The nature of competition in the banking sector and its effect on financial inclusion in South Africa
- Ngonyama, Nomasomi https://orcid.org/0000-0002-7536-9297
- Authors: Ngonyama, Nomasomi https://orcid.org/0000-0002-7536-9297
- Date: 2023
- Subjects: Banks and banking -- South Africa , Competition -- South Africa , Financial services industry
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28661 , vital:74492
- Description: Competition and access to financial services are lauded as key ingredients in the fight against poverty. While competition enhances markets, fosters innovation, productivity and growth, financial inclusion allows the poor to save, access credit and insurance thereby allowing them to meaningfully contribute to economic growth and also smooth their consumption. Moreover, competition reduces the cost of finance, thereby further expanding the availability of financial services. This suggests an important relationship between competition in the banking sector and financial inclusion. Research in this area is still in its infancy and little consensus exists on both whether the relationship is a robust one or not. There is no unanimity on the direction of causality or whether competition in the financial sector is good or bad for markets. This study examines the nexus between banking competition and financial inclusion in Upper-middle income countries. It employed a panel data set over the period 2011-2017 and Generalized Methods of Moments technique was employed to answer this enquiry. The findings of this study suggest that market power is not bad for financial inclusion in upper-middle income countries. Moreover, the study found that bank competition does not matter in banking the unbanked population in Upper-middle income countries. The implication of the findings of this study is that the focus of the policy makers should not be on policies that reduces concentration and market power in the banking sector, but be on measures that encourages contestability. The threat of entry is sufficient to make banks behave in a competitive manner. , Thesis (PhD) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023
- Authors: Ngonyama, Nomasomi https://orcid.org/0000-0002-7536-9297
- Date: 2023
- Subjects: Banks and banking -- South Africa , Competition -- South Africa , Financial services industry
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28661 , vital:74492
- Description: Competition and access to financial services are lauded as key ingredients in the fight against poverty. While competition enhances markets, fosters innovation, productivity and growth, financial inclusion allows the poor to save, access credit and insurance thereby allowing them to meaningfully contribute to economic growth and also smooth their consumption. Moreover, competition reduces the cost of finance, thereby further expanding the availability of financial services. This suggests an important relationship between competition in the banking sector and financial inclusion. Research in this area is still in its infancy and little consensus exists on both whether the relationship is a robust one or not. There is no unanimity on the direction of causality or whether competition in the financial sector is good or bad for markets. This study examines the nexus between banking competition and financial inclusion in Upper-middle income countries. It employed a panel data set over the period 2011-2017 and Generalized Methods of Moments technique was employed to answer this enquiry. The findings of this study suggest that market power is not bad for financial inclusion in upper-middle income countries. Moreover, the study found that bank competition does not matter in banking the unbanked population in Upper-middle income countries. The implication of the findings of this study is that the focus of the policy makers should not be on policies that reduces concentration and market power in the banking sector, but be on measures that encourages contestability. The threat of entry is sufficient to make banks behave in a competitive manner. , Thesis (PhD) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023
The adoption of the twin peaks model in the regulation of South African financial markets : a comparative analysis.
- Marange, Patience https://orcid.org/ 0000-0003-4405-2702
- Authors: Marange, Patience https://orcid.org/ 0000-0003-4405-2702
- Date: 2021-09
- Subjects: Financial services industry , Financial services industry--Law and legislation
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/21278 , vital:48175
- Description: Over two decades ago, a number of countries have changed their financial regulatory models. The growing complexity of financial products, the increasing challenge of regulating large financial conglomerates, and the repercussions of the 2008 Global Financial Crisis, amongst other factors, have made regulatory reform a key priority for many economies. A move towards the Twin Peaks model of financial regulation has been one of the trends in recent years. This model sees regulation split into two broad functions which are market conduct regulation and prudential regulation. South Africa adopted the Twin Peaks financial regulatory model in 2017 as a way of strengthening its financial regulatory model. By adopting the Twin Peaks model, South Africa has become the eighth and the first developing country to adopt the financial regulatory model. The adoption of the Twin Peaks financial regulatory model in South Africa was mainly inspired by the effects of the 2008 Global Financial Crisis. This study undertakes a comparison of the Twin Peaks model structure in South Africa with the structure of its counterparts, which are Australia, United Kingdom and the Netherlands. In doing so, the study identifies the strengths and possible weaknesses of the model in South Africa. The study discusses the extent to which the South African Twin Peaks model reflects international experience. The study traces the evolution of the financial markets and its regulation. It also delves into the main models of the regulation of financial services industry including the Twin Peaks model, which is the focus of the study. The rationale of South Africa’s adoption of the Twin Peaks model is also considered. The Twin Peaks model was introduced in South Africa through the enactment of the Financial Sector Regulatory Act. This legislation reveals that South Africa has drawn increasingly on international experience, particularly the structural design and the cooperation and collaboration of the regulators. It also reveals similarities, notable differences as well as characteristics that might be regarded as unique to South Africa. The similarities reveal that the South African Twin Peaks greatly aligns with that of its counterparts. This is exemplified through the cooperation and coordination between the regulators and the relationship between the regulators and the government amongst others. The study explores insights and lessons to South Africa which can be learnt from its counterparts like the need for effective coordination amongst the Twin Peak regulators. Thereafter, the study puts forward recommendations for reform, which can enable the effective implementation of the Twin Peaks financial regulatory architecture. , Thesis (MA) (Laws) -- University of Fort Hare, 2021
- Full Text:
- Date Issued: 2021-09
- Authors: Marange, Patience https://orcid.org/ 0000-0003-4405-2702
- Date: 2021-09
- Subjects: Financial services industry , Financial services industry--Law and legislation
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/21278 , vital:48175
- Description: Over two decades ago, a number of countries have changed their financial regulatory models. The growing complexity of financial products, the increasing challenge of regulating large financial conglomerates, and the repercussions of the 2008 Global Financial Crisis, amongst other factors, have made regulatory reform a key priority for many economies. A move towards the Twin Peaks model of financial regulation has been one of the trends in recent years. This model sees regulation split into two broad functions which are market conduct regulation and prudential regulation. South Africa adopted the Twin Peaks financial regulatory model in 2017 as a way of strengthening its financial regulatory model. By adopting the Twin Peaks model, South Africa has become the eighth and the first developing country to adopt the financial regulatory model. The adoption of the Twin Peaks financial regulatory model in South Africa was mainly inspired by the effects of the 2008 Global Financial Crisis. This study undertakes a comparison of the Twin Peaks model structure in South Africa with the structure of its counterparts, which are Australia, United Kingdom and the Netherlands. In doing so, the study identifies the strengths and possible weaknesses of the model in South Africa. The study discusses the extent to which the South African Twin Peaks model reflects international experience. The study traces the evolution of the financial markets and its regulation. It also delves into the main models of the regulation of financial services industry including the Twin Peaks model, which is the focus of the study. The rationale of South Africa’s adoption of the Twin Peaks model is also considered. The Twin Peaks model was introduced in South Africa through the enactment of the Financial Sector Regulatory Act. This legislation reveals that South Africa has drawn increasingly on international experience, particularly the structural design and the cooperation and collaboration of the regulators. It also reveals similarities, notable differences as well as characteristics that might be regarded as unique to South Africa. The similarities reveal that the South African Twin Peaks greatly aligns with that of its counterparts. This is exemplified through the cooperation and coordination between the regulators and the relationship between the regulators and the government amongst others. The study explores insights and lessons to South Africa which can be learnt from its counterparts like the need for effective coordination amongst the Twin Peak regulators. Thereafter, the study puts forward recommendations for reform, which can enable the effective implementation of the Twin Peaks financial regulatory architecture. , Thesis (MA) (Laws) -- University of Fort Hare, 2021
- Full Text:
- Date Issued: 2021-09
The impact of financial inclusion on poverty: a case of selected SADC countries.
- Authors: Ndlovu, Nkazimulo Glitter
- Date: 2021-09
- Subjects: Financial services industry , Poverty--Africa , Poverty
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/21311 , vital:48393
- Description: Financial inclusion is widely regarded as another conduit through which poverty can be alleviated. However, both theoretical and empirical literature does not reach consensus on the effect of financial inclusion on poverty. Against this background, the study empirically examines the effect of financial inclusion on poverty in selected Southern African Development Community (SADC) countries, which include (Botswana, Malawi, Mauritius, Namibia, South Africa, Tanzania, and Zambia). The author employs the Generalized Method of Moments (GMM) technique for the period 1980 to 2019. Based on the Financial Intermediation Theory and the Social Justice Theory: Tunnel effect, 5 different models were estimated. Variables used to capture the different dimensions of financial inclusion include ATMs per 1000km and Bank Accounts per 1000 adults as well as Bank’s private Credit to GDP and Commercial Bank branches per 1000 adults’. The control variables used in the study are; GDP per Capita, Government Consumption, Inflation and Education. Empirical results revealed that financial inclusion reduces the level of poverty in the selected SADC states. The results also revealed that GDP per capita and government spending have a negative effect on poverty in the region. An interesting finding, even though not the major focus of the study was the effect of education. The results revealed that lower levels of education may exacerbate the level of poverty in the region. At the same time, tertiary education was found to have a negative and significant effect on poverty. The empirical results imply that policy makers should center their focus on reforms that will ensure that more people are financially included in the region. Also policies promoting high growth levels and acquisition of higher levels of education should be pursued. , Thesis (MCom) (Economics) -- University of Fort Hare, 2021
- Full Text:
- Date Issued: 2021-09
- Authors: Ndlovu, Nkazimulo Glitter
- Date: 2021-09
- Subjects: Financial services industry , Poverty--Africa , Poverty
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/21311 , vital:48393
- Description: Financial inclusion is widely regarded as another conduit through which poverty can be alleviated. However, both theoretical and empirical literature does not reach consensus on the effect of financial inclusion on poverty. Against this background, the study empirically examines the effect of financial inclusion on poverty in selected Southern African Development Community (SADC) countries, which include (Botswana, Malawi, Mauritius, Namibia, South Africa, Tanzania, and Zambia). The author employs the Generalized Method of Moments (GMM) technique for the period 1980 to 2019. Based on the Financial Intermediation Theory and the Social Justice Theory: Tunnel effect, 5 different models were estimated. Variables used to capture the different dimensions of financial inclusion include ATMs per 1000km and Bank Accounts per 1000 adults as well as Bank’s private Credit to GDP and Commercial Bank branches per 1000 adults’. The control variables used in the study are; GDP per Capita, Government Consumption, Inflation and Education. Empirical results revealed that financial inclusion reduces the level of poverty in the selected SADC states. The results also revealed that GDP per capita and government spending have a negative effect on poverty in the region. An interesting finding, even though not the major focus of the study was the effect of education. The results revealed that lower levels of education may exacerbate the level of poverty in the region. At the same time, tertiary education was found to have a negative and significant effect on poverty. The empirical results imply that policy makers should center their focus on reforms that will ensure that more people are financially included in the region. Also policies promoting high growth levels and acquisition of higher levels of education should be pursued. , Thesis (MCom) (Economics) -- University of Fort Hare, 2021
- Full Text:
- Date Issued: 2021-09
Investigating the relationship between human resource practices and organisational commitment amongst financial advisors in an insurance company in Kwa-Zulu Natal
- Authors: Appasamy, Sherilyn
- Date: 2020
- Subjects: Financial services industry
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/47514 , vital:40120
- Description: The insurance sector within the financial services industry faces a significant human capital dilemma due to its largely aging workforce. Over the last decade, the financial services industry has been plagued by enormous and complex change. This plethora of change is as a result of changing regulatory landscape, the evolving digitalisation of the world and the state of the declining youth African economy. This uncertainty and instability has the potential to impact the career aspirations of financial advisors in the insurance sector as they experience many hurdles to growth. This volatility also impacts organisations as attraction into the role diminishes. Human Resource Management practices which are meant to fulfill strategic partnership role within organisations are meant to guide business accordingly to attract and retain top talent. This paper presents an investigation of Human Resource Management (HRM) practices within an insurance company and the impact of Human Resources Management practices on the organisational commitment of financial advisors. An empirical study, consisting of an online questionnaire, was conducted amongst 102 employees from an insurance company in Kwa-Zulu Natal. The analysis revealed that the relationship of HRM practices to organisational commitment outcomes in the insurance company was exclusive in that only three of the five HRM practices being recruitment and selection; training and development; and workplace culture and climate, were found to be positively and significantly related to the organisational commitment of advisors. It was concluded that recruitment and selection plays an important role in matching the right skills, abilities and personality for the job. There is a critical need for the shift in focus from academy classroom learning to on-the-job practical training and mentorship from senior advisors. Thirdly, workplace climate and culture is a key determinant into whether an employee will stay and creating a space which is diverse, flexible and harnesses work-life integration will be more critical moving forward.
- Full Text:
- Date Issued: 2020
- Authors: Appasamy, Sherilyn
- Date: 2020
- Subjects: Financial services industry
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/47514 , vital:40120
- Description: The insurance sector within the financial services industry faces a significant human capital dilemma due to its largely aging workforce. Over the last decade, the financial services industry has been plagued by enormous and complex change. This plethora of change is as a result of changing regulatory landscape, the evolving digitalisation of the world and the state of the declining youth African economy. This uncertainty and instability has the potential to impact the career aspirations of financial advisors in the insurance sector as they experience many hurdles to growth. This volatility also impacts organisations as attraction into the role diminishes. Human Resource Management practices which are meant to fulfill strategic partnership role within organisations are meant to guide business accordingly to attract and retain top talent. This paper presents an investigation of Human Resource Management (HRM) practices within an insurance company and the impact of Human Resources Management practices on the organisational commitment of financial advisors. An empirical study, consisting of an online questionnaire, was conducted amongst 102 employees from an insurance company in Kwa-Zulu Natal. The analysis revealed that the relationship of HRM practices to organisational commitment outcomes in the insurance company was exclusive in that only three of the five HRM practices being recruitment and selection; training and development; and workplace culture and climate, were found to be positively and significantly related to the organisational commitment of advisors. It was concluded that recruitment and selection plays an important role in matching the right skills, abilities and personality for the job. There is a critical need for the shift in focus from academy classroom learning to on-the-job practical training and mentorship from senior advisors. Thirdly, workplace climate and culture is a key determinant into whether an employee will stay and creating a space which is diverse, flexible and harnesses work-life integration will be more critical moving forward.
- Full Text:
- Date Issued: 2020
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