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1
Newbury, Colin. "Technology, Capital, and Consolidation: The Performance of De Beers Mining Company Limited, 1880–1889." Business History Review 61, no. 1 (1987): 1–42. http://dx.doi.org/10.2307/3115773.
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In this article, Dr. Newbury focuses on the technical and financial reasons for amalgamation at the Kimberley mines in South Africa, drawing on primary records to account for the rise of De Beers as the world's major diamond mining company in the 1880s. He finds that prior experience in local government and on the mining boards prepared company directors for competition in joint stock enterprise, while differences in production policies and performance influenced the pattern of mergers within and among the four Kimberley mines. De Beers's close relationship with diamond merchants and private banks in London, particularly N. M. Rothschild & Sons, was central to its position as a prime mover toward consolidation. Dr. Newbury views De Beers as a firm that relied for its success less on its renowned chairman, Cecil J. Rhodes, than on a combined managerial expertise that reflected the interests of both mining producers and merchant buyers.
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Kilian, Eduard, and Rudie Nel. "Merchant cash advances: investigating the taxation consequences in South Africa." Journal of Economic and Financial Sciences 8, no. 2 (2015): 415–31. http://dx.doi.org/10.4102/jef.v8i2.101.
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The merchant cash advance is an emerging lending product designed to address the need to maintain cash flows and is essentially the business equivalent of a “payday” loan. A lump-sum advance is made by the merchant cash advance service provider to a business (the merchant) in exchange for an agreed upon percentage of future credit and/or debit card receivables. This article investigates the taxation consequences of merchant cash advance transactions in South Africa, in an attempt to provide guidance which is currently lacking. Although it is posited that a merchant cash advance is a form of debt factoring, the income tax treatment of the initial advance and the resulting discount reflect that of a loan. Through the investigation it was determined that merchants will be able to deduct the discount and processing fees from income. The merchant cash advance service provider will include such discount and processing fee in ‘gross income’. The initial advance and any resulting discount are held to be a ‘financial service’ and therefore an exempt supply for VAT purposes, with the processing fee constituting a taxable supply.
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Fredericks, E., E. Hoosien, and A. Brink. "The case for stool banks in South Africa." South African Medical Journal 109, no. 8 (2019): 546. http://dx.doi.org/10.7196/samj.2019.v109i8.14169.
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Jones, Stuart. "The imperial banks in South Africa 1861–1914." South African Journal of Economic History 11, no. 2 (1996): 21–54. http://dx.doi.org/10.1080/10113439609511084.
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Fotso, Bakam, and E. I. Edoun. "Critical Assessment of Banking Institutions in South Africa." Journal of Economics and Behavioral Studies 9, no. 2(J) (2017): 6–21. http://dx.doi.org/10.22610/jebs.v9i2(j).1646.
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Banks play an important role in a country’s economy through investments, deposits and withdrawals. Many banking products are sold to clients to meet their financial needs and obligations. Their performances are therefore very critical in supporting socio economic development. Financial institutions still facing challenges linked to the lack of financial previsions through the use of financial tool that allows preventing financial distress. Banks are not always well-managed because managers lack capacity and the sound knowledge in dealing effectively with the analysis of risk and return and decision-making. The current study highlights and gives orientations on key performance indicators that bank can use to manage their financial conditions in advance in a sustainable manner. The major objective of this research is to critically assess the South African banks performance using Financial Ratio Analysis (FRA)and descriptive statistics through comparative financial statement analysis form 2010 to 2013 between“ the big four†South African banks. In using correlational analysis, the study aim to establish the link between exogenous and endogenous variables of bank performance. The results showed that FirstRand bank was the best achiever with a higher level of performance following by Standard bank, then Absa and Nedbank. Furthermore, it appears that there is a strong relationship between bank performance and bank size because the volume of assets represents the bigger source of bank incomes. This study opens door to further study including both large and small banks and a comparative analysis between two research methods. The paper is divided into five major sections.
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Fotso, Bakam, and E. I. Edoun. "Critical Assessment of Banking Institutions in South Africa." Journal of Economics and Behavioral Studies 9, no. 2 (2017): 6. http://dx.doi.org/10.22610/jebs.v9i2.1646.
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Banks play an important role in a country’s economy through investments, deposits and withdrawals. Many banking products are sold to clients to meet their financial needs and obligations. Their performances are therefore very critical in supporting socio economic development. Financial institutions still facing challenges linked to the lack of financial previsions through the use of financial tool that allows preventing financial distress. Banks are not always well-managed because managers lack capacity and the sound knowledge in dealing effectively with the analysis of risk and return and decision-making. The current study highlights and gives orientations on key performance indicators that bank can use to manage their financial conditions in advance in a sustainable manner. The major objective of this research is to critically assess the South African banks performance using Financial Ratio Analysis (FRA)and descriptive statistics through comparative financial statement analysis form 2010 to 2013 between“ the big four” South African banks. In using correlational analysis, the study aim to establish the link between exogenous and endogenous variables of bank performance. The results showed that FirstRand bank was the best achiever with a higher level of performance following by Standard bank, then Absa and Nedbank. Furthermore, it appears that there is a strong relationship between bank performance and bank size because the volume of assets represents the bigger source of bank incomes. This study opens door to further study including both large and small banks and a comparative analysis between two research methods. The paper is divided into five major sections.
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Crafford, Wessel Lourens, Frederik J. Mostert, and Jan Hendrik Mostert. "Liquidity management by South African banks." Corporate Ownership and Control 9, no. 3 (2012): 52–58. http://dx.doi.org/10.22495/cocv9i3art4.
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The management of liquidity is of prime importance to banks. This management process should be carefully planned and continuously managed to master a global and/or national financial crisis. The objective of this research paper embodies the improvement of financial decision-making by banks regarding the management of their liquidity. To achieve this objective, a literature study was initially done. An empirical survey followed thereafter, focusing on the 10 biggest banks in South Africa. They are the leaders of the South African banking industry, and as South Africa is a developing country with an emerging market economy, the conclusions of the study may also be valuable to banking industries of similar countries. The importance of the liquidity management factors, the problem areas surrounding this topic, as well as how often the requirements are adjusted to ensure proper and effective liquidity management are addressed.
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Mishi, Syden, and Sibanisezwe Alwyn Khumalo. "Bank stability in South Africa: what matters?" Banks and Bank Systems 14, no. 1 (2019): 122–36. http://dx.doi.org/10.21511/bbs.14(1).2019.11.
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The study examined the determinants of bank stability within the South African banking sector. By controlling for individual bank characteristics and market characteristics, the study determined possible determinants of solvency, a proxy for bank stability, measured by z-score within the South African financial sector. The South African financial sector is highly concentrated but with a significantly large number of banks, the greater portion being foreign owned banks. The business models of some of the financial intermediaries differ from the big four and therefore the influence of the type of business model is of great interest in this study, as it highlights a unique feature of the South African financial sector. The study’s investigation used panel data estimation techniques and found that among the specific bank characteristics, lending activity and capitalization do significantly affect solvency of banks and at sector level concentration was significant. The crisis dummy also revealed that the presence of a financial crisis heightened insolvency. The results have implications for financial institutions and therefore are of interest to regulators, bank management and researchers. Policy prescription in the form of Prompt Corrective Action framework is made to ensure proactive reaction to trends likely to cause instability.
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Kholvadia, Faatima. "Islamic banking in South Africa – form over substance?" Meditari Accountancy Research 25, no. 1 (2017): 65–81. http://dx.doi.org/10.1108/medar-02-2016-0030.
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Purpose The purpose of this study is to understand the economic substance of Islamic banking transactions in South Africa and to analyse whether the economic substance is closely related to the legal form. Additionally, this study highlights the similarities and differences in the execution of Islamic banking transactions across different South African banks. The transactions analysed are deposit products of qard and Mudarabah and financing products of Murabaha, Ijarah and diminishing Musharaka. Design/methodology/approach The study was conducted through interviews with representatives from each of the four South African banks that offers Islamic banking products. Interviews were semi-structured and allowed interviewees to voice their perspectives, increasing the validity of the interviews. Findings The study found that specific Shariah requirements of Islamic banking transactions are considered and included in the legal structure of the contracts by all four banks offering Islamic banking products. However, the economic reality of these transactions was often significantly different from its legal form and was found to, economically, replicate conventional banking transactions. The study also found that all four banks offer Islamic banking products under the same Shariah principles, but in some instances (e.g. diminishing Musharaka), execute these transactions in different ways. This study is the first of its kind in South Africa. Research limitations/implications While safeguards have been used to ensure the reliability and validity of the research, there remain a few inherent limitations which should be noted: interviewees, while chosen for their expertise and level of knowledge, may provide highly technical insight which may be difficult to interpret. Detailed technicalities were therefore excluded from this research. The regulatory environment of banks in South Africa, for example, regulation imposed by the Financial Service Board on all financial institutions in South Africa, has not been explored. However, the regulatory environment was brought to the readers’ attention to help illustrate certain themes. This research uses only Shariah requirements as detailed in Section 2.2 to analyse transactions. Fatwas (rulings) issued by the Shariah Boards of South African Islamic banks have not been included in this study and may be an area of future research. Originality/value This study is the first of its kind in South Africa. The study adds to the Islamic banking literature by analysing the real execution of Islamic banking transactions rather than the theoretical compliance with Shariah law.
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Jones, F. Stuart. "Business Imperialism and the Imperial Banks in South Africa." South African Journal of Economics 66, no. 1 (1998): 30–42. http://dx.doi.org/10.1111/j.1813-6982.1998.tb01063.x.
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Jacobs, Johann. "The regulatory treatment of liquidity risk in South Africa." South African Journal of Economic and Management Sciences 15, no. 3 (2012): 294–308. http://dx.doi.org/10.4102/sajems.v15i3.209.
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The Basel accord describes the regulatory capital requirements for credit, market and operational risk. The accord aims to provide guidelines to level the playing field for all internationally active banks and to protect consumers against these risks. Despite the growing significance to bank solvency of liquidity risk, it is omitted from the new accord2. Banks are not required to measure and manage this risk yet they are often considerably exposed to the threat of severely diminished liquidity. This omission from the accord could have dire consequences for banks and the economy in which they operate: liquidity crises can occur without warning and spread quickly to other parts of the financial system. This article critically explores current practices in South Africa and proposes guidelines for effective liquidity risk regulation.
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Mashamba, Tafirei, and Farai Kwenda. "A Look at the Liquidity Management Practices of Banks in South Africa." Journal of Economics and Behavioral Studies 9, no. 3(J) (2017): 113–20. http://dx.doi.org/10.22610/jebs.v9i3(j).1750.
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In an effort to strengthen bank liquidity-risk management practices, the Basel Committee proposed new liquidity requirements for banks in 2010 under the Basel III framework. However, despite the good intentions of the liquidity requirements the new regulations are likely to present some challenges for banks in the course of managing their liquidity. However, before any inference can be made about the possible implications of the liquidity standards on bank liquidity management practices, it is imperative to have insight into the current liquidity management strategies of banks. This paper seeks to determine the current liquidity management practices of banks in South Africa by examining whether South African banks have target liquidity levels which they pursue and also by determining the variables that drive bank liquidity ratios. The study sample comprised six commercial banks operating in South Africa over the period 1993 to 2009. For analysis, a partial adjustment model was developed and estimated using the generalized method of moments (GMM) estimator. The rate at which South African banks adjust their balance sheets was estimated at 8%. This adjustment speed implies that South African banks adjust their balance sheets slowly – probably due to high adjustment costs. Thus, South African listed banks have passively managed their liquidity and partially adjust their liquidity levels in an attempt to reach the optimal level. Furthermore, the following variables were considered to be the main drivers of liquidity ratios in South Africa: bank size, capital adequacy, loan loss reserves, and financial crisis.
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Mashamba, Tafirei, and Farai Kwenda. "A Look at the Liquidity Management Practices of Banks in South Africa." Journal of Economics and Behavioral Studies 9, no. 3 (2017): 113. http://dx.doi.org/10.22610/jebs.v9i3.1750.
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In an effort to strengthen bank liquidity-risk management practices, the Basel Committee proposed new liquidity requirements for banks in 2010 under the Basel III framework. However, despite the good intentions of the liquidity requirements the new regulations are likely to present some challenges for banks in the course of managing their liquidity. However, before any inference can be made about the possible implications of the liquidity standards on bank liquidity management practices, it is imperative to have insight into the current liquidity management strategies of banks. This paper seeks to determine the current liquidity management practices of banks in South Africa by examining whether South African banks have target liquidity levels which they pursue and also by determining the variables that drive bank liquidity ratios. The study sample comprised six commercial banks operating in South Africa over the period 1993 to 2009. For analysis, a partial adjustment model was developed and estimated using the generalized method of moments (GMM) estimator. The rate at which South African banks adjust their balance sheets was estimated at 8%. This adjustment speed implies that South African banks adjust their balance sheets slowly – probably due to high adjustment costs. Thus, South African listed banks have passively managed their liquidity and partially adjust their liquidity levels in an attempt to reach the optimal level. Furthermore, the following variables were considered to be the main drivers of liquidity ratios in South Africa: bank size, capital adequacy, loan loss reserves, and financial crisis.
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Nel, Jacques, and Christo Boshoff. "Traditional-bank customers' digital-only bank resistance: evidence from South Africa." International Journal of Bank Marketing 39, no. 3 (2021): 429–54. http://dx.doi.org/10.1108/ijbm-07-2020-0380.
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PurposeDigital-only banks are emerging as challenger banks to the traditional-bank business model in South Africa. However, traditional-bank customers could resist the use of digital-only banks, theoretically due to their satisfaction with the status quo. Consequently, inertia arising from bias to traditional banks based on status quo satisfaction could engender their resistance to become customers of digital-only banks. The objective of the study, therefore, is to investigate how traditional-bank customers' inertia influences digital-only bank resistance.Design/methodology/approachBased on a literature review, digital-only bank adoption barriers and cognitive-based initial distrusting beliefs were identified as mediators of the influence of inertia on digital-only bank resistance. To test the mediation model empirically, data was collected from 610 traditional-bank-only customers.FindingsThe five adoption barriers fully mediate the influence of inertia on cognitive-based initial distrusting beliefs. The five barriers in serial with cognitive-based initial distrusting beliefs partially mediate the influence of traditional-bank customers' inertia on digital-only bank resistance. Cognitive-based initial distrusting belief is an essential factor in the mechanism underlying the influence of traditional-bank customers' inertia on digital-only bank resistance.Originality/valueDigital-only banks are relatively new. Research is therefore lacking in consumer behavior explaining the use of digital-only banks by traditional-bank customers in the South African context. A further novelty of the study is the empirical assessment of mechanisms that explain the influence of inertia on cognitive-based initial distrusting beliefs, and the influence of inertia on resistance behavior.
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Marozva, Godfrey. "Asset liquidity and bank profitability in South Africa." Corporate Ownership and Control 11, no. 1 (2013): 745–53. http://dx.doi.org/10.22495/cocv11i1c8art5.
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This paper empirically analyses the relationship between asset liquidity and bank profitability for South African banks for the period between 1994 and 2011. The study employs Ordinary Least Squares (OLS) and the Autoregressive Distributed Lag (ARDL)-bound testing approach to examine the linkage between return on assets (ROA) and liquidity, and the nexus between return on equity (ROE) and liquidity to capture the short-run and long-run dynamics. The study observes that there is neither a significant relationship between ROE and liquidity nor a relationship between ROE and liquidity. These observations hold for both the short-run and long-run. Banks are recommended to embrace the asset liability framework in their analysis and management of liquidity as the asset only approach is insufficient and misleading
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Ozili, Peterson K., and Erick Rading Outa. "Bank income smoothing in South Africa: role of ownership, IFRS and economic fluctuation." International Journal of Emerging Markets 13, no. 5 (2018): 1372–94. http://dx.doi.org/10.1108/ijoem-09-2017-0342.
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Purpose The purpose of this paper is to examine the determinants of the use of loan loss provisions (LLPs) to smooth income by banks in South Africa. More specifically, the authors examine the influence of ownership, IFRS disclosure rules and economic fluctuation on the income smoothing behaviour of South African banks while controlling for the traditional determinants of bank income smoothing via LLPs. Design/methodology/approach The study employs fixed effect regression methodology to estimate the determinants of discretionary LLPs. Findings The authors find that South African banks do not use LLPs to smooth income when they are: under-capitalised, have large non-performing loans and have a moderate ownership concentration. On the other hand, income smoothing is pronounced when South African banks are rather more profitable during economic boom periods, well-capitalised during boom periods and is pronounced among banks that adopt IFRS and among banks with a Big 4 auditor. The authors also find that banks use LLPs for capital management purposes, and bank provisioning is procyclical with economic fluctuations. Practical implications Bank supervisors in South Africa should monitor the bank provisioning practices in South Africa closely to ensure that LLPs are not used as a substitute for bank capital. Banks in South Africa should not use sufficient provisioning as a substitute for sufficient bank capital. Second, the evidence for procyclical bank provisioning shows that provisioning by South African banks reinforce the current state of the economy and might compel bank supervisors in South Africa to consider the adoption of a dynamic provisioning system that is already adopted by bank supervisors in Spain, Peru, Uruguay, Colombia and Bolivia. Originality/value Bank income smoothing is an important issue because it has implications for banking stability and accounting transparency. There are few studies on bank income smoothing for emerging economies particularly in Africa where there are substantial differences in ownership and accounting rules. This is the first South African study to examine the influence of disclosure rules, ownership and economic cycle fluctuations on bank income smoothing behaviour via LLPs.
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Coetzee, Johan. "Personal or remote interaction? Banking the unbanked in South Africa." South African Journal of Economic and Management Sciences 12, no. 4 (2011): 448–61. http://dx.doi.org/10.4102/sajems.v12i4.188.
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The Financial Sector Charter (FSC) requires South African retail banks to provide retail products and services to the rural-based unbanked. The challenge is deciding whether or not banking the unbanked must be pursued through personal or remote channels. This study considers the challenge facing the four largest South African retail banks. It investigated trends in servicing this market since the effective date of the Charter. It found that banks are currently using an integrated approach combining personal and remote interaction and emphasising the promotion of financial literacy. It remains to be seen whether this approach truly adds value for the unbanked. It is recommended that further research be done to establish exactly what the behavioural characteristics of the unbanked are over a period of continuous use of bank products and services.
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Saini, Yvonne, Geoff Bick, and Loonat Abdulla. "Consumer awareness and usage of islamic banking products in South Africa." South African Journal of Economic and Management Sciences 14, no. 3 (2011): 298–313. http://dx.doi.org/10.4102/sajems.v14i3.193.
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This paper investigates the level of consumer awareness and use of Islamic banking products in South Africa. A non-probability sampling method was used whereby a questionnaire was administered to 250 respondents and statistically analysed to determine the factors that are important in the choice between Islamic or conventional banks. It was found that Muslims are aware of Islamic banks, but their rate of use is low, as Muslim customers regard efficiency, lower bank charges, the availability of automatic teller machines and an extensive branch network as important factors when it comes to choosing a bank, rather than religious motivations for compliance with Islamic conventions. It was concluded that, if Islamic banks wanted to attract and retain customers and remain relevant in the South African context, they would have to develop relevant strategies designed to meet customers’ needs. Religion as the sole motivation for choosing Islamic banks is inadequate.
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Jones, Gareth A., and Anthea Dallimore. "Wither Participatory Banking? Experiences with Village Banks in South Africa." European Journal of Development Research 21, no. 3 (2009): 344–61. http://dx.doi.org/10.1057/ejdr.2009.16.
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Jones, Stephanie. "Merchant-kings and Everymen: Narratives of the South Asian Diaspora of East Africa." Journal of Eastern African Studies 1, no. 1 (2007): 16–33. http://dx.doi.org/10.1080/17531050701218809.
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Mutezo, Ashley Teedzwi. "Credit rationing and risk management for SMEs: The way forward for South Africa." Corporate Ownership and Control 10, no. 2 (2013): 153–63. http://dx.doi.org/10.22495/cocv10i2c1art1.
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Small and medium enterprises are increasingly seen as playing an important role in the economies of many countries. Studies identify adequate and accessible financing as a critical component of SME development. Many SMES are unable to access loans from the commercial banks due to lack of financial knowledge, collateral and credit history. The drive to minimise risks informs the decision of banks to minimise loan approval for SMEs. The question that now arises is how to strike a balance between financial intermediation towards achieving economic development, while reducing operational and credit risks that confront financial intermediation at large, especially banks. The aim of this paper is to investigate the factors affecting the SME lending-decision process of commercial banks and uncover the possible way forward for South Africa
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de Wet, J. H. v. H. "Capital structure and regulation implications for South African banks." Corporate Ownership and Control 11, no. 4 (2013): 765–76. http://dx.doi.org/10.22495/cocv11i1c9art1.
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Past research on capital structure was spearheaded by the ground-breaking models of Nobel Prize laureates Modigliani and Miller. However, little research has been done on the application of their and other theories to banking institutions located in Southern Africa. This study analyses the determinants of the capital structure of banks in South Africa based on secondary financial data and by performing this analysis attempts to establish trends in capital structure policy and regulatory compliance. The study also identifies best practices that contribute to the overall value and performance of the banking institution. Conclusions drawn from the results and literature create greater understanding of the dynamics of capital structure and its implications for South African Banks.
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Sufian, Fadzlan, and Fakarudin Kamarudin. "The impact of globalization on the performance of Banks in South Africa." Review of International Business and Strategy 26, no. 4 (2016): 517–42. http://dx.doi.org/10.1108/ribs-02-2016-0003.
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Purpose This paper aims to provide empirical evidence for the impact globalization has had on the performance of the banking sector in South Africa. In addition, this study also investigates bank-specific characteristics and macroeconomic conditions that may influence the performance of the banking sector. Design/methodology/approach The authors use data collected for all commercial banks in South Africa between 1998 and 2012. The ratio of return on assets was used to measure bank performance. They then used the dynamic panel regression with the generalized method of moments as an estimation method to investigate the potential determinants and the impact of globalization on bank performance. Findings Positive impact of greater economic integration and trade movements of the host country, while greater social globalization in the host country tends to exert negative influence on bank profitability. The results show that banks originating from the relatively more economically globalized countries tend to perform better, while banks headquartered in countries with greater social and political globalizations tend to exhibit lower profitability levels. Originality/value An empirical model was developed that allows for the performance of multinational banks to depend on internal and external factors. Moreover, unlike the previous studies on bank performance, in this empirical analysis, we control for the different dimensions of globalizations while taking into account the origins of the multinational banks. The procedure allows us to test for the home field, the liability of foreignness and global advantage hypotheses to deduce further insights into the prospects of banking across borders.
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Dzomira, Shewangu. "Internet banking fraud alertness in the banking sector: South Africa." Banks and Bank Systems 12, no. 1 (2017): 143–51. http://dx.doi.org/10.21511/bbs.12(1-1).2017.07.
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This paper analyzes internet banking fraud alertness to the general public by the South African banking institutions. The study is centered on routine activity theory, which is a criminology theory. A qualitative content analysis was used as the research technique for the interpretation of the text data from each bank’s website through the systematic classification process of coding and identifying themes or patterns to provide an in-depth understanding of internet banking fraud alertness in the banking sector. A sample size of 13 out of 16 locally and foreign controlled retail banks in South Africa was used. The findings report that banks are not adequately providing internet fraud alertness information to the general public on their websites notwithstanding that most banks they do provide such information to log-in users and the use of that information is doubtful. This study suggests a need to augment internet banking fraud alertness information and passably inform internet banking users of the types of internet banking fraud perpetrated by internet fraudsters before they log-in for transacting. Considering the current and widespread quandary of internet banking fraud, the information of this paper is important for internet banking users to improve their aptitude in identifying fraudulent schemes and circumvent them, and for the banking institutions to invest more in the provision of internet banking fraud information to the general public.
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Tickner, Adriaan Albert, Frederik J. Mostert, and Jan Hendrik Mostert. "The valuation of external projects by South African banks." Corporate Ownership and Control 10, no. 4 (2013): 461–68. http://dx.doi.org/10.22495/cocv10i4c5art3.
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While banks are in competition to expand their market share, their credit portfolios may become less diversified without adequate reward for the increased risks. Even well-capitalised banks may come under financial pressure when global economic conditions turn. This research paper focuses on the valuation by banks of the clients’ projects to determine whether and to which extent the banks are going to provide financing for their clients’ projects. The objective of this research evolves around the improvement of financial decision-making by banks when they are valuating the projects of their clients. The objective of this research is achieved by means of a literature study as well as an empirical survey which focuses on the top banks in South Africa. The determining factors which are considered by banks when the projects of clients are valuated, the problem areas experienced by the banks during the valuation process and the adjustments requested by banks are amongst the aspects that are addressed.
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Van der Westhuizen, Gerhardus. "Bank Productivity And Sources Of Efficiency Change: A Case Of The Four Largest Banks In South Africa." International Business & Economics Research Journal (IBER) 12, no. 2 (2013): 127. http://dx.doi.org/10.19030/iber.v12i2.7625.
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The Malmquist productivity index was utilised to estimate the total factor productivity and productivity change of the four largest banks in South Africa for the period 1994 to 2010. Total factor productivity change can be decomposed into efficiency change and technological change, which allow for determining the sources of total factor productivity change. Various changes in the South African banking scene impacted on the average productivity of the banks. The four banks experienced, on average, regress in total factor productivity as well as regress in technological change, the latter indicating a lack of innovation. The four banks operated, on average, in the proximity of fully technical efficiency. For various reasons, South Africa still has a large unbanked community.
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Chigada, Joel, and Patrick Ngulube. "A comparative analysis of knowledge retention strategies at selected banks in South Africa." Business Information Review 33, no. 4 (2016): 221–27. http://dx.doi.org/10.1177/0266382116683892.
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The purpose of this study was to analyse knowledge retention strategies at selected banks in South Africa. A comparative analysis of knowledge retention strategies at two leading South African banks underpinned the focus of this study. The importance of retaining organizational knowledge assets is highlighted in this study. A survey research design was used to collect quantitative data from middle-level managers at selected banks. All usable quantitative data were collected from middle-level managers through the use of Survey Monkey and Zoomerang – an online survey platform. The quantitative data were analysed through the use of Microsoft Excel 2010. One of the shortcomings of using the quantitative research methodology was failure to ask probing questions where questionnaires were used. The study established that selected banks did not have formal knowledge retention strategies. From the findings, there was no specific knowledge management (KM) policy guideline to inform selected banks on how to retain organizational knowledge; however, there is was an acknowledgement of the presence of communities of practice, mentoring and apprenticeship, subject matter experts, leveraging retirees, knowledge portals and storytelling. In this study, originality was premised on setting down a major piece of new information utilizing the General Knowledge Model premised on four KM practices, namely, CREATION, SHARING, TRANSFER and RETENTION. These four KM practices should be recognized as fundamental pillars of KM.
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Ngwenya, Sam. "Corporate governance and performance of listed commercial banks in South Africa." Corporate Ownership and Control 11, no. 2 (2014): 677–87. http://dx.doi.org/10.22495/cocv11i2c7p1.
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The global financial crisis of 2008 that resulted in the collapse of many financial institutions in the United States (US) and Europe have resulted in debates over the failures of corporate governance structures to properly protect investors. The main objective of the study was to determine the relationship between corporate governance and performance of listed commercial banks in South Africa. The results of the study indicated a statistically positive significant relationship between board size, proportion of non-independent and non-executive directors and bank performance. The results of the rest of the corporate governance indicators are mixed when using different performance measurement variables.
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Pelletier, Adeline. "Internal capital market practices of multinational banks evidence from south africa." Journal of Banking & Finance 90 (May 2018): 131–45. http://dx.doi.org/10.1016/j.jbankfin.2018.03.008.
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Oyetade, Damilola, Adefemi A. Obalade, and Paul-Francois Muzindutsi. "Impact of the Basel IV framework on securitization and performance of commercial banks in South Africa." Banks and Bank Systems 15, no. 3 (2020): 95–105. http://dx.doi.org/10.21511/bbs.15(3).2020.09.
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Securitization has been used as a tool for bank funding, liquidity, risk management, and performance for over two decades. However, securitization activities were negatively affected by the recent financial crises, which led to stricter regulations of banks’ off-balance-sheet activities. This study examined the possible impacts of the Basel IV capital requirements on securitization activities and the performance of commercial banks in South Africa if implemented. The study used aggregated financial data of selected South African commercial banks to create a sample representative projection as if the selected banks had implemented the Basel IV capital requirements between 2002 and 2018. The simulated data were analyzed and compared to Basel III data using panel data analysis under certain assumptions, while other conditions held constant. The results revealed that the implementation of the Basel IV capital requirements will have a significant positive impact on securitization activities of commercial banks in South Africa. However, higher capital requirements of Basel IV may have no significant impact on performance of securitizing banks but it can protect banks from securitization exposure.
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Moyo, Z., and C. Firer. "Securitisation in South Africa: 2000-2007." South African Journal of Business Management 39, no. 1 (2008): 27–34. http://dx.doi.org/10.4102/sajbm.v39i1.553.
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This paper tracks the development of the securitisation market in South Africa since the first securitisation in 1989. It gives a chronological account of securitisation issuance activity on the Bond Exchange of South Africa and identifies factors that have led to the development of the market. It also records some of the topical issues market participants face.Listing data from the Bond Exchange of South Africa was sorted and analysed. The views of market participants were captured through interviews and by attendance of the 2007 annual securitisation conference.The results show that the South African securitisation market has grown exponentially over the last seven years. Market participants expect this market to continue to grow, but at a slower pace, given the pressure that world credit markets are under as a result of the sub-prime crisis in the US. Market participants identified the constraints to growth as being insufficient capacity of local investors to take up the paper. From a supply point of view the South African banks have substantial securitisation capacity that is still untapped.
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Burra, Pravin, Pieter Juriaan De Jongh, Helgard Raubenheimer, Gary Van Vuuren, and Henco Wiid. "Implementing the countercyclical capital buffer in South Africa: Practical considerations." South African Journal of Economic and Management Sciences 18, no. 1 (2015): 105–27. http://dx.doi.org/10.4102/sajems.v18i1.956.
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The Basel II regulatory framework significantly increased the resilience of the banking system, but proved ineffective in preventing the 2008/9 financial crisis. The subsequent introduction of Basel III aimed, inter alia, to supplement bank capital using buffers. The countercyclical buffer boosts existing minimum capital requirements when systemic risk surges are detected. Bolstering capital in favourable economic conditions cushions losses in unfavourable conditions, thereby addressing capital requirement procyclicality. This paper contains an overview of the countercyclical capital buffer and a critical discussion of its implementation as proposed in Basel III. Consequences of the buffer's introduction for South African banks are explored, and in particular, potential systemic risk indicator variables are identified that may be used by the South African Reserve Bank (SARB) as early warning indicators of imminent systemic financial distress. These indicators may be of value to the SARB, which could use them in taking decisions on the build-up and release of the countercyclical buffer for South African banks.
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Farese, Giovanni. "Enrico Cuccia, Mediobanca, and the decolonization of Guinea. An attempt at money-doctoring to boost Italian trade with Africa." HISTORY OF ECONOMIC THOUGHT AND POLICY, no. 2 (March 2021): 85–96. http://dx.doi.org/10.3280/spe2020-002005.
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This paper looks at Enrico Cuccia's attempt at establishing an issuing bank, along with a consortium of major European banks, in Ahmed Sekou Toure's Guinea in the aftermath of its independence from France in 1958. The topic is framed both in Mediobanca's African business in the 1950s and in Cuccia's own geopolitical and development views. As Guinea was not an isolated case, the paper also takes into consideration Italy's new place in the postwar world economy and general issues such as the Cold War, decolonization, European integration, as well as the role of merchant banking in shaping foreign economic policy tools and goals.
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Pretorius, M., and G. Shaw. "Business plans in bank decision-making when financing new ventures in South Africa." South African Journal of Economic and Management Sciences 7, no. 2 (2004): 221–41. http://dx.doi.org/10.4102/sajems.v7i2.1377.
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This article focuses on the position that South African commercial banks adopt when evaluating an application for finance of new business ventures. The role and importance of the business plan in the decision-making process is highlighted and investigated. This article begins to qualitatively describe the decision-making processes, criteria and processes instituted by the four major South African commercial banks that between them serve 96 per cent of the banking services for small business. It then questions the barriers placed on applicants applying for finance and recommends how these barriers can be removed. The article concludes that banks finance business ventures with poor potential for success if the applicant is creditworthy or has the necessary security rather than assist applicants with good plans and ventures with potential, but lacking sufficient security.
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Marx, Johan, and Ronald Henry Mynhardt. "The cost of compliance: The case of South African banks." Corporate Ownership and Control 8, no. 3 (2011): 435–42. http://dx.doi.org/10.22495/cocv8i3c4p1.
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Compliance cost is expenditure of time or money in conforming to government requirements such as regulation or legislation. In the press it is stated that the cost of compliance is much too high in South Africa. Some South African regulatory authorities agreed with this opinion. To this end, research was conducted in South Africa to establish whether these opinions are accurate. The study found that the cost of compliance with regulations was unacceptably high for South African banks. The study concluded that banks needed assistance to reduce the cost of compliance. Following the recommendations of the study, calculations indicated that the implementation of these recommendations could reduce the cost of compliance by as much as 40 per cent.
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Maredza, Andrew. "Internal Determinants Of Bank Profitability In South Africa: Does Bank Efficiency Matter?" International Business & Economics Research Journal (IBER) 13, no. 5 (2014): 1033. http://dx.doi.org/10.19030/iber.v13i5.8770.
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In a study conducted by Ncube (2009) to evaluate bank cost and profit efficiency, it was established that South African banks were more efficient at managing costs than generating profits. In this paper, the aim is to complement this particular work by exploring the internal determinants of bank profitability but with more focus on the impact of bank efficiency. Applying a two step-methodology framework to a panel of four small banks and four large banks for the period 2005-2011, total factor productivity efficiency (TFPE) scores were generated using the DEA methodology. Within the first stage, the intermediation approach was followed in which bank inputs included total operating expenses, labour, fixed assets, and total deposits while interest income, non-interest income and gross loans were considered as output variables. Each bank`s efficiency score for each of the periods was then evaluated based on its distance from the constructed efficiency frontier. In the second stage analysis, the Generalised Least Squares Fixed Effects Model was then performed to examine the impact of TFPE among other internal determinant factors on bank profitability indicators, specifically return on average assets (ROAA) and net interest margin (NIM). The obtained empirical findings showed that high total factor productivity efficiency and capital adequacy lead to higher profitability, while high cost inefficiency, diversification activities, large bank size, and high credit risk leads to lower profitability. Of great importance was that both models confirmed the positive role of attaining efficiency as an important driver of profitability among banks.
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Marr, Ana. "Financing the development of poor communities in the Northern Cape of South Africa: An analytical framework for the study of Livestock Banks." Journal of Economic and Financial Sciences 3, no. 1 (2009): 9–30. http://dx.doi.org/10.4102/jef.v3i1.344.
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This paper is part of a major project about the Northern Cape Land Reform and Advocacy (NCLRA) programme being implemented by FARM-Africa* in South Africa. The NCLRA programme had initiated a financial mechanism to help poor communities to get access to finance and training in order to enable them to make better use of their newly-acquired land. One prominent aspect of the programme is the implementation of Livestock Banks, or the use of animals as financial products. The paper provides an analytical framework with which to evaluate the effectiveness of Livestock Banks in the poor communities of the Northern Cape in South Africa. It focuses on the design, implementation and future of Livestock Banks. The paper argues that Livestock Banks need to be reformed and enhanced if they are to continue to play a key role in the goal of creating financial and economic value in Africa, particularly when the primary objective is simultaneously to help reduce poverty.
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Chasomeris, Mihalis G. "South Africa’s Maritime Policy and Transformation of the Shipping Industry." Journal of Interdisciplinary Economics 17, no. 3 (2006): 269–88. http://dx.doi.org/10.1177/02601079x06001700302.
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More than 95 per cent of South Africa’s trade volume is seaborne. Although South Africa is clearly an important sea-trading nation, it is not a significant shipowning or ship operating nation. Despite a decade of democracy, and the improved Ship Registration Act of 1998, the South African merchant marine has continued to decline. South Africa’s new Maritime Charter of December 2003 has the long-term vision “to develop South Africa to become one of the world’s top 35 maritime nations by the year 2014”. Currently, South Africa adopts a strongly market-driven shipping policy. In stark contrast the Charter calls for “a clear strategy/plan for the majority of South African cargo, going through South African ports to be carried on South African ships”. This article argues that although South Africa has a large volume of trade, it does not necessarily have a competitive advantage in the shipment of these goods. Thus policies to promote or protect the national shipping industry might not be in the broader economic interests of South Africa. JEL: R40
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Strydom, M., K. J. Esler, and A. R. Wood. "Acacia saligna seed banks: Sampling methods and dynamics, Western Cape, South Africa." South African Journal of Botany 79 (March 2012): 140–47. http://dx.doi.org/10.1016/j.sajb.2011.10.007.
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Bick, Geoffrey, Andrew Beric Brown, and Russell Abratt. "Customer perceptions of the value delivered by retail banks in South Africa." International Journal of Bank Marketing 22, no. 5 (2004): 300–318. http://dx.doi.org/10.1108/02652320410549638.
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Ilesanmi, Kehinde Damilola, Devi Datt Tewari, and Christian Nsiah. "Management of shadow banks for economic and financial stability in South Africa." Cogent Economics & Finance 7, no. 1 (2019): 1568849. http://dx.doi.org/10.1080/23322039.2019.1568849.
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Riddin, T., and J. B. Adams. "The seed banks of two temporarily open/closed estuaries in South Africa." Aquatic Botany 90, no. 4 (2009): 328–32. http://dx.doi.org/10.1016/j.aquabot.2008.12.003.
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Van Vuuren, Gary Wayne. "Basel III countercyclical capital rules: implications for South Africa." South African Journal of Economic and Management Sciences 15, no. 3 (2012): 309–24. http://dx.doi.org/10.4102/sajems.v15i3.235.
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The financial crisis has been blamed on many entities, institutions and individuals as well as the Basel II accord which had just begun to be implemented globally when the crisis erupted. The criticisms resulted in the construction of Basel III, a series of measures designed to augment and repair (but not replace) the Basel II accord. One of these adjuncts addresses the problem of economic procyclicality and suggests ways to mitigate it through capital charge increases when economies overheat and capital charge reduction in economic contractions. The consequences of this proposed measure's introduction for South African banks is explored.
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de Jager, Johan W., Nuri Wulandari, and Elizma Wannenburg. "CROSS COUNTRY ANALYSIS OF ONLINE BANKING SERVICE QUALITY IN SOUTH AFRICA AND INDONESIA." Eurasian Journal of Economics and Finance 8, no. 4 (2020): 194–203. http://dx.doi.org/10.15604/ejef.2020.08.04.001.
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Since the introduction of automatic teller machines, the online banking industry have evolved rapidly in order to stay abreast of today’s digital savvy customers. By keeping up to date with changes in the external environment as well as consumer needs can elevate the competitive advantage of banks. With that in mind, banks need to ensure that the service quality of the online banking services meets the expectations of its customers. The objective of the study is to evaluate and investigate the online banking customers’ perceptions of the service quality of banks in South Africa (SA) and Indonesia (INA). A survey was conducted among more than 300 respondents from both countries. The results revealed that within the eight dimensions of online banking service quality, each of the countries have different experiences when it comes to “high tech” versus “high touch”. The study has also found significant differences between the perceptions of both SA and INA’s banking customers. By understanding the perceptions of online banking customers in two developing countries can assist financial institutions with the development of new services or technologies that will enhance the online banking experience.
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Hargarter, Antje, and Gary Van Vuuren. "Measuring conduct risk in South African banks." Qualitative Research in Financial Markets 11, no. 3 (2019): 282–304. http://dx.doi.org/10.1108/qrfm-03-2018-0027.
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Purpose This paper aims to examine the problem of conduct-risk measurement for banks, using South Africa as an example of a developing market. Conduct risk is a new and complex phenomenon in global financial services and could negatively impact various stakeholders. There are concerns about new regulations and potential misconduct fines affecting profitability and sustainability for banks. While presenting a serious problem, especially in developing markets, with the added challenge of financial inclusion, conduct risk and its measurement have not been researched sufficiently. If the measurement problem could be solved, the management could be facilitated. Design/methodology/approach Based on a literature review, existing surveys and new interviews, a best-practice proposal for measuring conduct risk was developed. The approach was exploratory and inductive and added primary insights. Findings Measuring concepts like conduct is a global challenge. This aside, South African banking customers are concerned about fraud and safety and administrative service hassles, rather than conduct in the regulatory sense. Best-practice measurement must account for these findings by working with a scoring for behavioural, organisational/procedural and perception indicators and with suggestions for specific surveys. Research limitations/implications Analysing the data measured and deciding what action should be taken if conduct risk is detected could be considered for additional research. Practical implications South African banks are guided in measuring a difficult and unique concept at a time of regulatory change, stakeholder pressures and limited existing knowledge. Originality/value The authors believe this is the first study on a critical and new challenge in banking risk measurement in a developing market.
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Maduane, Refilwe Tryphina, and Kunofiwa Tsaurai. "The link between capital structure and banking sector performance in an emerging economy." Risk Governance and Control: Financial Markets and Institutions 6, no. 4 (2016): 291–97. http://dx.doi.org/10.22495/rgcv6i4c2art6.
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South African banks are small compared to the international standards and this necessitates them to remain efficient and competitive at both national and international levels. Such competitiveness shelter them from global competitors wishing to enter into the South African market. Putting in mind the critical role played by banks in the economic development of every country, managers in the banking industry should ensure they make sound financial decisions in order to remain profitable and competitive amidst challenges of the debt-equity choice. This study seeks to determine the influence of capital structure on profitability of banks listed at the Johannesburg stock exchange (JSE) using the random effect regression model. Empirical studies that studies the impact of capital structure on profitability of the banking sector in emerging markets and Africa are very scant. The few empirical studies that focused on the banking sector are yet to focus on African and to agree on the relationship between capital structure and profitability. It is against these reasons that the current study chose to investigate how profitability of South African banks is affected by their capital structure. The study found out that capital structure is a key determinant of profitability of banks in South Africa. As such, the study recommends that optimal capital policies need to be pursued if banks are to not only to increase profitability but ensure long term stability and sound performance.
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Desta, Tesfatsion Sahlu. "Are the best African banks really the best? A Malmquist data envelopment analysis." Meditari Accountancy Research 24, no. 4 (2016): 588–610. http://dx.doi.org/10.1108/medar-02-2016-0016.
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Purpose This paper aims to examine whether the African commercial banks selected as the best African banks by Global Finance Magazine really are the best. Design/methodology/approach Panel data envelopment analysis (DEA) was used, as well as the Malmquist total factor productivity index, to distinguish productive banks from unproductive banks. Nineteen commercial banks were selected from the 30 best African banks as identified by the Global Finance Magazine. Findings Of the 19 banks, five were found to be unproductive. Bank productivity was attributed mainly to technological change, and different methods marked different results, for example, the regional winner bank (Standard Bank of South Africa) selected by Global Finance Magazine ranked ninth in this study, whereas the Bank Windhoek Limited, Namibia, ranked first. Practical implications The study confirms the applicability of DEA for the banking industry. The model shows variability among the banks’ efficiency and productivity and provides different results to the Global Finance Magazine’s best bank selection. For example, the Standard Bank of South Africa, which is selected as the regional winner, is now ranked ninth under the DEA Malmquist’s total factor productivity. Originality/value The study shows that the DEA model can be applied not only for analysing the firm’s efficiency but also for objective rating, ranking and selecting best banks.
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Erasmus, Coert. "An Empirical Study of Bank Efficiency in South Africa Using the Standard and Alternative Approaches to Data Envelopment Analysis (DEA)." Journal of Economics and Behavioral Studies 6, no. 4 (2014): 310–17. http://dx.doi.org/10.22610/jebs.v6i4.494.
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The paper investigates the efficiency of the major banks of South Africa using the standard and alternative approaches to Data Envelopment Analysis (DEA). The standard DEA approach measures efficiency utilising linear averages of outputs and inputs while the alternative DEA approach utilises nonlinear averages. Individual bank efficiency scores are estimated over the period 2006 to 2012, a period that allows analysis of the efficiency of the banks during the global financial crisis of 2008 to 2009. Under both approaches the majority of the major South African banks were observed to be DEA efficient, with the alternative approach improving the efficiency scores of those banks that were DEA inefficient under the standard approach. The global financial crisis did not affect the efficiency of the majority of the banks. Since the banks were DEA efficient prior the crisis, it could be argued that their efficiency was one of the contributory factors for their resilience during the global financial crisis.
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Akinsola, Foluso Abioye, and Sylvanus Ikhide. "Is commercial bank lending in South Africa procyclical?" Journal of Financial Regulation and Compliance 26, no. 2 (2018): 203–26. http://dx.doi.org/10.1108/jfrc-09-2016-0073.
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PurposeThis paper aims to examine the relationship between commercial bank lending and business cycle in South Africa. This paper attempts to know whether commercial bank lending in South Africa is procyclical.Design/methodology/approachThe model assumed that the lending behaviour is related to the business cycle. In this study, vector error correction model (VECM) is used to capture the relationship between bank lending and business cycle to accurately elicit the macroeconomic long-run relationship between business cycle and bank lending, as some banks might slow down bank lending due to some idiosyncratic factors that are not related to the downturn in the economy. This paper uses data from South African Reserve Bank for the period of 1990-2015 using VECM to understand the extent to which business cycle fluctuation can affect credit crunch in the financial system. The Johansen cointegration approach is used to ascertain whether there is indeed a long-run co-movement between credit growth and business cycle.FindingsResults from the VECM show that there are significant linkages among the variables, especially between credit to gross domestic product (GDP) and business cycle. The influence of business cycle is seen vividly after a period of four to five years, where business cycle explains 20 per cent of the variation in the credit to GDP. South African banks tend to change their lending behaviour during upturns and downturns. This result further confirms the assertion in theory that credit follows business cycle and can amplify credit crunch. The result shows that in the long run, fluctuations in the business cycle can influence the credit growth in South Africa.Research limitations/implicationsThe impulse analysis result shows that the impact of business cycle shock is very persistent and lasting. This also demonstrates that the shocks to the business cycle result have a persistent and long-lasting impact on credit. This study finds that commercial bank lending in South Africa is procyclical. It is suggested that the South African economy needs forward-looking policies that will mitigate the flow of credit to the real sector and at the same time ensure financial stability.Originality/valueMost research papers rarely distinguish between the demand side and supply side of credit procyclicality. This report is presented to develop an econometric model that will examine demand side procyclicality. This study adopts more realistic and novel methods that will help in explaining the relationship between bank lending and business cycle in South Africa, especially after the global financial crisis. This report is presented with a concise and detailed analysis and interpretation.
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Labuschaigne, M., and S. Mahomed. "Regulatory challenges relating to tissue banks in South Africa: Impediments to accessing healthcare." South African Journal of Bioethics and Law 12, no. 1 (2019): 27. http://dx.doi.org/10.7196/sajbl.2019.v12i1.674.
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