An analysis of the long run comovements between financial system development and mining production in South Africa
- Authors: Ajagbe, Stephen Mayowa
- Date: 2011
- Subjects: Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:955 , http://hdl.handle.net/10962/d1002689 , Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Description: This study examines the nature of the relationship which exists between mining sector production and development of the financial systems in South Africa. This is particularly important in that the mining sector is considered to be one of the major contributors to the country’s overall economic growth. South Africa is also considered to have a very well developed financial system, to the point where the dominance of one over the other is difficult to identify. Therefore offering insight into the nature of this relationship will assist policy makers in identifying the most effective policies in order to ensure that the developments within the financial systems impact appropriately on the mining sector, and ultimately on the economy. In addition to using the conventional proxies of financial system development, this study utilises the principal component analysis (PCA) to construct an index for the entire financial system. The multivariate cointegration approach as proposed by Johansen (1988) and Johansen and Juselius (1990) was then used to estimate the relationship between the development of the financial systems and the mining sector production for the period 1988-2008. The study reveals mixed results for different measures of financial system development. Those involving the banking system show that a negative relationship exists between total mining production and total credit extended to the private sector, while liquid liabilities has a positive relationship. Similarly, with the stock market system, mixed results are also obtained which reveal a negative relationship between total mining production and stock market capitalisation, while a positive relationship is found with secondary market turnover. Of all the financial system variables, only that of stock market capitalisation was found to be significant. The result with the financial development index reveals that a significant negative relationship exists between financial system development and total mining sector production. Results on the other variables controlled in the estimation show that positive and significant relationships exist between total mining production and both nominal exchange rate and political stability respectively. Increased mining production therefore takes place in periods of appreciating exchange rates, and similarly in the post-apartheid era. On the other hand, negative relationships were found for both trade openness and inflation control variables. The impulse response and variance decomposition analyses showed that total mining production explains the largest amount of shocks within itself. Overall, the study reveals that the mining sector might not have benefited much from the development in the South African financial system.
- Full Text:
- Date Issued: 2011
- Authors: Ajagbe, Stephen Mayowa
- Date: 2011
- Subjects: Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:955 , http://hdl.handle.net/10962/d1002689 , Economic development -- South Africa , Econometric models , Mineral industries -- Economic aspects -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Principal components analysis , Cointegration , Stock exchanges -- South Africa , Banks and banking -- South Africa , Foreign exchange rates
- Description: This study examines the nature of the relationship which exists between mining sector production and development of the financial systems in South Africa. This is particularly important in that the mining sector is considered to be one of the major contributors to the country’s overall economic growth. South Africa is also considered to have a very well developed financial system, to the point where the dominance of one over the other is difficult to identify. Therefore offering insight into the nature of this relationship will assist policy makers in identifying the most effective policies in order to ensure that the developments within the financial systems impact appropriately on the mining sector, and ultimately on the economy. In addition to using the conventional proxies of financial system development, this study utilises the principal component analysis (PCA) to construct an index for the entire financial system. The multivariate cointegration approach as proposed by Johansen (1988) and Johansen and Juselius (1990) was then used to estimate the relationship between the development of the financial systems and the mining sector production for the period 1988-2008. The study reveals mixed results for different measures of financial system development. Those involving the banking system show that a negative relationship exists between total mining production and total credit extended to the private sector, while liquid liabilities has a positive relationship. Similarly, with the stock market system, mixed results are also obtained which reveal a negative relationship between total mining production and stock market capitalisation, while a positive relationship is found with secondary market turnover. Of all the financial system variables, only that of stock market capitalisation was found to be significant. The result with the financial development index reveals that a significant negative relationship exists between financial system development and total mining sector production. Results on the other variables controlled in the estimation show that positive and significant relationships exist between total mining production and both nominal exchange rate and political stability respectively. Increased mining production therefore takes place in periods of appreciating exchange rates, and similarly in the post-apartheid era. On the other hand, negative relationships were found for both trade openness and inflation control variables. The impulse response and variance decomposition analyses showed that total mining production explains the largest amount of shocks within itself. Overall, the study reveals that the mining sector might not have benefited much from the development in the South African financial system.
- Full Text:
- Date Issued: 2011
The impact of economic downturn on black economic empowerment and banks
- Authors: Daniels, Sinclair Lonwabo
- Date: 2010
- Subjects: South Africa -- Economic conditions -- 21st century , South Africa -- Economic conditions , Business enterprises, Black -- South Africa , Blacks -- Employment -- South Africa , Employee empowerment -- South Africa , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8620 , http://hdl.handle.net/10948/1505 , South Africa -- Economic conditions -- 21st century , South Africa -- Economic conditions , Business enterprises, Black -- South Africa , Blacks -- Employment -- South Africa , Employee empowerment -- South Africa , Banks and banking -- South Africa
- Description: The purpose of this treatise is to ascertain the impact of economic downturn on Black Economic Empowerment (BEE) and Banks. This has been sparked by the huge speculations in the market as to what will happen to BEE and how will the banks cope in general with the impact of this scourge. It is imperative to understand the influence of the 2008+ economic downturn on socio-economic reconstruction and development in South Africa and the black economic empowerment and its funding mechanisms. The treatise has two phases the, namely the theoretical phase and a bit of narrative phase. In the theoretical phase the research study interrogates what the literature review reveals about the economic downturn, BEE as well as performances of different banks across the world. This shows the economic impact that the banks have had to endure during the economic downturn. This resulted in stock markets losing their value. The dividend earners were significantly affected including a sizeable number of BEE companies. The BEE companies are perceived to be too reliant on debt on to finance their deals and this treatise will look at various options of financing a BEE deal and what is deem to the most suited financing structure. The narrative phase involves semi-structured interviews that were conducted in order to ascertain the real impact that South African were faced with and how they have managed to steer clear of the turbulent waters. This also looked at how the BEE consultant views the current occurrences in the market.
- Full Text:
- Date Issued: 2010
- Authors: Daniels, Sinclair Lonwabo
- Date: 2010
- Subjects: South Africa -- Economic conditions -- 21st century , South Africa -- Economic conditions , Business enterprises, Black -- South Africa , Blacks -- Employment -- South Africa , Employee empowerment -- South Africa , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8620 , http://hdl.handle.net/10948/1505 , South Africa -- Economic conditions -- 21st century , South Africa -- Economic conditions , Business enterprises, Black -- South Africa , Blacks -- Employment -- South Africa , Employee empowerment -- South Africa , Banks and banking -- South Africa
- Description: The purpose of this treatise is to ascertain the impact of economic downturn on Black Economic Empowerment (BEE) and Banks. This has been sparked by the huge speculations in the market as to what will happen to BEE and how will the banks cope in general with the impact of this scourge. It is imperative to understand the influence of the 2008+ economic downturn on socio-economic reconstruction and development in South Africa and the black economic empowerment and its funding mechanisms. The treatise has two phases the, namely the theoretical phase and a bit of narrative phase. In the theoretical phase the research study interrogates what the literature review reveals about the economic downturn, BEE as well as performances of different banks across the world. This shows the economic impact that the banks have had to endure during the economic downturn. This resulted in stock markets losing their value. The dividend earners were significantly affected including a sizeable number of BEE companies. The BEE companies are perceived to be too reliant on debt on to finance their deals and this treatise will look at various options of financing a BEE deal and what is deem to the most suited financing structure. The narrative phase involves semi-structured interviews that were conducted in order to ascertain the real impact that South African were faced with and how they have managed to steer clear of the turbulent waters. This also looked at how the BEE consultant views the current occurrences in the market.
- Full Text:
- Date Issued: 2010
The antecedents of customer satisfaction in a financial institution : a qualitative study
- Authors: Bleske, Adrian
- Date: 2008
- Subjects: Standard Bank Properties , Banks and banking -- South Africa , Banks and banking -- Customer services -- South Africa , Financial services industry -- South Africa , Bank management -- South Africa , Banks and banking -- Customer services -- Effect of marketing on
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:840 , http://hdl.handle.net/10962/d1015482
- Description: The following is a case study report on the Cape Town business unit of Standard Bank Properties. The research project falls within the ambit of services marketing which introduces several unique management challenges for service businesses that sell services as a core offering. The principal aim of the case study is to gain an understanding of why customers bank at the business unit and to discover what aspects are critical to customer satisfaction. A further goal of the research is to examine how the business unit could improve customer satisfaction and to highlight any impediments to further improving customer satisfaction at the business unit. It is generally regarded that quality customer service is essential to building customer relationships and hence the research project emphasis on services marketing and customer satisfaction within a financial services context. The paper commences with an overview of the South African Banking Sector and its unique challenges such as the Financial Service Charter and newly introduced legislation such as Financial Intelligence Centre Act. The case study will specifically investigate the property finance industry and a detailed analysis of the business unit's operations and process flow will also be undertaken. The reason for this background information is to assist the reader to understand how the business unit operates. The research project will investigate four unique differences between goods marketing and services marketing whereafter three theoretical propositions are introduced, namely the dyadic interaction and service encounter, the Service Profit Chain and finally Relationship Marketing. Evidence in the form of a narrative will be led from insights obtained from interviews conducted with customers and staff at the business unit against these propositions with support (or otherwise) from independent surveys and documents from the business unit. The result of this analysis is the identification of several areas of concern specifically: New employees and the service encounter, Problems with FICA, Lack of a customer complaint handling system, Empowerment issues, Turnaround times, Reliance on key staff These insights together with the evidence from the literature review will be analysed and several recommendations made to improve customer service and ultimately customer satisfaction at the business unit. Several recommendations for further research are offered as well as the identification of limitations including but not limited to the specificity of the case study report.
- Full Text:
- Date Issued: 2008
- Authors: Bleske, Adrian
- Date: 2008
- Subjects: Standard Bank Properties , Banks and banking -- South Africa , Banks and banking -- Customer services -- South Africa , Financial services industry -- South Africa , Bank management -- South Africa , Banks and banking -- Customer services -- Effect of marketing on
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:840 , http://hdl.handle.net/10962/d1015482
- Description: The following is a case study report on the Cape Town business unit of Standard Bank Properties. The research project falls within the ambit of services marketing which introduces several unique management challenges for service businesses that sell services as a core offering. The principal aim of the case study is to gain an understanding of why customers bank at the business unit and to discover what aspects are critical to customer satisfaction. A further goal of the research is to examine how the business unit could improve customer satisfaction and to highlight any impediments to further improving customer satisfaction at the business unit. It is generally regarded that quality customer service is essential to building customer relationships and hence the research project emphasis on services marketing and customer satisfaction within a financial services context. The paper commences with an overview of the South African Banking Sector and its unique challenges such as the Financial Service Charter and newly introduced legislation such as Financial Intelligence Centre Act. The case study will specifically investigate the property finance industry and a detailed analysis of the business unit's operations and process flow will also be undertaken. The reason for this background information is to assist the reader to understand how the business unit operates. The research project will investigate four unique differences between goods marketing and services marketing whereafter three theoretical propositions are introduced, namely the dyadic interaction and service encounter, the Service Profit Chain and finally Relationship Marketing. Evidence in the form of a narrative will be led from insights obtained from interviews conducted with customers and staff at the business unit against these propositions with support (or otherwise) from independent surveys and documents from the business unit. The result of this analysis is the identification of several areas of concern specifically: New employees and the service encounter, Problems with FICA, Lack of a customer complaint handling system, Empowerment issues, Turnaround times, Reliance on key staff These insights together with the evidence from the literature review will be analysed and several recommendations made to improve customer service and ultimately customer satisfaction at the business unit. Several recommendations for further research are offered as well as the identification of limitations including but not limited to the specificity of the case study report.
- Full Text:
- Date Issued: 2008
Bank credit extension to the private sector and inflation in South Africa
- Authors: Dlamini, Samuel Nkosinathi
- Date: 2009
- Subjects: Bank loans -- South Africa , Inflation (Finance) -- South Africa , Money supply -- South Africa , Interest rates -- South Africa , Banks and banking -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:959 , http://hdl.handle.net/10962/d1002693 , Bank loans -- South Africa , Inflation (Finance) -- South Africa , Money supply -- South Africa , Interest rates -- South Africa , Banks and banking -- South Africa , Foreign exchange rates -- South Africa
- Description: This study investigates the contribution of bank credit extension to the private sector to inflation in South Africa, covering the period 1970:1-2006:4. The long-run impact of bank credit on inflation is investigated by means of the Johansen co integration model. The short-run ynamics of the inflation is subsequently modelled by means of the Vector Error Correction Model (VECM). Using the Johansen methodology, the study identifies two co integrating equations linking inflation and its eterminants. The results suggest that the long-run relationship between inflation and bank credit to the private sector is negative and statistically significant at 10% level. The determinants that are significant at 5% level are: money supply, real gross domestic product, the money market rate, rand/dollar exchange rate and imports. The results are consistent with previous findings. The speed of adjustment in response to deviation from the equilibrium path was found to be negative at 10.56% per quarter, which is consistent with findings by Ohnsorge and Oomes (2003) for Russia. Both the signs and the magnitude of the coefficients suggest that the co integrating vector describes a long-run inflation equation. The impulse response functions confirm the theoretical expectations except for the import prices. The most persistent and significant shocks observed are on impulse response functions of money supply and bank credit to the private sector. The variance decomposition results also suggest that inflation responds quicker to innovations from money supply and the money market rate. The overall results provide evidence that the surge in inflation is associated with an increase in money supply as well as the instability in exchange rate. The effects of exchange rate fluctuation on inflation are reflected through changes in import prices. Based on the results we conclude that an increase in bank credit during the period 1970:1-2006:4 had a negative mpact on inflation in South Africa.
- Full Text:
- Date Issued: 2009
- Authors: Dlamini, Samuel Nkosinathi
- Date: 2009
- Subjects: Bank loans -- South Africa , Inflation (Finance) -- South Africa , Money supply -- South Africa , Interest rates -- South Africa , Banks and banking -- South Africa , Foreign exchange rates -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:959 , http://hdl.handle.net/10962/d1002693 , Bank loans -- South Africa , Inflation (Finance) -- South Africa , Money supply -- South Africa , Interest rates -- South Africa , Banks and banking -- South Africa , Foreign exchange rates -- South Africa
- Description: This study investigates the contribution of bank credit extension to the private sector to inflation in South Africa, covering the period 1970:1-2006:4. The long-run impact of bank credit on inflation is investigated by means of the Johansen co integration model. The short-run ynamics of the inflation is subsequently modelled by means of the Vector Error Correction Model (VECM). Using the Johansen methodology, the study identifies two co integrating equations linking inflation and its eterminants. The results suggest that the long-run relationship between inflation and bank credit to the private sector is negative and statistically significant at 10% level. The determinants that are significant at 5% level are: money supply, real gross domestic product, the money market rate, rand/dollar exchange rate and imports. The results are consistent with previous findings. The speed of adjustment in response to deviation from the equilibrium path was found to be negative at 10.56% per quarter, which is consistent with findings by Ohnsorge and Oomes (2003) for Russia. Both the signs and the magnitude of the coefficients suggest that the co integrating vector describes a long-run inflation equation. The impulse response functions confirm the theoretical expectations except for the import prices. The most persistent and significant shocks observed are on impulse response functions of money supply and bank credit to the private sector. The variance decomposition results also suggest that inflation responds quicker to innovations from money supply and the money market rate. The overall results provide evidence that the surge in inflation is associated with an increase in money supply as well as the instability in exchange rate. The effects of exchange rate fluctuation on inflation are reflected through changes in import prices. Based on the results we conclude that an increase in bank credit during the period 1970:1-2006:4 had a negative mpact on inflation in South Africa.
- Full Text:
- Date Issued: 2009
Monetary policy transmission in South Africa: the prime rate-demand for credit phase
- Authors: Lehobo, Limakatso
- Date: 2006
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Bank loans -- South Africa , Financial institutions -- South Africa , Finance -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1128 , http://hdl.handle.net/10962/d1020850
- Description: A voluminous literature attempts to explain the various channels of the monetary policy transmission mechanism through which central banks ultimately achieve price stability. However, most research focuses on interest rate pass-through and the demand for money phase, while there is limited research on the demand for credit. This study endeavours to contribute to the understanding of this neglected phase of monetary policy transmission by exploring the response of the real demand for bank credit by the private sector to changes in the real prime rate from 1990:1 to 2004:4 in South Africa. Firstly, the behaviour of the real prime rate in relation to the repo rate is explored using graphical analysis. The study observes that an increase in the repo rate causes an increase in the real prime rate, such that there is always a margin of three or four percentage points between the two rates. Secondly, using secondary data, the Johansen methodology is used to determine the relationship between the demand for bank credit and its determinants (GDP, inflation, real prime rate and real yield on government bonds). Two co-integrating relationships are found. The Gaussian errors from one co-integrating vector are used to model the Vector Error Correction Model, which provides the short-run dynamics and the long-run results, through the use of Eviews 5 software. The results of the study show that while all other variables are negatively related to the demand for bank credit in the long-run, GDP has a positive influence. In the short-run, yield on government bonds and inflation coefficients depict a positive association, while the coefficients of real prime rate and GDP are negative. The error correction coefficient is -0.32, which implies that a 32% adjustment to equilibrium happens in the demand for bank credit in a quarter and that the complete adjustment takes about three quarters to complete. Thirdly, the generalised impulse responses results indicate that the impact on the real prime rate affects the demand for bank credit from the first quarter. The study concludes that the real prime rate has a negative impact on the demand for credit both in the short-run and long-run.
- Full Text:
- Date Issued: 2006
- Authors: Lehobo, Limakatso
- Date: 2006
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Bank loans -- South Africa , Financial institutions -- South Africa , Finance -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1128 , http://hdl.handle.net/10962/d1020850
- Description: A voluminous literature attempts to explain the various channels of the monetary policy transmission mechanism through which central banks ultimately achieve price stability. However, most research focuses on interest rate pass-through and the demand for money phase, while there is limited research on the demand for credit. This study endeavours to contribute to the understanding of this neglected phase of monetary policy transmission by exploring the response of the real demand for bank credit by the private sector to changes in the real prime rate from 1990:1 to 2004:4 in South Africa. Firstly, the behaviour of the real prime rate in relation to the repo rate is explored using graphical analysis. The study observes that an increase in the repo rate causes an increase in the real prime rate, such that there is always a margin of three or four percentage points between the two rates. Secondly, using secondary data, the Johansen methodology is used to determine the relationship between the demand for bank credit and its determinants (GDP, inflation, real prime rate and real yield on government bonds). Two co-integrating relationships are found. The Gaussian errors from one co-integrating vector are used to model the Vector Error Correction Model, which provides the short-run dynamics and the long-run results, through the use of Eviews 5 software. The results of the study show that while all other variables are negatively related to the demand for bank credit in the long-run, GDP has a positive influence. In the short-run, yield on government bonds and inflation coefficients depict a positive association, while the coefficients of real prime rate and GDP are negative. The error correction coefficient is -0.32, which implies that a 32% adjustment to equilibrium happens in the demand for bank credit in a quarter and that the complete adjustment takes about three quarters to complete. Thirdly, the generalised impulse responses results indicate that the impact on the real prime rate affects the demand for bank credit from the first quarter. The study concludes that the real prime rate has a negative impact on the demand for credit both in the short-run and long-run.
- Full Text:
- Date Issued: 2006
A study exploring the relationship between employee happiness and financial performance within a South African financial institution
- Authors: Waugh, Geoffrey William
- Date: 2014
- Subjects: Financial institutions -- South Africa , Employee motivation , Financial institutions -- Ratings and rankings , Banks and banking -- South Africa , Bank employees -- South Africa , Job satisfaction
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:827 , http://hdl.handle.net/10962/d1012080
- Description: This research is an investigation of the relationship between employees 'happiness' and the financial performance of a financial services organisation in South Africa. As a component of the financial services industry the banking sector contributes greatly to the economic growth of the country. The South African Banking sector is concentrated and highly competitive. It is vital for banks to maintain competitiveness and ever increasing global competition adds further pressure on organisations to financially perform so as to meet the demands of their shareholders. The literature that has been reviewed and previous research suggest that employee 'happiness' is a vital variable influencing the performance and success of individuals. Organisational performance will be measured in terms of financial performance for the purposes of this research. The concept of financial performance and 'happiness' are discussed and a questionnaire based on the Satisfaction With Life Scale (Diener et al,1985) is used to determine the levels of 'happiness' at selected branches within the institution. The individual branches financial performance is determined via calculating selected ratios, namely cumulative leverage, cost to income ratio and net yield. An analysis of correlation was conducted to establish whether or not a relationship of statistical significance exists between employee 'happiness' and financial performance. It was concluded that there is no relationship of statistical significance between employee 'happiness' and the financial performance of branches within the organisation, it was suggested that other factors exert a much greater influence over financial performance. Some of these factors influencing financial performance are discussed and recommendations for further research are made.
- Full Text:
- Date Issued: 2014
- Authors: Waugh, Geoffrey William
- Date: 2014
- Subjects: Financial institutions -- South Africa , Employee motivation , Financial institutions -- Ratings and rankings , Banks and banking -- South Africa , Bank employees -- South Africa , Job satisfaction
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:827 , http://hdl.handle.net/10962/d1012080
- Description: This research is an investigation of the relationship between employees 'happiness' and the financial performance of a financial services organisation in South Africa. As a component of the financial services industry the banking sector contributes greatly to the economic growth of the country. The South African Banking sector is concentrated and highly competitive. It is vital for banks to maintain competitiveness and ever increasing global competition adds further pressure on organisations to financially perform so as to meet the demands of their shareholders. The literature that has been reviewed and previous research suggest that employee 'happiness' is a vital variable influencing the performance and success of individuals. Organisational performance will be measured in terms of financial performance for the purposes of this research. The concept of financial performance and 'happiness' are discussed and a questionnaire based on the Satisfaction With Life Scale (Diener et al,1985) is used to determine the levels of 'happiness' at selected branches within the institution. The individual branches financial performance is determined via calculating selected ratios, namely cumulative leverage, cost to income ratio and net yield. An analysis of correlation was conducted to establish whether or not a relationship of statistical significance exists between employee 'happiness' and financial performance. It was concluded that there is no relationship of statistical significance between employee 'happiness' and the financial performance of branches within the organisation, it was suggested that other factors exert a much greater influence over financial performance. Some of these factors influencing financial performance are discussed and recommendations for further research are made.
- Full Text:
- Date Issued: 2014
Monetary policy transmission in South Africa: a comparative analysis of credit and exchange rate channels
- Authors: Sebitso, Nathaniel Maemu
- Date: 2011
- Subjects: Monetary policy -- South Africa , Foreign exchange market -- South Africa , Financial crises -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1129 , http://hdl.handle.net/10962/d1020851
- Description: This thesis focuses on monetary policy transmission and particularly seeks to examine the impact of credit and exchange rate channels of monetary policy transmission in the South African economy. South Africa's monetary policy has gone through several changes over the past thirty years. In this respect, there is a need for robust empirical evidence on the effects of these channels on inflation and output. The thesis employs a structural vector autoregressive (SVAR) model to identify monetary transmission in South Africa for the period 1994:q4 - 2008:q2. The form of the SVAR used in this thesis is based on the fact that South Africa is a small open economy, which means that external shocks are an important driver of domestic activity. The impulse responses and variance decomposition results show that the repo rate, credit and exchange rate play a role in terms of their impact on inflation and output. The dynamic responses to the identified monetary policy shock are consistent with standard theory and highlight the importance of the interest rate channel. A shock to the interest rate, increasing it by one standard deviation, results in a persistent fall in credit. The response of output is immediate as it falls and bottoms out within the second year. Inflation shows a lagged response, it is positive within the first year as the exchange rate depreciates but in subsequent quarters inflation responds negatively as expected. Inflation falls and reaches a minimum by approximately eight quarters then moves towards baseline. The exchange rate shows delayed appreciation. The shock to the repo interest rate leads to an immediate depreciation of the exchange rate in the first two quarters as output declines, followed by an appreciation in the third and sixth quarter. Due to larger error bounds the impact of the repo rate on the exchange rate could be less effective within the first two years. The impulse responses suggest that monetary policy plays an effective role in stabilising the economy in response to a credit shock, notwithstanding large standard error bounds. Hence, the monetary authority reacts by increasing the repo rate as a result of inflation. The impact of credit on output is positive but is offset to some extent by the rising repo rate. In response to the rand appreciation, the monetary authority reduces the repo rate significantly during the first year with the maximum impact in the second year and then returns to baseline thereafter. Therefore the monetary authority reduces the repo rate, probably to stabilise falling inflation. The result shows that inflation falls as a result of the rand appreciation. A shock to the exchange rate causes a rise in output, though small in magnitude, which is persistent but reaches baseline at the end of the period. This result could reflect the effects of the resultant fall in the repo rate and a persistent rise in credit over the whole period, which tends to increase output. The exchange rate shows an obvious and stronger immediate impact on inflation compared to credit impact on inflation. However, the credit shock has an obvious and stronger impact on output compared to an exchange rate impact on output. However, the large standard error bounds may imply that credit and exchange rate channels are not as effective in the short run. It is important to note that the results are based on the SVAR model estimated with percentage growth rate of the variables. The variance decomposition result is in line with the impulse responses and shows that the exchange rate and credit channels could be important transmission channels in South Africa over the chosen sample period. The exchange rate and credit shocks show a stronger effect on inflation than on output, looking at both the impulse responses and variance decomposition results. The reaction of the repo interest rate to the credit and exchange rate shocks comes out as expected. The repo rate increases as a result of an increase in the credit and falls as a result of the currency appreciation.
- Full Text:
- Date Issued: 2011
- Authors: Sebitso, Nathaniel Maemu
- Date: 2011
- Subjects: Monetary policy -- South Africa , Foreign exchange market -- South Africa , Financial crises -- South Africa , South Africa -- Economic conditions , South Africa -- Economic policy , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1129 , http://hdl.handle.net/10962/d1020851
- Description: This thesis focuses on monetary policy transmission and particularly seeks to examine the impact of credit and exchange rate channels of monetary policy transmission in the South African economy. South Africa's monetary policy has gone through several changes over the past thirty years. In this respect, there is a need for robust empirical evidence on the effects of these channels on inflation and output. The thesis employs a structural vector autoregressive (SVAR) model to identify monetary transmission in South Africa for the period 1994:q4 - 2008:q2. The form of the SVAR used in this thesis is based on the fact that South Africa is a small open economy, which means that external shocks are an important driver of domestic activity. The impulse responses and variance decomposition results show that the repo rate, credit and exchange rate play a role in terms of their impact on inflation and output. The dynamic responses to the identified monetary policy shock are consistent with standard theory and highlight the importance of the interest rate channel. A shock to the interest rate, increasing it by one standard deviation, results in a persistent fall in credit. The response of output is immediate as it falls and bottoms out within the second year. Inflation shows a lagged response, it is positive within the first year as the exchange rate depreciates but in subsequent quarters inflation responds negatively as expected. Inflation falls and reaches a minimum by approximately eight quarters then moves towards baseline. The exchange rate shows delayed appreciation. The shock to the repo interest rate leads to an immediate depreciation of the exchange rate in the first two quarters as output declines, followed by an appreciation in the third and sixth quarter. Due to larger error bounds the impact of the repo rate on the exchange rate could be less effective within the first two years. The impulse responses suggest that monetary policy plays an effective role in stabilising the economy in response to a credit shock, notwithstanding large standard error bounds. Hence, the monetary authority reacts by increasing the repo rate as a result of inflation. The impact of credit on output is positive but is offset to some extent by the rising repo rate. In response to the rand appreciation, the monetary authority reduces the repo rate significantly during the first year with the maximum impact in the second year and then returns to baseline thereafter. Therefore the monetary authority reduces the repo rate, probably to stabilise falling inflation. The result shows that inflation falls as a result of the rand appreciation. A shock to the exchange rate causes a rise in output, though small in magnitude, which is persistent but reaches baseline at the end of the period. This result could reflect the effects of the resultant fall in the repo rate and a persistent rise in credit over the whole period, which tends to increase output. The exchange rate shows an obvious and stronger immediate impact on inflation compared to credit impact on inflation. However, the credit shock has an obvious and stronger impact on output compared to an exchange rate impact on output. However, the large standard error bounds may imply that credit and exchange rate channels are not as effective in the short run. It is important to note that the results are based on the SVAR model estimated with percentage growth rate of the variables. The variance decomposition result is in line with the impulse responses and shows that the exchange rate and credit channels could be important transmission channels in South Africa over the chosen sample period. The exchange rate and credit shocks show a stronger effect on inflation than on output, looking at both the impulse responses and variance decomposition results. The reaction of the repo interest rate to the credit and exchange rate shocks comes out as expected. The repo rate increases as a result of an increase in the credit and falls as a result of the currency appreciation.
- Full Text:
- Date Issued: 2011
Risk management
- Authors: Derrocks, Velda Charmaine
- Date: 2010
- Subjects: Risk management -- South Africa , Banks and banking -- South Africa , Financial risk management -- South Africa , Risk management -- South Africa -- Decision making
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:8633 , http://hdl.handle.net/10948/1480 , Risk management -- South Africa , Banks and banking -- South Africa , Financial risk management -- South Africa , Risk management -- South Africa -- Decision making
- Description: The objective of the study is to establish a perspective of risk management by doing an assessment of current risk management practices, especially in the aftermath of the 2008/2009 global financial crisis. Risk management, as a component of corporate governance, was analysed by addressing the following: - The nature of value-creating assets in business; - The primary challenges for risk management over the next three years; - The changing approaches towards risk management; - The role of legislation and external stakeholders; - The role of risk management in strategic planning; - The cost of risk management; and - The benefits of improved risk management capabilities. A survey was conducted in the form of a questionnaire in order to obtain primary information from business owners on the current role of risk management in their organisations as well as their view on the role of risk management going forward. Businesses operating in the Port Elizabeth and surrounding area with an existing relationship with Absa Business Banking Services participated in the study. Quantitative techniques were used to analyse the data that were obtained from the sample group. The study revealed that the role of risk management in enterprises is evolving into an integrated, enterprise wide risk management function that can be utilised as a source of competitive advantage, from both a funding perspective for Banks and a business perspective for business owners. Capitalising on risk management as a competitive advantage will ultimately lead to long term sustainability and profitability of South African business enterprises and the South African Banking system.
- Full Text:
- Date Issued: 2010
- Authors: Derrocks, Velda Charmaine
- Date: 2010
- Subjects: Risk management -- South Africa , Banks and banking -- South Africa , Financial risk management -- South Africa , Risk management -- South Africa -- Decision making
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:8633 , http://hdl.handle.net/10948/1480 , Risk management -- South Africa , Banks and banking -- South Africa , Financial risk management -- South Africa , Risk management -- South Africa -- Decision making
- Description: The objective of the study is to establish a perspective of risk management by doing an assessment of current risk management practices, especially in the aftermath of the 2008/2009 global financial crisis. Risk management, as a component of corporate governance, was analysed by addressing the following: - The nature of value-creating assets in business; - The primary challenges for risk management over the next three years; - The changing approaches towards risk management; - The role of legislation and external stakeholders; - The role of risk management in strategic planning; - The cost of risk management; and - The benefits of improved risk management capabilities. A survey was conducted in the form of a questionnaire in order to obtain primary information from business owners on the current role of risk management in their organisations as well as their view on the role of risk management going forward. Businesses operating in the Port Elizabeth and surrounding area with an existing relationship with Absa Business Banking Services participated in the study. Quantitative techniques were used to analyse the data that were obtained from the sample group. The study revealed that the role of risk management in enterprises is evolving into an integrated, enterprise wide risk management function that can be utilised as a source of competitive advantage, from both a funding perspective for Banks and a business perspective for business owners. Capitalising on risk management as a competitive advantage will ultimately lead to long term sustainability and profitability of South African business enterprises and the South African Banking system.
- Full Text:
- Date Issued: 2010
The role of bank finance in small firm growth : a case study
- Authors: Musengi, Sandra
- Date: 2003
- Subjects: Banks and banking -- South Africa , Finance -- South Africa , Small business -- South Africa -- Finance , Small business -- South Africa -- Growth -- Case studies , Entrepreneurship -- South Africa , New business enterprises -- South Africa , Bank loans -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1176 , http://hdl.handle.net/10962/d1002793 , Banks and banking -- South Africa , Finance -- South Africa , Small business -- South Africa -- Finance , Small business -- South Africa -- Growth -- Case studies , Entrepreneurship -- South Africa , New business enterprises -- South Africa , Bank loans -- South Africa
- Description: The debate concerning small firm access to finance continues. The proliferation of research of the issue underlines the importance attached in promoting a strong entrepreneurial culture within a country. Small firms are significant to economic growth if they are growing. Central to this significance is ascertaining the role of finance and in particular bank finance in accelerating small growth potential. The case study, through its ontological, epistemological and methodological position, draws on a document review and interview material from small firm owners and key informants to explore the role of bank finance in small firm growth. Case study evidence reveals that small firm owners do not intend to finance firm growth with bank finance but prefer to finance growth with internally generated funds. The owners indicate that non-financial and behavioural factors, such as, maintaining decision-making control, experience accessing bank finance, the perception of the banking relationship and growth aspirations of owners may be more important in dertermining the finance structure for firm growth. From the bank's perspective, findings suggest that risk assessment, financial viability of the enterprise and provision of collateral are more important in the lending decisions; findings supported by an analysis of selected documents. The small sample of small firm owners, bank representatives, experts and documents makes it difficult to generalize the findings. However, the findings are significant because exploring the issue from different perspectives presents invaluable insights, which can be investigated further to assist small firm owners, to develop finance products geared for small firm operations, and in the development of the knowledge base on finance-related issues in the South African context.
- Full Text:
- Date Issued: 2003
- Authors: Musengi, Sandra
- Date: 2003
- Subjects: Banks and banking -- South Africa , Finance -- South Africa , Small business -- South Africa -- Finance , Small business -- South Africa -- Growth -- Case studies , Entrepreneurship -- South Africa , New business enterprises -- South Africa , Bank loans -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1176 , http://hdl.handle.net/10962/d1002793 , Banks and banking -- South Africa , Finance -- South Africa , Small business -- South Africa -- Finance , Small business -- South Africa -- Growth -- Case studies , Entrepreneurship -- South Africa , New business enterprises -- South Africa , Bank loans -- South Africa
- Description: The debate concerning small firm access to finance continues. The proliferation of research of the issue underlines the importance attached in promoting a strong entrepreneurial culture within a country. Small firms are significant to economic growth if they are growing. Central to this significance is ascertaining the role of finance and in particular bank finance in accelerating small growth potential. The case study, through its ontological, epistemological and methodological position, draws on a document review and interview material from small firm owners and key informants to explore the role of bank finance in small firm growth. Case study evidence reveals that small firm owners do not intend to finance firm growth with bank finance but prefer to finance growth with internally generated funds. The owners indicate that non-financial and behavioural factors, such as, maintaining decision-making control, experience accessing bank finance, the perception of the banking relationship and growth aspirations of owners may be more important in dertermining the finance structure for firm growth. From the bank's perspective, findings suggest that risk assessment, financial viability of the enterprise and provision of collateral are more important in the lending decisions; findings supported by an analysis of selected documents. The small sample of small firm owners, bank representatives, experts and documents makes it difficult to generalize the findings. However, the findings are significant because exploring the issue from different perspectives presents invaluable insights, which can be investigated further to assist small firm owners, to develop finance products geared for small firm operations, and in the development of the knowledge base on finance-related issues in the South African context.
- Full Text:
- Date Issued: 2003
Investigation into the provision of service excellence in a selected bank in the Port Elizabeth metropole
- Authors: Keet, Marius
- Date: 2000
- Subjects: Banks and banking -- South Africa , Bank management , Consumer satisfaction , Quality assurance -- Management
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10838 , http://hdl.handle.net/10948/31 , Banks and banking -- South Africa , Bank management , Consumer satisfaction , Quality assurance -- Management
- Description: In this research customer service excellence in First National Bank in the Port Elizabeth metropole was investigated. From the industry and competitor analysis it can be concluded that banking is a highly competitive industry that is undergoing constant change because of fierce competition. The literature survey was aimed at placing the concept of service quality, excellence and customer loyalty which lead to customer retention into perspective. The concept of total quality management outlining the specific requirements of how the concept can be utilised and how a service quality programme can be implemented was discussed. The purpose of the empirical study was to test customers’ perceptions of service provided by First National Bank and to contribute with useful information to the bank studied. From these findings improvements and recommendations were suggested as a guideline for any bank to follow to improve customer service levels. The empirical study results were satisfactory and informative. The meaningful positive responses that were identified can be utilised as competitive marketing strategies by FNB. The meaningful negative concerns the bank should consider improving upon and attention should be given to the language and SBU differences outlined.
- Full Text:
- Date Issued: 2000
- Authors: Keet, Marius
- Date: 2000
- Subjects: Banks and banking -- South Africa , Bank management , Consumer satisfaction , Quality assurance -- Management
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10838 , http://hdl.handle.net/10948/31 , Banks and banking -- South Africa , Bank management , Consumer satisfaction , Quality assurance -- Management
- Description: In this research customer service excellence in First National Bank in the Port Elizabeth metropole was investigated. From the industry and competitor analysis it can be concluded that banking is a highly competitive industry that is undergoing constant change because of fierce competition. The literature survey was aimed at placing the concept of service quality, excellence and customer loyalty which lead to customer retention into perspective. The concept of total quality management outlining the specific requirements of how the concept can be utilised and how a service quality programme can be implemented was discussed. The purpose of the empirical study was to test customers’ perceptions of service provided by First National Bank and to contribute with useful information to the bank studied. From these findings improvements and recommendations were suggested as a guideline for any bank to follow to improve customer service levels. The empirical study results were satisfactory and informative. The meaningful positive responses that were identified can be utilised as competitive marketing strategies by FNB. The meaningful negative concerns the bank should consider improving upon and attention should be given to the language and SBU differences outlined.
- Full Text:
- Date Issued: 2000
Development of the South African monetary banking sector and money market
- Authors: Patel, Aadil Suleman
- Date: 2005
- Subjects: South African Reserve Bank , Banks and banking -- South Africa , Money market -- South Africa , Economic development -- South Africa , Monetary policy -- South Africa , South Africa -- Economic conditions , Financial institutions -- South Africa , Money -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:997 , http://hdl.handle.net/10962/d1002732 , South African Reserve Bank , Banks and banking -- South Africa , Money market -- South Africa , Economic development -- South Africa , Monetary policy -- South Africa , South Africa -- Economic conditions , Financial institutions -- South Africa , Money -- South Africa
- Description: This thesis presents a theoretical analysis of developments in the South African monetary banking sector and money market. In the first section, evolution of the political, social and economic environments over the past few decades are discussed to provide the reader with an idea of some factors responsible for the underdeveloped nature of this market. It has been argued that the domestic political and economic landscape is relatively stable. Nevertheless, factors such as Zimbabwe’s political and ensuing economic turmoil, coupled with numerous financial crises in other developing nations have had negative consequences on domestic financial market development and economic growth. The current state of monetary policy is also analysed, within the economic environment, and various policy considerations have been put forth concerning the inflation targeting policy. The thesis then goes on to scrutinise the statutory and institutional environments within which the monetary banking institutions operate. Recent changes in the regulations governing the operations of these institutions are identified, together with the consequences of such laws on banking institutions and possible amendments have been suggested. In particular, a system of Asset Based Reserve Requirements (ABRR) has been recommended, in place of the current cash reserve requirement, to ensure regulators create a level playing field in the financial sector. The system can also provide authorities with the necessary control required to direct funds to the most desirable sectors of the economy. Development of the interbank market and the effect of reduced banking competition on the efficacy of the South African Reserve Bank’s refinancing operations and inflation targeting policy are also considered. Finally, the thesis analyses some effects of financial development on the South African economy, and whether it is in the best interests of the country to pursue financial reforms with such vigour. While financial development may bring South Africa closer to international standards of best practice, the timing and extent of the reforms will be critical to guarantee success.
- Full Text:
- Date Issued: 2005
- Authors: Patel, Aadil Suleman
- Date: 2005
- Subjects: South African Reserve Bank , Banks and banking -- South Africa , Money market -- South Africa , Economic development -- South Africa , Monetary policy -- South Africa , South Africa -- Economic conditions , Financial institutions -- South Africa , Money -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:997 , http://hdl.handle.net/10962/d1002732 , South African Reserve Bank , Banks and banking -- South Africa , Money market -- South Africa , Economic development -- South Africa , Monetary policy -- South Africa , South Africa -- Economic conditions , Financial institutions -- South Africa , Money -- South Africa
- Description: This thesis presents a theoretical analysis of developments in the South African monetary banking sector and money market. In the first section, evolution of the political, social and economic environments over the past few decades are discussed to provide the reader with an idea of some factors responsible for the underdeveloped nature of this market. It has been argued that the domestic political and economic landscape is relatively stable. Nevertheless, factors such as Zimbabwe’s political and ensuing economic turmoil, coupled with numerous financial crises in other developing nations have had negative consequences on domestic financial market development and economic growth. The current state of monetary policy is also analysed, within the economic environment, and various policy considerations have been put forth concerning the inflation targeting policy. The thesis then goes on to scrutinise the statutory and institutional environments within which the monetary banking institutions operate. Recent changes in the regulations governing the operations of these institutions are identified, together with the consequences of such laws on banking institutions and possible amendments have been suggested. In particular, a system of Asset Based Reserve Requirements (ABRR) has been recommended, in place of the current cash reserve requirement, to ensure regulators create a level playing field in the financial sector. The system can also provide authorities with the necessary control required to direct funds to the most desirable sectors of the economy. Development of the interbank market and the effect of reduced banking competition on the efficacy of the South African Reserve Bank’s refinancing operations and inflation targeting policy are also considered. Finally, the thesis analyses some effects of financial development on the South African economy, and whether it is in the best interests of the country to pursue financial reforms with such vigour. While financial development may bring South Africa closer to international standards of best practice, the timing and extent of the reforms will be critical to guarantee success.
- Full Text:
- Date Issued: 2005
Interest rate behaviour in a more transparent South African monetary policy environment
- Authors: Ballim, Goolam Hoosen
- Date: 2005
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Interest rates -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1034 , http://hdl.handle.net/10962/d1004462 , South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Interest rates -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: South Africa introduced inflation targeting as a monetary policy framework in 2000. This marked a sizable shift in monetary policy management from the previous "eclectic" approach and the explicit focus on M3 money supply before that. The study appraises the effectiveness of monetary policy under this new dispensation. However, the analysis does not centre on inflation outcomes, which can be a measure of effectiveness because they are the overriding objective of the South African Reserve Bank in effect, it is possible to have a target-friendly inflation rate for a length of time despite monetary policy that is ambiguous and encourages unpredictability in market interest rates. However, persistent policy opaqueness can, over time, damage a favourable inflation scenario. For instance, if the public is unsure about the Reserve Bank's desired inflation target, price setting in the wage and goods markets may eventually produce an inflation outcome that is higher than the Bank may have intended. Rather, this study adjudicates the effectiveness of monetary policy within the context of policy transparency, which is an intrinsic part of the inflation targeting framework. The study looks at the extent to which monetary policy transparency has enhanced both the anticipatory nature of the market's response to policy actions and the force that policy has on all interest rates in the financial system, particularly long-term rates. These concepts are important because through the transmission mechanism of monetary policy, the more deft market participants are at anticipating future Reserve Bank policy the greater the Bank's ability to steady the economy before the actual policy event. With the aid of regression models to estimate the response of market rates to policy changes, the results show that there is significant movement in market rates in anticipation of policy action, rather than on the day of the event or the day after. Indeed, the estimates for market rates movement on the day of and even the day after the policy action are generally minute. For instance, the R157 long-term government bond yield changes by a significant 41 basis points in response to a one percentage point change in the Reserve Bank's benchmark repo rate in the period between the last policy action and the day preceding the current action. In contrast, the R157 bond yield changes by an insignificant 2 basis points on the day of the current repo rate change and about 1 basis point the day after the current change. The results point to a robust relationship between policy transparency and the market's ability to foresee rate action. If this were not the case, it is likely that there would be persistent market surprise and, hence, noticeable movement in interest rates on the day of the rate action and perhaps even the day after. Another important observation is that monetary policy impacts significantly on both short- and long-term market rates. Again, certifying the robustness of monetary policy under the inflation targeting regime
- Full Text:
- Date Issued: 2005
- Authors: Ballim, Goolam Hoosen
- Date: 2005
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Interest rates -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1034 , http://hdl.handle.net/10962/d1004462 , South African Reserve Bank , Monetary policy -- South Africa , Banks and banking -- South Africa , Interest rates -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: South Africa introduced inflation targeting as a monetary policy framework in 2000. This marked a sizable shift in monetary policy management from the previous "eclectic" approach and the explicit focus on M3 money supply before that. The study appraises the effectiveness of monetary policy under this new dispensation. However, the analysis does not centre on inflation outcomes, which can be a measure of effectiveness because they are the overriding objective of the South African Reserve Bank in effect, it is possible to have a target-friendly inflation rate for a length of time despite monetary policy that is ambiguous and encourages unpredictability in market interest rates. However, persistent policy opaqueness can, over time, damage a favourable inflation scenario. For instance, if the public is unsure about the Reserve Bank's desired inflation target, price setting in the wage and goods markets may eventually produce an inflation outcome that is higher than the Bank may have intended. Rather, this study adjudicates the effectiveness of monetary policy within the context of policy transparency, which is an intrinsic part of the inflation targeting framework. The study looks at the extent to which monetary policy transparency has enhanced both the anticipatory nature of the market's response to policy actions and the force that policy has on all interest rates in the financial system, particularly long-term rates. These concepts are important because through the transmission mechanism of monetary policy, the more deft market participants are at anticipating future Reserve Bank policy the greater the Bank's ability to steady the economy before the actual policy event. With the aid of regression models to estimate the response of market rates to policy changes, the results show that there is significant movement in market rates in anticipation of policy action, rather than on the day of the event or the day after. Indeed, the estimates for market rates movement on the day of and even the day after the policy action are generally minute. For instance, the R157 long-term government bond yield changes by a significant 41 basis points in response to a one percentage point change in the Reserve Bank's benchmark repo rate in the period between the last policy action and the day preceding the current action. In contrast, the R157 bond yield changes by an insignificant 2 basis points on the day of the current repo rate change and about 1 basis point the day after the current change. The results point to a robust relationship between policy transparency and the market's ability to foresee rate action. If this were not the case, it is likely that there would be persistent market surprise and, hence, noticeable movement in interest rates on the day of the rate action and perhaps even the day after. Another important observation is that monetary policy impacts significantly on both short- and long-term market rates. Again, certifying the robustness of monetary policy under the inflation targeting regime
- Full Text:
- Date Issued: 2005
The influence of customer relationship management on the service quality of banks
- Authors: Rootman, Chantal
- Date: 2006
- Subjects: Customer relations -- South Africa , Banks and banking -- South Africa , Quality control
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8980 , http://hdl.handle.net/10948/400 , Customer relations -- South Africa , Banks and banking -- South Africa , Quality control
- Description: Despite the extensive research undertaken in the subject area of services marketing, much is still unknown to service providers of specific services in terms of service delivery concepts. This study attempts to address this limitation. The study revolves around the customer relationship management and service quality of banks. Service firms, including banks, are vitally important to the economy of any country, as they contribute to its Gross Domestic Product (GDP) and employment rate. However, to survive in a complex, competitive business environment, service firms are required to focus on their clients’ needs. Specifically, banks can focus on their relationships with clients and levels of service quality. In order to establish the influence of selected variables on the customer relationship management (CRM) of banks and the influence of CRM on the service quality of banks, an empirical investigation was conducted. The aim of this study was to quantify significant relationships among selected variables; therefore the positivistic research paradigm was used. The sample consisted of banking clients in the Nelson Mandela Metropolitan area. The sample size was 290, with a response rate of 91.03%. The empirical investigation revealed that significant positive relationships exist between both the knowledgeability, and attitude, of bank employees and a bank’s CRM. These relationships imply that more extensive knowledgeability of bank employees and bank employees with more positive attitudes lead to improved, maintained relationships between a bank and its clients. In addition, the empirical investigation revealed that CRM positively influences the service quality of banks. This relationship implies that if a bank successfully maintains relationships with its clients, the bank’s level of perceived service quality would increase. Additionally, the empirical investigation has shown the relationship between a banking client’s age and the CRM of a bank. The higher the age of a banking client, the more that client considers the CRM of a bank to be important. There exists a relationship between a banking client’s education level and the perceived service quality of a bank. If a banking clients’ education level increases, the importance of their bank’s service quality decreases and, conversely, a banking client with a lower level of education regards the service quality level of a bank as more important than higher qualified clients. The study indicated that strategies to improve, specifically, the knowledgeability and attitude of bank employees can and should be implemented by banks in ways to positively influence their CRM and ultimately their service quality. In effect, this will increase client satisfaction and ensure client loyalty to the bank. Ultimately, this will contribute to the bank’s success, which will ensure economic stability and prosperity for a country.
- Full Text:
- Date Issued: 2006
- Authors: Rootman, Chantal
- Date: 2006
- Subjects: Customer relations -- South Africa , Banks and banking -- South Africa , Quality control
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8980 , http://hdl.handle.net/10948/400 , Customer relations -- South Africa , Banks and banking -- South Africa , Quality control
- Description: Despite the extensive research undertaken in the subject area of services marketing, much is still unknown to service providers of specific services in terms of service delivery concepts. This study attempts to address this limitation. The study revolves around the customer relationship management and service quality of banks. Service firms, including banks, are vitally important to the economy of any country, as they contribute to its Gross Domestic Product (GDP) and employment rate. However, to survive in a complex, competitive business environment, service firms are required to focus on their clients’ needs. Specifically, banks can focus on their relationships with clients and levels of service quality. In order to establish the influence of selected variables on the customer relationship management (CRM) of banks and the influence of CRM on the service quality of banks, an empirical investigation was conducted. The aim of this study was to quantify significant relationships among selected variables; therefore the positivistic research paradigm was used. The sample consisted of banking clients in the Nelson Mandela Metropolitan area. The sample size was 290, with a response rate of 91.03%. The empirical investigation revealed that significant positive relationships exist between both the knowledgeability, and attitude, of bank employees and a bank’s CRM. These relationships imply that more extensive knowledgeability of bank employees and bank employees with more positive attitudes lead to improved, maintained relationships between a bank and its clients. In addition, the empirical investigation revealed that CRM positively influences the service quality of banks. This relationship implies that if a bank successfully maintains relationships with its clients, the bank’s level of perceived service quality would increase. Additionally, the empirical investigation has shown the relationship between a banking client’s age and the CRM of a bank. The higher the age of a banking client, the more that client considers the CRM of a bank to be important. There exists a relationship between a banking client’s education level and the perceived service quality of a bank. If a banking clients’ education level increases, the importance of their bank’s service quality decreases and, conversely, a banking client with a lower level of education regards the service quality level of a bank as more important than higher qualified clients. The study indicated that strategies to improve, specifically, the knowledgeability and attitude of bank employees can and should be implemented by banks in ways to positively influence their CRM and ultimately their service quality. In effect, this will increase client satisfaction and ensure client loyalty to the bank. Ultimately, this will contribute to the bank’s success, which will ensure economic stability and prosperity for a country.
- Full Text:
- Date Issued: 2006
A strategic analysis of Capitec Bank Limited within the South African banking industry
- Authors: De Lange, Michael Coenraad
- Date: 2013
- Subjects: Banks and banking -- South Africa , Creative ability in business -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8835 , http://hdl.handle.net/10948/d1019932
- Description: The South African banking industry is well regulated and oligopolistic by nature. The financial sector in South Africa is of a world class standard, comparing favourably to that of developed countries i.e. United States of America and Great Britian, and developing economies such as the BRIC (Brazil, Russia, India and China) countries. The South African financial sector possesses the critical elements to exhibit good growth and sustainable profitabiblity. Capitec Bank Limited revolutionised the banking industry by providing a simplified and cost effective banking solution targeting the masses i.e. the "unbanked" population of South Africa. The company pursued a disruptive innovation strategy by targeting the lower income earning segment of the market i.e. individuals who are employed but do not have bank account. Capite's strategic approach and business model were designed around innovation and technology, exploiting a previously untapped market that no other competitor targeted. This approach has resulted in the bank's phenomenal growth over the past decade and most notably has seen Capitec's return on equity (ROE) increase from 12 percent to 26 percent and advances to costomers increase from R116 million to 16 billion. This has set precedent which the big four banks, namely ABSA, First National Bank, Standard Bank and Nedbank, could not match. Contributing to Capitec's success and the basis on which its business model is built are four pillars: accessibilty, simplicity, affordability and personalised service. These pillars have created a compatitive advantage resulting in the bid four banks playing catch up. A strategic analysis of Capitec bank was conducted in order to assess the feasibility of expansion by the bank into Africa. The conclusion of the study indicated that it was indeed a viable option for Capitec to expand its footprint across borders into Africa through mergers with banks exhibiting a similar business model, for example Equity Bank based in Kenya.
- Full Text:
- Date Issued: 2013
- Authors: De Lange, Michael Coenraad
- Date: 2013
- Subjects: Banks and banking -- South Africa , Creative ability in business -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8835 , http://hdl.handle.net/10948/d1019932
- Description: The South African banking industry is well regulated and oligopolistic by nature. The financial sector in South Africa is of a world class standard, comparing favourably to that of developed countries i.e. United States of America and Great Britian, and developing economies such as the BRIC (Brazil, Russia, India and China) countries. The South African financial sector possesses the critical elements to exhibit good growth and sustainable profitabiblity. Capitec Bank Limited revolutionised the banking industry by providing a simplified and cost effective banking solution targeting the masses i.e. the "unbanked" population of South Africa. The company pursued a disruptive innovation strategy by targeting the lower income earning segment of the market i.e. individuals who are employed but do not have bank account. Capite's strategic approach and business model were designed around innovation and technology, exploiting a previously untapped market that no other competitor targeted. This approach has resulted in the bank's phenomenal growth over the past decade and most notably has seen Capitec's return on equity (ROE) increase from 12 percent to 26 percent and advances to costomers increase from R116 million to 16 billion. This has set precedent which the big four banks, namely ABSA, First National Bank, Standard Bank and Nedbank, could not match. Contributing to Capitec's success and the basis on which its business model is built are four pillars: accessibilty, simplicity, affordability and personalised service. These pillars have created a compatitive advantage resulting in the bid four banks playing catch up. A strategic analysis of Capitec bank was conducted in order to assess the feasibility of expansion by the bank into Africa. The conclusion of the study indicated that it was indeed a viable option for Capitec to expand its footprint across borders into Africa through mergers with banks exhibiting a similar business model, for example Equity Bank based in Kenya.
- Full Text:
- Date Issued: 2013
An analysis of exchange rate pass-through to prices in South Africa
- Authors: Karoro, Tapiwa Daniel
- Date: 2008
- Subjects: Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:953 , http://hdl.handle.net/10962/d1002687 , Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Description: The fact that South Africa has a floating exchange rate policy as well as an open trade policy leaves the country’s import, producer and consumer prices susceptible to the effects of exchange rate movements. Given the central role that inflation targeting occupies in South Africa’s monetary policy, it becomes necessary to determine the nature of influence of exchange rate changes on domestic prices. To this end, this thesis examines the magnitude and speed of exchange rate pass-through (ERPT) to import, producer and consumer prices in South Africa. Furthermore, it explores whether the direction and size of changes in the exchange rate have different pass-through effects on import prices, that is, whether the exchange rate pass-through is symmetric or asymmetric. The paper uses monthly data covering the period January 1980 to December 2005. In investigating ERPT, two main stages are identified. The initial stage is the transmission of fluctuations in the exchange rate to import prices, while the second-stage entails the pass-through of changes in import prices to producer and consumer prices. The first stage is estimated using the Johansen (1991) and (1995) cointegration techniques and a vector error correction model (VECM). The second stage pass-through is determined by estimating impulse response and variance decomposition functions, as well as conducting block exogeneity Wald tests. The study follows Wickremasinghe and Silvapulle’s (2004) approach in estimating pass-through asymmetry with respect to appreciations and depreciations. In addition, the thesis adapts the analytical framework of Wickremasinghe and Silvapulle (2004) to investigate the pass-through of large and small changes in the exchange rate to import prices. The results suggest that ERPT in South Africa is incomplete but relatively high. Furthermore, ERPT is found to be higher in periods of rand depreciation than appreciation which supports the binding quantity constraint theory. There is also some evidence that pass-through is higher in periods of small changes than large changes in the exchange rate, which supports the menu cost theory when invoices are denominated in the exporters’ currency.
- Full Text:
- Date Issued: 2008
- Authors: Karoro, Tapiwa Daniel
- Date: 2008
- Subjects: Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:953 , http://hdl.handle.net/10962/d1002687 , Foreign exchange rates -- South Africa , Monetary policy -- South Africa , Inflation (Finance) -- South Africa , Prices -- South Africa , Banks and banking -- South Africa , South Africa -- Economic policy
- Description: The fact that South Africa has a floating exchange rate policy as well as an open trade policy leaves the country’s import, producer and consumer prices susceptible to the effects of exchange rate movements. Given the central role that inflation targeting occupies in South Africa’s monetary policy, it becomes necessary to determine the nature of influence of exchange rate changes on domestic prices. To this end, this thesis examines the magnitude and speed of exchange rate pass-through (ERPT) to import, producer and consumer prices in South Africa. Furthermore, it explores whether the direction and size of changes in the exchange rate have different pass-through effects on import prices, that is, whether the exchange rate pass-through is symmetric or asymmetric. The paper uses monthly data covering the period January 1980 to December 2005. In investigating ERPT, two main stages are identified. The initial stage is the transmission of fluctuations in the exchange rate to import prices, while the second-stage entails the pass-through of changes in import prices to producer and consumer prices. The first stage is estimated using the Johansen (1991) and (1995) cointegration techniques and a vector error correction model (VECM). The second stage pass-through is determined by estimating impulse response and variance decomposition functions, as well as conducting block exogeneity Wald tests. The study follows Wickremasinghe and Silvapulle’s (2004) approach in estimating pass-through asymmetry with respect to appreciations and depreciations. In addition, the thesis adapts the analytical framework of Wickremasinghe and Silvapulle (2004) to investigate the pass-through of large and small changes in the exchange rate to import prices. The results suggest that ERPT in South Africa is incomplete but relatively high. Furthermore, ERPT is found to be higher in periods of rand depreciation than appreciation which supports the binding quantity constraint theory. There is also some evidence that pass-through is higher in periods of small changes than large changes in the exchange rate, which supports the menu cost theory when invoices are denominated in the exporters’ currency.
- Full Text:
- Date Issued: 2008
Application of Pascale's constructive 'conflict paradigm' to consider transformation efforts at a selected bank with particular attention to the ATM devision
- Authors: Coetzer, Gary
- Date: 2001
- Subjects: Organizational change , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10843 , http://hdl.handle.net/10948/39 , Organizational change , Banks and banking -- South Africa
- Description: In applying Pascale’s (1990) constructive ‘conflict paradigm’ to consider transformation efforts at a selected bank, this study argues that transformation could be sustained if the organisation were to self-reflect on the paradoxes that are generated when constructive conflict is encouraged. Underlying this supposition is the notion of “disequilibrium” which supports creative tension within organisations and prompts inquiry and dialogue, leading to the new. Sustaining disequilibrium allows an organisation to develop the “requisite internal variety” in order to meet the challenges in its environment. Key to encouraging this form of organisational resilience to its environment is the nature of the organisation’s culture or context. Johnson’s (1998) “cultural web” is used to analyse the culture of the selected bank and “re-map” the culture in line with the bank’s transformation strategies. Pascale’s seven domains of contention are applied with particular emphasis on the ATM division in order to develop a profile of conflict in the organisation.
- Full Text:
- Date Issued: 2001
- Authors: Coetzer, Gary
- Date: 2001
- Subjects: Organizational change , Banks and banking -- South Africa
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10843 , http://hdl.handle.net/10948/39 , Organizational change , Banks and banking -- South Africa
- Description: In applying Pascale’s (1990) constructive ‘conflict paradigm’ to consider transformation efforts at a selected bank, this study argues that transformation could be sustained if the organisation were to self-reflect on the paradoxes that are generated when constructive conflict is encouraged. Underlying this supposition is the notion of “disequilibrium” which supports creative tension within organisations and prompts inquiry and dialogue, leading to the new. Sustaining disequilibrium allows an organisation to develop the “requisite internal variety” in order to meet the challenges in its environment. Key to encouraging this form of organisational resilience to its environment is the nature of the organisation’s culture or context. Johnson’s (1998) “cultural web” is used to analyse the culture of the selected bank and “re-map” the culture in line with the bank’s transformation strategies. Pascale’s seven domains of contention are applied with particular emphasis on the ATM division in order to develop a profile of conflict in the organisation.
- Full Text:
- Date Issued: 2001
Protecting depositors and promoting financial stability in South Africa : is there a case for the introduction of deposit insurance?
- Authors: Ngaujake, Uahatjiri
- Date: 2004
- Subjects: Banks and banking -- South Africa , Bank deposits -- South Africa , Bank failures , Banks and banking -- State supervision , Deposit insurance , Consumer protection -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1025 , http://hdl.handle.net/10962/d1002760 , Banks and banking -- South Africa , Bank deposits -- South Africa , Bank failures , Banks and banking -- State supervision , Deposit insurance , Consumer protection -- South Africa
- Description: Banks play a pivotal role in economic growth and development of all countries and therefore the stability of the banking system is a vital goal of bank supervisors. Banks act as delegated monitors of depositors’ funds and this relationship, like all principal-agent relationships, presents agency problems. In the case of banks agency problems arise because depositors cannot accurately assess the financial health of banks due to the asymmetry of information existing between banks and depositors. Because banks possess private information on their borrowers, which depositors cannot access, it exposes depositors to risk of loss of deposits in cases of bank failures originating from nonrepayment of such loans. This asymmetry of information also exposes banks to runs by depositors and these runs can lead to bank failures with devastating effects for the financial system and the economy at large. It is for this reason that banks are regulated and supervised more than other institutions. Bank failures are a worldwide phenomenon and South Africa is no exception as evidenced by historical and recent bank failures in South Africa. This thesis investigates the desirability of introducing an explicit deposit insurance scheme in South Africa as a means of protecting small, unsophisticated depositors who are almost always the losers when banks fail, and promoting financial stability. The study finds that bank failures in South Africa are mainly attributable to mismanagement of banks, liquidity problems and fraud. Bank failures as a result of the aforementioned reasons have led to depositors losing their deposits in South Africa. The absence of a clearly defined depositor protection scheme in South Africa, the inadequacy of the hitherto implicit guarantee system to protect depositors, and the poor record of the South African Reserve Bank in bank failure resolution, form the basis of the conclusion of the study, i.e., there is a case for the introduction of deposit insurance in South Africa. In order to assist South African policymakers in designing an effective deposit insurance scheme for the country, the thesis further provides a guide on how the most important design features of deposit insurance should be handled. This is in an attempt to ensure that the moral hazard problem inherent in deposit insurance is overcome.
- Full Text:
- Date Issued: 2004
- Authors: Ngaujake, Uahatjiri
- Date: 2004
- Subjects: Banks and banking -- South Africa , Bank deposits -- South Africa , Bank failures , Banks and banking -- State supervision , Deposit insurance , Consumer protection -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1025 , http://hdl.handle.net/10962/d1002760 , Banks and banking -- South Africa , Bank deposits -- South Africa , Bank failures , Banks and banking -- State supervision , Deposit insurance , Consumer protection -- South Africa
- Description: Banks play a pivotal role in economic growth and development of all countries and therefore the stability of the banking system is a vital goal of bank supervisors. Banks act as delegated monitors of depositors’ funds and this relationship, like all principal-agent relationships, presents agency problems. In the case of banks agency problems arise because depositors cannot accurately assess the financial health of banks due to the asymmetry of information existing between banks and depositors. Because banks possess private information on their borrowers, which depositors cannot access, it exposes depositors to risk of loss of deposits in cases of bank failures originating from nonrepayment of such loans. This asymmetry of information also exposes banks to runs by depositors and these runs can lead to bank failures with devastating effects for the financial system and the economy at large. It is for this reason that banks are regulated and supervised more than other institutions. Bank failures are a worldwide phenomenon and South Africa is no exception as evidenced by historical and recent bank failures in South Africa. This thesis investigates the desirability of introducing an explicit deposit insurance scheme in South Africa as a means of protecting small, unsophisticated depositors who are almost always the losers when banks fail, and promoting financial stability. The study finds that bank failures in South Africa are mainly attributable to mismanagement of banks, liquidity problems and fraud. Bank failures as a result of the aforementioned reasons have led to depositors losing their deposits in South Africa. The absence of a clearly defined depositor protection scheme in South Africa, the inadequacy of the hitherto implicit guarantee system to protect depositors, and the poor record of the South African Reserve Bank in bank failure resolution, form the basis of the conclusion of the study, i.e., there is a case for the introduction of deposit insurance in South Africa. In order to assist South African policymakers in designing an effective deposit insurance scheme for the country, the thesis further provides a guide on how the most important design features of deposit insurance should be handled. This is in an attempt to ensure that the moral hazard problem inherent in deposit insurance is overcome.
- Full Text:
- Date Issued: 2004
The functioning of the interbank market and its significance in the transmission of monetary policy
- Authors: De Angelis, Catherine
- Date: 2013-06-11
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1075 , http://hdl.handle.net/10962/d1008054 , South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: Monetary policy in South African is the primary means by which the authorities can influence activity in the overall economy. The South African Reserve Bank accommodates banks through repo transactions for which they charge the repo rate. The most important market in the transmission of the repo rate to the rest of the economy is the interbank market. As such, a detailed discussion of this market is given. In September 200 I the monetary authorities made certain adjustments to the repo system of accommodation, which included changing the repo rate from a floating rate to a fixed rate that would be administratively determined by the MPC. This was done to address certain weaknesses in the floating rate system. This thesis examines and compares the period before and after the adjustments to the repo system, with the aim of determining whether or not the monetary authorities achieved the goals intended from making this change. The repo rate, prime interbank rate, 3-month NCO rate and the prime lending rate are analysed using the Engle-Granger two variable approach and an ECM model to test for causality. It was found that the monetary authorities did not achieve their intended goals as the relationship between the repo rate and the interbank rate was more significant in the first period. Furthermore, the direction of causality the authorities hoped to achieve by implementing the changes were in fact already in place. As such the adjustments to the system changed the transmission mechanism from the one desired by the authorities to one that was not intended. The conclusions reached by this study show that, in terms of the objectives of the monetary authorities, the previous repo system functioned better. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
- Authors: De Angelis, Catherine
- Date: 2013-06-11
- Subjects: South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1075 , http://hdl.handle.net/10962/d1008054 , South African Reserve Bank , Monetary policy -- South Africa , Foreign exchange rates -- South Africa , Money market -- South Africa , Banks and banking -- South Africa , Repurchase agreements -- South Africa , South Africa -- Economic policy , South Africa -- Economic conditions
- Description: Monetary policy in South African is the primary means by which the authorities can influence activity in the overall economy. The South African Reserve Bank accommodates banks through repo transactions for which they charge the repo rate. The most important market in the transmission of the repo rate to the rest of the economy is the interbank market. As such, a detailed discussion of this market is given. In September 200 I the monetary authorities made certain adjustments to the repo system of accommodation, which included changing the repo rate from a floating rate to a fixed rate that would be administratively determined by the MPC. This was done to address certain weaknesses in the floating rate system. This thesis examines and compares the period before and after the adjustments to the repo system, with the aim of determining whether or not the monetary authorities achieved the goals intended from making this change. The repo rate, prime interbank rate, 3-month NCO rate and the prime lending rate are analysed using the Engle-Granger two variable approach and an ECM model to test for causality. It was found that the monetary authorities did not achieve their intended goals as the relationship between the repo rate and the interbank rate was more significant in the first period. Furthermore, the direction of causality the authorities hoped to achieve by implementing the changes were in fact already in place. As such the adjustments to the system changed the transmission mechanism from the one desired by the authorities to one that was not intended. The conclusions reached by this study show that, in terms of the objectives of the monetary authorities, the previous repo system functioned better. , KMBT_363 , Adobe Acrobat 9.54 Paper Capture Plug-in
- Full Text:
Transformation in the South African Banking Industry
- Authors: Nokanda, Abongile
- Date: 2022-04
- Subjects: Banks and banking -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/58091 , vital:58550
- Description: Transformation is a deliberate plan of action to change historical racial and gender disadvantages. Transformation is also a fundamental necessity in South Africa as it seeks to address the injustices of apartheid while enhancing economic inclusiveness and promoting diversity in the working environment. The progress of transformation remains slow in South Africa, particularly in management and leadership positions in companies within the South African Banking Sector Therefore, it is quite clear that inequality, discrimination and a lack of transformation in South Africa need to be addressed, as the inequality gap has remained the same, even after the abolition of apartheid. However, the Western Cape is a province that is considered to practice and protect apartheid policies that perpetuate racial, gender and spatial disparities. This study, therefore, sought to investigate the transformation of banks in the Western Cape. The study followed a deductive approach and used an online survey as a data collection tool. At the time of study, the population of the study were employees of banks in the Western Cape and who were permanently employed. Additionally, the aim of this research was to investigate the influence of the Employment Equity Act, Skills Gap, Leadership Accountability and Human Resource Development in driving transformation in the banking sector of the Western Cape region in South Africa. The empirical results of the study were obtained from 105 bank employees located in the Western Cape. The Employment Equity Act, Leadership Accountability and Human Resource Development were the strongest independent variables. The Employee Development was an independent variable that emerged from the respondents. The findings of the study indicated that Employment Equity Act, Leadership Accountability, Employee Development and Human Resource Development had a significant, positive relationship with Transformation. The study also revealed the Skills Gap as the only independent variable that had an insignificant impact on Transformation. The recommendations were made to the Western Cape Banks to implement and continue to: drive the implementation of the EE Act; for leaders to be held accountable when it comes to driving transformation; banks to establish and facilitate employee development programs and for human resource to identify, retain and promote talented employees. This will therefore lead to a better performing and transformed banking sector. , Thesis (MA) -- Business and Economic science, 2022
- Full Text:
- Date Issued: 2022-04
- Authors: Nokanda, Abongile
- Date: 2022-04
- Subjects: Banks and banking -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/58091 , vital:58550
- Description: Transformation is a deliberate plan of action to change historical racial and gender disadvantages. Transformation is also a fundamental necessity in South Africa as it seeks to address the injustices of apartheid while enhancing economic inclusiveness and promoting diversity in the working environment. The progress of transformation remains slow in South Africa, particularly in management and leadership positions in companies within the South African Banking Sector Therefore, it is quite clear that inequality, discrimination and a lack of transformation in South Africa need to be addressed, as the inequality gap has remained the same, even after the abolition of apartheid. However, the Western Cape is a province that is considered to practice and protect apartheid policies that perpetuate racial, gender and spatial disparities. This study, therefore, sought to investigate the transformation of banks in the Western Cape. The study followed a deductive approach and used an online survey as a data collection tool. At the time of study, the population of the study were employees of banks in the Western Cape and who were permanently employed. Additionally, the aim of this research was to investigate the influence of the Employment Equity Act, Skills Gap, Leadership Accountability and Human Resource Development in driving transformation in the banking sector of the Western Cape region in South Africa. The empirical results of the study were obtained from 105 bank employees located in the Western Cape. The Employment Equity Act, Leadership Accountability and Human Resource Development were the strongest independent variables. The Employee Development was an independent variable that emerged from the respondents. The findings of the study indicated that Employment Equity Act, Leadership Accountability, Employee Development and Human Resource Development had a significant, positive relationship with Transformation. The study also revealed the Skills Gap as the only independent variable that had an insignificant impact on Transformation. The recommendations were made to the Western Cape Banks to implement and continue to: drive the implementation of the EE Act; for leaders to be held accountable when it comes to driving transformation; banks to establish and facilitate employee development programs and for human resource to identify, retain and promote talented employees. This will therefore lead to a better performing and transformed banking sector. , Thesis (MA) -- Business and Economic science, 2022
- Full Text:
- Date Issued: 2022-04
Competition factors influencing client switching behaviour within the commercial banking industry
- Authors: Mathiyase, Kholiswa
- Date: 2017
- Subjects: Banks and banking -- South Africa , Competition -- South Africa , Financial services industry -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/45366 , vital:38574
- Description: Banks are faced with challenges of retaining clients and preventing them from switching to competitors. For many years the South African banking industry has been dominated by the big four banks that were not known to be client focused. The banks were also known for serving only the middle and high-income earners, with the banks having a high and non-transparent banking fee structure. As a result, Capitec Bank was established in 2001 and differentiated itself from the traditional ways of providing banking service. One of their value propositions, Capitec Bank provided low and transparent banking fees, provided a unique personalised service to cater for the unbanked market and is gradually serving the middle and high-income market as well. Capitec Bank managed to establish its presence in the South African banking industry despite the dominance of the big four banks. The banking industry environment has also been subjected to a number of changes, including the entrants of other non-traditional banks, changing client behaviour, technology, regulatory and political reforms and the current depressed economic conditions.
- Full Text:
- Date Issued: 2017
- Authors: Mathiyase, Kholiswa
- Date: 2017
- Subjects: Banks and banking -- South Africa , Competition -- South Africa , Financial services industry -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/45366 , vital:38574
- Description: Banks are faced with challenges of retaining clients and preventing them from switching to competitors. For many years the South African banking industry has been dominated by the big four banks that were not known to be client focused. The banks were also known for serving only the middle and high-income earners, with the banks having a high and non-transparent banking fee structure. As a result, Capitec Bank was established in 2001 and differentiated itself from the traditional ways of providing banking service. One of their value propositions, Capitec Bank provided low and transparent banking fees, provided a unique personalised service to cater for the unbanked market and is gradually serving the middle and high-income market as well. Capitec Bank managed to establish its presence in the South African banking industry despite the dominance of the big four banks. The banking industry environment has also been subjected to a number of changes, including the entrants of other non-traditional banks, changing client behaviour, technology, regulatory and political reforms and the current depressed economic conditions.
- Full Text:
- Date Issued: 2017