An analysis of fusing advanced malware email protection logs, malware intelligence and active directory attributes as an instrument for threat intelligence
- Authors: Vermeulen, Japie
- Date: 2018
- Subjects: Malware (Computer software) , Computer networks Security measures , Data mining , Phishing , Data logging , Quantitative research
- Language: English
- Type: text , Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10962/63922 , vital:28506
- Description: After more than four decades email is still the most widely used electronic communication medium today. This electronic communication medium has evolved into an electronic weapon of choice for cyber criminals ranging from the novice to the elite. As cyber criminals evolve with tools, tactics and procedures, so too are technology vendors coming forward with a variety of advanced malware protection systems. However, even if an organization adopts such a system, there is still the daily challenge of interpreting the log data and understanding the type of malicious email attack, including who the target was and what the payload was. This research examines a six month data set obtained from an advanced malware email protection system from a bank in South Africa. Extensive data fusion techniques are used to provide deeper insight into the data by blending these with malware intelligence and business context. The primary data set is fused with malware intelligence to identify the different malware families associated with the samples. Active Directory attributes such as the business cluster, department and job title of users targeted by malware are also fused into the combined data. This study provides insight into malware attacks experienced in the South African financial services sector. For example, most of the malware samples identified belonged to different types of ransomware families distributed by known botnets. However, indicators of targeted attacks were observed based on particular employees targeted with exploit code and specific strains of malware. Furthermore, a short time span between newly discovered vulnerabilities and the use of malicious code to exploit such vulnerabilities through email were observed in this study. The fused data set provided the context to answer the “who”, “what”, “where” and “when”. The proposed methodology can be applied to any organization to provide insight into the malware threats identified by advanced malware email protection systems. In addition, the fused data set provides threat intelligence that could be used to strengthen the cyber defences of an organization against cyber threats.
- Full Text:
- Date Issued: 2018
- Authors: Vermeulen, Japie
- Date: 2018
- Subjects: Malware (Computer software) , Computer networks Security measures , Data mining , Phishing , Data logging , Quantitative research
- Language: English
- Type: text , Thesis , Masters , MSc
- Identifier: http://hdl.handle.net/10962/63922 , vital:28506
- Description: After more than four decades email is still the most widely used electronic communication medium today. This electronic communication medium has evolved into an electronic weapon of choice for cyber criminals ranging from the novice to the elite. As cyber criminals evolve with tools, tactics and procedures, so too are technology vendors coming forward with a variety of advanced malware protection systems. However, even if an organization adopts such a system, there is still the daily challenge of interpreting the log data and understanding the type of malicious email attack, including who the target was and what the payload was. This research examines a six month data set obtained from an advanced malware email protection system from a bank in South Africa. Extensive data fusion techniques are used to provide deeper insight into the data by blending these with malware intelligence and business context. The primary data set is fused with malware intelligence to identify the different malware families associated with the samples. Active Directory attributes such as the business cluster, department and job title of users targeted by malware are also fused into the combined data. This study provides insight into malware attacks experienced in the South African financial services sector. For example, most of the malware samples identified belonged to different types of ransomware families distributed by known botnets. However, indicators of targeted attacks were observed based on particular employees targeted with exploit code and specific strains of malware. Furthermore, a short time span between newly discovered vulnerabilities and the use of malicious code to exploit such vulnerabilities through email were observed in this study. The fused data set provided the context to answer the “who”, “what”, “where” and “when”. The proposed methodology can be applied to any organization to provide insight into the malware threats identified by advanced malware email protection systems. In addition, the fused data set provides threat intelligence that could be used to strengthen the cyber defences of an organization against cyber threats.
- Full Text:
- Date Issued: 2018
An exploration of organizational expectations of different generations of employees during change
- Authors: Kawana, Susan Mulemwa
- Date: 2020
- Subjects: Organizational change -- Psychological aspects , Organizational behavior -- Namibia -- Case studies , Employees -- Psychology -- Namibia , Organizational change -- Namibia -- Case studies , Intergenerational relations -- Namibia , Namibia. Inland Revenue Directorate , Namibia. Customs and Excise
- Language: English
- Type: text , Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/142398 , vital:38076
- Description: The aim of this study is to investigate the organizational expectations of different generations of employees at the Ministry of Finance’s Inland Revenue and Customs and Excise Departments of the Republic of Namibia, which are undergoing organizational change processes. The different generations that were included in this study are Baby Boomers, Generation X, and Generation Y. The study explores the different expectations that the generations have in relation to the changes, in terms of leadership style and communication preferences. This study followed a qualitative approach. Quota sampling was used to select twelve participants for the study. The case study was carried out within a postpositivism paradigm. Data was collected by administering semi-structured, face-to-face interviews. The findings of the study indicate that there are generational differences in respect of preferred leadership styles and communication methods during organizational change. Baby Boomers and Generation X preferred a relationshiporiented leadership style, while generation Y preferred a visionary leadership style. Task-oriented leadership style was not the preferred style of any generation. Rather, in the midst of change, it seems there is a preference for relational leadership across all the Generations. In respect of communication, Baby Boomers preferred face-toface methods, Generation X preferred face-to-face and e-mail methods as sources of change communication, while Generation Y preferred a combination of communication methods. In the midst of change, it seems there is a common preference for face-to-face communication across all the Generations. Furthermore, employees generally did not feel ready for the changes. In the light of these findings, recommendations were made to guide change initiatives amongst employees of various generations. The limitations of the study were its sample size and focus on the public sector. For future research, a larger sample could be selected from all regional offices. Similar research can also be done in the private sector. The findings of the study provide an understanding of the experiences and expectations of different generations of employees during organizational change, and contribute to the body of knowledge on generational differences, readiness for change and the management of different generations as different stakeholders.
- Full Text:
- Date Issued: 2020
- Authors: Kawana, Susan Mulemwa
- Date: 2020
- Subjects: Organizational change -- Psychological aspects , Organizational behavior -- Namibia -- Case studies , Employees -- Psychology -- Namibia , Organizational change -- Namibia -- Case studies , Intergenerational relations -- Namibia , Namibia. Inland Revenue Directorate , Namibia. Customs and Excise
- Language: English
- Type: text , Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/142398 , vital:38076
- Description: The aim of this study is to investigate the organizational expectations of different generations of employees at the Ministry of Finance’s Inland Revenue and Customs and Excise Departments of the Republic of Namibia, which are undergoing organizational change processes. The different generations that were included in this study are Baby Boomers, Generation X, and Generation Y. The study explores the different expectations that the generations have in relation to the changes, in terms of leadership style and communication preferences. This study followed a qualitative approach. Quota sampling was used to select twelve participants for the study. The case study was carried out within a postpositivism paradigm. Data was collected by administering semi-structured, face-to-face interviews. The findings of the study indicate that there are generational differences in respect of preferred leadership styles and communication methods during organizational change. Baby Boomers and Generation X preferred a relationshiporiented leadership style, while generation Y preferred a visionary leadership style. Task-oriented leadership style was not the preferred style of any generation. Rather, in the midst of change, it seems there is a preference for relational leadership across all the Generations. In respect of communication, Baby Boomers preferred face-toface methods, Generation X preferred face-to-face and e-mail methods as sources of change communication, while Generation Y preferred a combination of communication methods. In the midst of change, it seems there is a common preference for face-to-face communication across all the Generations. Furthermore, employees generally did not feel ready for the changes. In the light of these findings, recommendations were made to guide change initiatives amongst employees of various generations. The limitations of the study were its sample size and focus on the public sector. For future research, a larger sample could be selected from all regional offices. Similar research can also be done in the private sector. The findings of the study provide an understanding of the experiences and expectations of different generations of employees during organizational change, and contribute to the body of knowledge on generational differences, readiness for change and the management of different generations as different stakeholders.
- Full Text:
- Date Issued: 2020
An analysis, from a South African case law perspective, of the deductibility of losses due to embezzlement, fraud, theft, damages and compensation
- Authors: Jachi, Adelaide Gamuchirai
- Date: 2018
- Subjects: South Africa. Income Tax Act, 1962 , Tax deductions -- South Africa , Taxation -- Law and legislation -- South Africa , Tax courts -- South Africa , Tax administration and procedure -- South Africa , Tax accounting -- South Africa , Income tax deductions for losses -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60855 , vital:27846
- Description: When calculating the income tax payable for a year of assessment, a taxpayer deducts from his or her or its income, allowable deductions in terms of the preamble to section 11 and section 11(a) as read with section 23(g) of the Income Tax Act, 58 of 1962. Amongst the expenditure and losses incurred by a taxpayer during a year of assessment, a claim may be sought for the deduction of losses incurred due to embezzlement, fraud and theft as well as damages and compensation. The requirements of the preamble and section 11(a) include the requirement that expenditure and losses must be incurred “in the production of the income”. Losses incurred due to defalcations, as well as expenditure on damages and compensation must satisfy this requirement to be allowed as deductions. The objective of the research was to analyse the judicial decisions dealing with “in the production of the income” in granting a deduction for income tax purposes in cases dealing with embezzlement, fraud and theft, and damages and compensation, to establish why the courts grant or disallow the deduction of expenditure and losses. A doctrinal research methodology was applied to the research. The provisions of the Income Tax Act, relevant case law relating to embezzlement, fraud and theft, and damages and compensation, and the contributions of the revenue authority and tax experts in articles of accredited journals, textbooks and other writings were analysed. The major conclusions drawn from the research were that losses due to defalcations are regarded as having been incurred “in the production of the income” if the taxpayer discharges the onus of proof that the risk of the act leading to misappropriation is an incidental risk of the business. Expenditure on damages and compensation is deductible provided the expense is attached to the performance of a business operation bona fide performed for the purpose of earning income and the expense is so closely connected with the business operation as to be regarded as part of the cost of performing it. Where negligence is attached to an expense or loss, the South African courts have held that negligence does not increase the likelihood of disallowing an expense or loss as not having been incurred “in the production of the income”.
- Full Text:
- Date Issued: 2018
- Authors: Jachi, Adelaide Gamuchirai
- Date: 2018
- Subjects: South Africa. Income Tax Act, 1962 , Tax deductions -- South Africa , Taxation -- Law and legislation -- South Africa , Tax courts -- South Africa , Tax administration and procedure -- South Africa , Tax accounting -- South Africa , Income tax deductions for losses -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60855 , vital:27846
- Description: When calculating the income tax payable for a year of assessment, a taxpayer deducts from his or her or its income, allowable deductions in terms of the preamble to section 11 and section 11(a) as read with section 23(g) of the Income Tax Act, 58 of 1962. Amongst the expenditure and losses incurred by a taxpayer during a year of assessment, a claim may be sought for the deduction of losses incurred due to embezzlement, fraud and theft as well as damages and compensation. The requirements of the preamble and section 11(a) include the requirement that expenditure and losses must be incurred “in the production of the income”. Losses incurred due to defalcations, as well as expenditure on damages and compensation must satisfy this requirement to be allowed as deductions. The objective of the research was to analyse the judicial decisions dealing with “in the production of the income” in granting a deduction for income tax purposes in cases dealing with embezzlement, fraud and theft, and damages and compensation, to establish why the courts grant or disallow the deduction of expenditure and losses. A doctrinal research methodology was applied to the research. The provisions of the Income Tax Act, relevant case law relating to embezzlement, fraud and theft, and damages and compensation, and the contributions of the revenue authority and tax experts in articles of accredited journals, textbooks and other writings were analysed. The major conclusions drawn from the research were that losses due to defalcations are regarded as having been incurred “in the production of the income” if the taxpayer discharges the onus of proof that the risk of the act leading to misappropriation is an incidental risk of the business. Expenditure on damages and compensation is deductible provided the expense is attached to the performance of a business operation bona fide performed for the purpose of earning income and the expense is so closely connected with the business operation as to be regarded as part of the cost of performing it. Where negligence is attached to an expense or loss, the South African courts have held that negligence does not increase the likelihood of disallowing an expense or loss as not having been incurred “in the production of the income”.
- Full Text:
- Date Issued: 2018
Feasibility Study: Imagining A Cultural/Healing Centre for the Northern Areas of Nelson Mandela Bay: Conference Publication: Healing Through Heritage and Memorialisation
- Date: 2016-10
- Subjects: South Africa -- Politics and government , South Africa -- History -- 20th century , Government, Resistance to -- South Africa
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10948/41338 , vital:36451 , Bulk File 7
- Description: The Northern Areas History and Heritage Project consists of a variety workshops and materials examining the history of this part of Port Elizabeth to which people of colour had been removed in the 1970s. The materials include a book and DVD on the Northern Areas Uprising; six booklets entitled ‘Feasibility Study: Imagining a Cultural/ Healing Centre for the Northern Areas of Nelson Mandela Bay’ covering topics such as the Northern Areas Uprising, healing through memorialisation, architecture, non-profit organisations, archives and databases; 35 DVDs consisting of interviews with individuals, communities and focus groups, as well as a Winter School Project on Apartheid and the Group Areas Act. Also included are two maps relating to the area’s history.
- Full Text: false
- Date Issued: 2016-10
- Date: 2016-10
- Subjects: South Africa -- Politics and government , South Africa -- History -- 20th century , Government, Resistance to -- South Africa
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10948/41338 , vital:36451 , Bulk File 7
- Description: The Northern Areas History and Heritage Project consists of a variety workshops and materials examining the history of this part of Port Elizabeth to which people of colour had been removed in the 1970s. The materials include a book and DVD on the Northern Areas Uprising; six booklets entitled ‘Feasibility Study: Imagining a Cultural/ Healing Centre for the Northern Areas of Nelson Mandela Bay’ covering topics such as the Northern Areas Uprising, healing through memorialisation, architecture, non-profit organisations, archives and databases; 35 DVDs consisting of interviews with individuals, communities and focus groups, as well as a Winter School Project on Apartheid and the Group Areas Act. Also included are two maps relating to the area’s history.
- Full Text: false
- Date Issued: 2016-10
Love in a cold war
- Authors: Christenson, Anna
- Date: 2015
- Subjects: South African fiction (English) -- 21st century
- Language: English
- Type: text , Thesis , Masters , MA
- Identifier: vital:5988
- Description: A collection of short stories in two parts written in realist and fabulist styles. The first part looks at the post-war generation of baby boomers growing up in the American Midwest. The second half follows an American abroad and explores themes of disintegration, the shifting power balance in relationships and the terrible hole at the core of expatriate identity.
- Full Text:
- Date Issued: 2015
- Authors: Christenson, Anna
- Date: 2015
- Subjects: South African fiction (English) -- 21st century
- Language: English
- Type: text , Thesis , Masters , MA
- Identifier: vital:5988
- Description: A collection of short stories in two parts written in realist and fabulist styles. The first part looks at the post-war generation of baby boomers growing up in the American Midwest. The second half follows an American abroad and explores themes of disintegration, the shifting power balance in relationships and the terrible hole at the core of expatriate identity.
- Full Text:
- Date Issued: 2015
Rhodes University Graduation Ceremony 2006
- Authors: Rhodes University
- Date: 2006
- Language: English
- Type: text
- Identifier: vital:8141 , http://hdl.handle.net/10962/d1007254
- Description: Rhodes University Graduation Ceremonies [at] 1820 Settlers National Monument Thursday, 6 April 2006 at 18.00 [and] Friday, 7 April 2006 at 10:30; 14:30 & 18:00 [and] Saturday, 8 April 2006 at 10:30 , Inauguration Ceremony [of] Dr Saleem Badat [as] Principal and Vice-Chancellor [at the] 1820 Settlers National Monument [on] Wednesday, 27 September 2006 at 18:15.
- Full Text:
- Date Issued: 2006
- Authors: Rhodes University
- Date: 2006
- Language: English
- Type: text
- Identifier: vital:8141 , http://hdl.handle.net/10962/d1007254
- Description: Rhodes University Graduation Ceremonies [at] 1820 Settlers National Monument Thursday, 6 April 2006 at 18.00 [and] Friday, 7 April 2006 at 10:30; 14:30 & 18:00 [and] Saturday, 8 April 2006 at 10:30 , Inauguration Ceremony [of] Dr Saleem Badat [as] Principal and Vice-Chancellor [at the] 1820 Settlers National Monument [on] Wednesday, 27 September 2006 at 18:15.
- Full Text:
- Date Issued: 2006
“Don’t forget to be awesome”: the role of social learning as a component of belonging in virtual communities: a case study of the Youtube fan community “Nerdfighteria”
- Authors: Steenkamp, Elri Colleen
- Date: 2018
- Subjects: Nerdfighteria (Online) , Social learning , Online social networks , Belonging (Social psychology) , Communities of practice , YouTube (Firm)
- Language: English
- Type: text , Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10962/63753 , vital:28484
- Description: The growth of the Internet has allowed fans who consume various media products, to interact and convene with other who share similar interests in online fan communities. Historically the study of fans has focused on pleasure and enjoyment as the main motivating factors why individual fans join, stay and participate in fan communities. This study, however, suggests that learning as a component of belonging has been underestimated within contemporary fan studies. Close examination of the literature of fan studies and the social practices of online fan communities reveal that these spaces may serve as fertile spaces for learning and the sharing of knowledge. Daily learning occurs within multiple spheres, including personal interests, peer culture, and academic content; all elements which can be found within fan communities. This study used the social learning theory “communities of practice” (CoP) model developed by Wenger (1998) to understand of this element of learning and knowledge sharing that seems to take places within fan communities. This study explores learning as a component of belonging to online fan communities by using the fan community of the YouTube personalities Vlogbrothers, which has named itself Nerdfighteria, as a case study. Through a qualitative research approach, which includes participation observation methods and qualitative interviews, this thesis has analysed the fan community Nerdfighteria, and used two Nerdfighter fan Facebook groups, the global NERDFIGHTEIRIA and local Nerdfighters South Africa, as case studies to evaluate whether the elements of learning taking place within these spaces serves as a motivating factor for belonging and participation. The results of this research support the idea that learning plays a role within the fan community Nerdfighteria and thus that it functions as a CoP. Fans within the global NERDFIGHTERIA Facebook group use this fan space to discuss and debate content related to their media of choice; thereby learning and acquiring knowledge as a CoP. The Nerdfighters South Africa Facebook group, despite the learning potential, fails to function as a CoP because it is no longer functionally allows for shared learning. Online fan communities, this research found, have the potential to serve as functioning communities of practice (CoP) only if they embody the characteristics and practicalities consistent with a learning space. Overall these fan groups may be categorised as communities of interests but sub-sections within these communities fit the criteria of a community of practice due to the kind of learning that is taking place. This research supports an alternative, yet promising, approach to the study of fan online communities which prioritises learning.
- Full Text:
- Date Issued: 2018
- Authors: Steenkamp, Elri Colleen
- Date: 2018
- Subjects: Nerdfighteria (Online) , Social learning , Online social networks , Belonging (Social psychology) , Communities of practice , YouTube (Firm)
- Language: English
- Type: text , Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10962/63753 , vital:28484
- Description: The growth of the Internet has allowed fans who consume various media products, to interact and convene with other who share similar interests in online fan communities. Historically the study of fans has focused on pleasure and enjoyment as the main motivating factors why individual fans join, stay and participate in fan communities. This study, however, suggests that learning as a component of belonging has been underestimated within contemporary fan studies. Close examination of the literature of fan studies and the social practices of online fan communities reveal that these spaces may serve as fertile spaces for learning and the sharing of knowledge. Daily learning occurs within multiple spheres, including personal interests, peer culture, and academic content; all elements which can be found within fan communities. This study used the social learning theory “communities of practice” (CoP) model developed by Wenger (1998) to understand of this element of learning and knowledge sharing that seems to take places within fan communities. This study explores learning as a component of belonging to online fan communities by using the fan community of the YouTube personalities Vlogbrothers, which has named itself Nerdfighteria, as a case study. Through a qualitative research approach, which includes participation observation methods and qualitative interviews, this thesis has analysed the fan community Nerdfighteria, and used two Nerdfighter fan Facebook groups, the global NERDFIGHTEIRIA and local Nerdfighters South Africa, as case studies to evaluate whether the elements of learning taking place within these spaces serves as a motivating factor for belonging and participation. The results of this research support the idea that learning plays a role within the fan community Nerdfighteria and thus that it functions as a CoP. Fans within the global NERDFIGHTERIA Facebook group use this fan space to discuss and debate content related to their media of choice; thereby learning and acquiring knowledge as a CoP. The Nerdfighters South Africa Facebook group, despite the learning potential, fails to function as a CoP because it is no longer functionally allows for shared learning. Online fan communities, this research found, have the potential to serve as functioning communities of practice (CoP) only if they embody the characteristics and practicalities consistent with a learning space. Overall these fan groups may be categorised as communities of interests but sub-sections within these communities fit the criteria of a community of practice due to the kind of learning that is taking place. This research supports an alternative, yet promising, approach to the study of fan online communities which prioritises learning.
- Full Text:
- Date Issued: 2018
Learning and teaching
- Date: 2020
- Subjects: Nelson Mandela University , Education, Higher -- Curricula , Education, Higher -- Study and teaching
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10948/44433 , vital:37379
- Description: Nelson Mandela University is recognised as a leader in embracing a humanising pedagogical philosophy or the ‘humanisation of education’. This is the touchstone of learning and teaching at our University for a number of reasons, of which I will name a few. It is about creating an environment that is conducive to bold thinking and questioning; dislodging outdated theories and narrow-minded preconceptions of teaching, learning and engagement in order to stimulate an alternative, emancipatory approach to higher education; and pioneering new programmatic interventions and recognitions of what teaching and learning in South Africa is about.
- Full Text:
- Date Issued: 2020
- Date: 2020
- Subjects: Nelson Mandela University , Education, Higher -- Curricula , Education, Higher -- Study and teaching
- Language: English
- Type: text , book
- Identifier: http://hdl.handle.net/10948/44433 , vital:37379
- Description: Nelson Mandela University is recognised as a leader in embracing a humanising pedagogical philosophy or the ‘humanisation of education’. This is the touchstone of learning and teaching at our University for a number of reasons, of which I will name a few. It is about creating an environment that is conducive to bold thinking and questioning; dislodging outdated theories and narrow-minded preconceptions of teaching, learning and engagement in order to stimulate an alternative, emancipatory approach to higher education; and pioneering new programmatic interventions and recognitions of what teaching and learning in South Africa is about.
- Full Text:
- Date Issued: 2020
The value of economic capital as an indicator to protect prospective and existing ordinary shareholders
- Authors: Chonzi, Tendai Day
- Date: 2020
- Subjects: Banks and banking -- Risk management -- South Africa , Financial services industry -- Risk management -- South Africa , ABSA Bank , FirstRand Limited , Nedbank , Standard Bank Limited , Capitec Bank (South Africa)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/145807 , vital:38468
- Description: South Africans banking sector is one of the most dominating banking sectors in Africa. The banking sector is privately owned and involves a lot of different stakeholders, who risk losing their investments. One of the stakeholders who are the bottom of the repayment chain are existing ordinary shareholders because they risk losing all their investment in the result of bankruptcy, liquidity crises or the inability of the bank to repay their shareholders. Regulators in the banking sector only protect the depositor and the stability of the banking sector but not ordinary shareholders. An internal supervisory measure called economic capital has recently received more attention because of its aim to protect ordinary shareholders and thus, existing and prospective shareholders can use its value as a protective indicator. Economic theory assumes that the higher the value of economic capital (the lower the economic capital shortfall), the lower the return on investment for existing ordinary shareholders. The aforementioned shows a trade-off between protection (economic capital) and returns. Literature by Larsson (2009) further suggests that banks are always reluctant with implementing internal measures to protect themselves because of the good regulatory regime in the sector, some banks think that they are “too big to fail” and the fact that the reserve banks are always on the standby as a bailout. The purpose of this research is to examine which of the top five commercial banks in South African actively protect their existing ordinary shareholders using the value of economic capital and possibly attract prospective ordinary shareholders, locally and internationally. The banks under study are Absa, Capitec, FirstRand, Nedbank and Standard Bank over ten years, starting from June 2009 to May 2019 and in monthly frequency. The observations totalled 120 and two models that are under the Return Series Method were in used, namely; Historical Simulation Model and Variance Covariance Model. Both models, although they were small deviations in the value of economic capital, concluded that Standard Bank protects its existing ordinary shareholders the most, followed by FirstRand, then Absa and last is Nedbank. Capitec was the only bank, after one financial shock that could not protect its existing ordinary shareholders. Moreover, evidence in the study shows a trade-off between economic capital and return on investment in the case of Capitec and Standard Bank. Standard Bank had the highest value of economic capital and second-lowest return on investment, while Capitec had the highest return on investment and lowest value of economic capital. The significant policy implication of the research is that financial institution needs to strike a balance between protection and profits; thus, a way of protecting various stakeholders. Financial shocks have proven that regulatory measures are weak and they are is need for internal measures (economic capital) which indicate how financial institution can sustain in such cases.
- Full Text:
- Date Issued: 2020
- Authors: Chonzi, Tendai Day
- Date: 2020
- Subjects: Banks and banking -- Risk management -- South Africa , Financial services industry -- Risk management -- South Africa , ABSA Bank , FirstRand Limited , Nedbank , Standard Bank Limited , Capitec Bank (South Africa)
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/145807 , vital:38468
- Description: South Africans banking sector is one of the most dominating banking sectors in Africa. The banking sector is privately owned and involves a lot of different stakeholders, who risk losing their investments. One of the stakeholders who are the bottom of the repayment chain are existing ordinary shareholders because they risk losing all their investment in the result of bankruptcy, liquidity crises or the inability of the bank to repay their shareholders. Regulators in the banking sector only protect the depositor and the stability of the banking sector but not ordinary shareholders. An internal supervisory measure called economic capital has recently received more attention because of its aim to protect ordinary shareholders and thus, existing and prospective shareholders can use its value as a protective indicator. Economic theory assumes that the higher the value of economic capital (the lower the economic capital shortfall), the lower the return on investment for existing ordinary shareholders. The aforementioned shows a trade-off between protection (economic capital) and returns. Literature by Larsson (2009) further suggests that banks are always reluctant with implementing internal measures to protect themselves because of the good regulatory regime in the sector, some banks think that they are “too big to fail” and the fact that the reserve banks are always on the standby as a bailout. The purpose of this research is to examine which of the top five commercial banks in South African actively protect their existing ordinary shareholders using the value of economic capital and possibly attract prospective ordinary shareholders, locally and internationally. The banks under study are Absa, Capitec, FirstRand, Nedbank and Standard Bank over ten years, starting from June 2009 to May 2019 and in monthly frequency. The observations totalled 120 and two models that are under the Return Series Method were in used, namely; Historical Simulation Model and Variance Covariance Model. Both models, although they were small deviations in the value of economic capital, concluded that Standard Bank protects its existing ordinary shareholders the most, followed by FirstRand, then Absa and last is Nedbank. Capitec was the only bank, after one financial shock that could not protect its existing ordinary shareholders. Moreover, evidence in the study shows a trade-off between economic capital and return on investment in the case of Capitec and Standard Bank. Standard Bank had the highest value of economic capital and second-lowest return on investment, while Capitec had the highest return on investment and lowest value of economic capital. The significant policy implication of the research is that financial institution needs to strike a balance between protection and profits; thus, a way of protecting various stakeholders. Financial shocks have proven that regulatory measures are weak and they are is need for internal measures (economic capital) which indicate how financial institution can sustain in such cases.
- Full Text:
- Date Issued: 2020
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