa , Banks and banking - South Africa , South Africa. National Credit Act, 2005
- Type: Thesis
- Identifier: uj:11479 , http://hdl.handle.net/10210/11175
- Description: M.Phil. (Economics) , There has been increasing focus on banking system stability worldwide, particularly due to the recent financial crisis experienced and the resultant adverse economic effects. In the case of a developing country like South Africa (SA), the stability of the banking system is even more important as it is crucial for the achievement of the country’s development goals. Credit extension is also a core component for facilitating economic and social development in the country. The downside risk attached to credit extension is that once it reaches a point of being excessive it can have a destabilising effect on the banking system and the economy. SA has experienced a rapid increase in credit extension since 2001, which prompted the implementation of the National Credit Act (NCA), with the intention of regulating the credit industry and improving the practices therein. More recently, further concerns have been raised by regulatory authorities around the possibility of an asset bubble in the SA economy as a result of the level of unsecured credit extended in the country. The objective of this study therefore is to investigate the impact of the NCA on risk, both credit and systemic, in the banking system. This is important, as investigating and understanding the impact of credit controls, like the NCA, on risk in the banking system is critical to supporting the SA development agenda. The findings of this study show that the NCA has been successful in reducing credit risk in the banking system, even though this was by default and not through the stated intention of the Act. This was achieved through the introduction of the affordability requirement into the credit assessment process. This study highlights however, that there are still areas of improvement which can be made to the NCA to increase its effectiveness in preventing excessive credit extension.
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The impact of enterprise development value proposition on small and micro enterprise growth
- Authors: Makhubele, Teleni Abigail
- Date: 2015-09-01
- Subjects: Small business - South Africa - Finance , Banks and banking - South Africa
- Type: Thesis
- Identifier: uj:14013 , http://hdl.handle.net/10210/14385
- Description: M.Com. , Small, medium and micro enterprise (SMME) prioritization is a collaborative effort by both the government and the private sector. The SA government called for support through the 1995 White Paper on National Strategy for the Development and Promotion of Small Business. The recent establishment (May 2014) of the Ministry of Small Business Development reinforces the strategic role of SMMEs in the South African economy. The prominent role played by SMMEs cannot be overemphasized...
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- Authors: Makhubele, Teleni Abigail
- Date: 2015-09-01
- Subjects: Small business - South Africa - Finance , Banks and banking - South Africa
- Type: Thesis
- Identifier: uj:14013 , http://hdl.handle.net/10210/14385
- Description: M.Com. , Small, medium and micro enterprise (SMME) prioritization is a collaborative effort by both the government and the private sector. The SA government called for support through the 1995 White Paper on National Strategy for the Development and Promotion of Small Business. The recent establishment (May 2014) of the Ministry of Small Business Development reinforces the strategic role of SMMEs in the South African economy. The prominent role played by SMMEs cannot be overemphasized...
- Full Text:
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.
- Full Text:
- 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.
- Full Text: