published_or_final_version / Economics and Finance / Doctoral / Doctor of Philosophy

published_or_final_version / Asian Studies / Master / Master of Arts

Abstract not available

LL M. (Commercial Law) / It is believed that Islamic banking and finance is currently the fastest growing system of banking in the world. In 2010, Islamic finance institutions reported an estimated USD 1 trillion in global assets, and an estimated growth rate of 15%.1 Many countries have taken notice of this growth, and have attempted to implement measures that will allow them to best reap their share of the spoils. This dissertation will attempt to explain the nature of Islamic banking, its history and development, as well as the main principles upon which it is based. The dissertation will then compare Islamic banking and its Western or conventional banking counterparts as well as advantages and drawbacks of both systems. The dissertation will attempt to provide an exposition of the current regime in South Africa and its impact on the functions of Islamic banks, as well as providing an explanation of how these banks operate within the South African legal framework. The dissertation will also explore the legal systems and regulation of Islamic banks and other financial institutions in other jurisdictions, and also attempt to provide a guide as to whether the South African position needs reform or whether it is sufficient to take advantage of this growing sector of finance ...

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.

Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: The new Basel Capital Accord is intended to align capital adequacy of banks more closely with the key components of banking risk and to provide incentives for banks to improve their risk measurement and management capabilities. This has important implications for banks, particularly in the area of credit risk management. The purpose of this study is to take an in-depth look at the implications for banks in the area of credit risk management and the choice of approach (i.e. standardised versus internal ratings based approach) to be adopted. These changes in approach to credit risk will have broader economic implications and the study will in its final analysis explore these in the context of South Africa, as an emerging market. The study is split into three sections: Section A • Introduction and background to the New Basel Capital Accord; • Detailed overview on the New Basel Capital Accord with a particular emphasis on the internal ratings based approach to calculating minimum capital. Section B An in-depth discussion of credit risk management and the practical implications of moving towards an internal ratings based approach, which will eventually allow banks to take on a full portfolio approach to credit risk management. This will enable banks to manage credit risk across sub-portfolios and set economic capital based on the portfolio loss distribution of the banks entire lending book. This is an extremely important development in credit risk management and as a consequence is covered in some detail. The adoption of an internal ratings based approach offers significant rewards in the form of lower statutory capital. A profile of the current capitalisation of SA banks is provided followed by the likely effect of the standardised versus the internal ratings based approach to credit risk management, on the minimum level of statutory capital of banks. Section C The final section covers the envisaged macro effects of the New Accord on emerging markets (procyclical trends, lending concentrations, foreign capital flows and bank failures) with specific comment provided on the implications for the SA banking environment and economy. In conclusion, South African banks should as a priority move towards an internal ratings based approach to credit risk management in order to benefit from the lower statutory requirements, which accrue in the advanced phase. While the accord is likely to impact significantly on emerging markets, South Africa fortunately has a sophisticated banking system by international standards, making the adoption of an internal ratings based approach by the larger SA banks inevitable. The benefits for smaller banks are questionable and at this stage they are unlikely to move beyond the standardised approach, unless compelled to do so. / AFRIKAANSE OPSOMMING: Die "New Basel Capital Accord" het ten doel om die kapitaal vereistes neergelê vir banke meer in lyn te bring met die risiko komponent gekoppel bankwese. Dit hou 'n belangrike implikasie vir banke in en verskaf voorts ook 'n dryfveer vir banke om die bestuur van krediet risiko en algehele bestuursvaardighede te verbeter. In hierdie studie word 'n indiepte ondersoek onderneem aangaande die implikasie op banke van krediet risiko-bestuur en die keuse van die benadering wat gevolg word. Hierdie veranderings in die benadering (dws.standard teenoor interne-graderings benadering) tot krediet risiko hou breër ekonomiese implikasies vir banke in. Hierdie ekonomiese implikasies op SA as 'n ontwikkelende mark word in die finale analise ondersoek. Die studie kan in drie afdelings verdeel word: Afdeling A: • Inleiding en agtergrond tot die "New Basel Capital Accord" en • 'n Gedetaileerde oorsig van die "New Basel Capital Accord" met spesifieke verwysing na die interne-graderings benadering om die minimum vereiste kapitaal te bepaal. Afdeling B: Hierdie afdeling ondersoek krediet risiko bestuur en die praktiese implikasies van die aanvaarding/instelling van 'n interne graderings benadering, en die effek wat dit sal hê op 'n totale portefeulje benadering tot krediet risiko. Die gevolg is dat banke krediet risiko oor sub-portefeuljes sal kan bestuur en kapitaal vlakke vasstel gebaseer op verwagte portefeulje verliese. Hierdie is 'n belangrike ontwikkeling in krediet risiko bestuur en word vervolgens in diepte behandel. Die aanvaarding van 'n interne-graderings benadering tot gradering hou voordele in vir banke in die vorm van laer statutêre kapitaal vereistes. 'n Profiel van die kapitalisasie van SA banke word verskaf, gevolg deur die verskil in die effek van die standaard benadering tot die interne graderings benadering op krediet risiko bestuur en die vereiste minimum statutêre kapitaal. Afdeling C: Die finale afdeling ondersoek die beoogde makro ekonomiese effek van die "New basel capital Accord" op ontwikkelende marke (pro-sikliese neiging, lenings konsentrasies en bank mislukkings) met spesifieke verwysing na die implikasies op SA bankwese en ekonomie. Ter afsluiting moet SA banke so spoedig moontlik die interne-graderings benadering tot krediet risiko aanvaar om voordeel te trek uit die laer kapitaal vereistes wat "ophoop in die gevorderde stadium." Daar word verwag dat die "New Basel Capital Accord" 'n wesenlike invloed op die ontwikkelende mark sal hê. SA het egter 'n gesofistikeerde en gevestigde bankstelsel wat goed vergelyk met internasionale standaarde. Die aanvaarding van 'n interne-graderings benadering deur die die groter SA banke is onafwendbaar. Die voordele wat dit vir kleiner banke inhou kan bevraagteken word en is op hierdie stadium onwaarskynlik dat so 'n benadering deur hulle geïmplimenteer sal word.

Thesis (MBA)--Stellenbosch University, 2014. / Research on strategy has been focusing at organisational level, mostly on practices such as strategic planning, strategy workshops and consultancy practices. With the emergence of strategy-as-practice, the focus has been redirected to explore beneath organisational-level processes and bring to the fore the role that people play in the practice of strategy. This research project looked at the practice of strategy within the Namibia Financial Institutions Supervisory Authority (NAMFISA), the financial regulator in Namibia. Strategy is seen within this research project as something that is ‘done’ by actors who are referred to as ‘practitioners’ of strategy. Strategy-as-practice research is a relatively new field of strategy research. This assignment has aimed to add to the fast growing body of knowledge in the strategy-as-practice research field and it forms part of a collaborative between the University of Stellenbosch Business School (USB) and The Narrative Lab. The researcher explored how strategy is practised within NAMFISA, as the case study company. The assignment points out the strategy actors, the practices and processes they follow as well as the tools they use to plan and execute the NAMFISA strategy. The researcher took an activity-based view and paid special attention to practitioners, practices and praxis (Jarzabkowski, 2005) involved in strategising as well as the manner in which NAMFISA ‘does’ strategy. The system aspects of Biomatrix theory, namely environment, ethos, aims, processes, structure, governance and matter, energy and information (Mei), as described by Dostal, Cloete and Járos (2005), were also integrated into the research wherever they were deemed to affect the practice of strategy at NAMFISA. The above-mentioned aspects, in conjunction with the elements of the activity-based view and the strategising matrix (Jarzabkowski, 2005), shaped the basis for the analysis which was done using the ATLAS.ti tool. After the first analysis, a second analysis was performed using SenseMakerTM Explorer, another qualitative analysis tool which helped in gaining an in-depth understanding of the findings obtained using the ATLAS.ti tool. During the second analysis exercise, the respondents were requested to self-index their own narratives about the strategy activities at NAMFISA. Practices were found to be dominated by planning and discussions and praxis occurred predominantly at the meso level within NAMFISA. As the practice of strategy is entrenched, procedural strategising was found to be the most dominant of the strategising matrix, followed by interactive. No element of preactive strategising was observed. Planning was done by the executive and middle managers, mostly at annual strategic retreats. The use of external consultants was minimal. The research concluded with recommendations for further studies on strategy-as-practice research in Southern Africa.

by Sze Ho-Yee. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1999. / Includes bibliographical references (leaves 48-49). / ABSTRACT --- p.ii / TABLE OF CONTENTS --- p.iii / Chapter / Chapter I. --- INTRODUCTION --- p.1 / General Background --- p.1 / Research Objectives --- p.3 / Framework of the Study --- p.3 / Chapter II. --- LITERATURE REVIEW --- p.4 / Chapter III. --- TYPICAL CENTRAL BANK FUNCTIONS --- p.8 / Policy Function --- p.8 / Banking Function --- p.9 / Prudential Function --- p.10 / Developmental and Research Function --- p.10 / Chapter IV. --- A REVIEW OF THE BANKING INDUSTRY IN CHINA --- p.12 / The Central Bank --- p.12 / State Specialized Banks --- p.13 / Policy Banks --- p.14 / Other Commercial banks and Foreign Banks --- p.15 / Chapter V. --- ROLE OF THE PEOPLE'S BANK OF CHINA AND THE UNDERLYING LEGAL FRAMEWORK --- p.16 / Formation of PBOC --- p.16 / Establishment of a legal framework for the Central Bank - PBOC --- p.17 / Autonomy of the Central Bank - PBOC --- p.17 / Primary Objective of the Central Bank - PBOC --- p.18 / Functions of the Central Bank - PBOC --- p.19 / Monetary Control --- p.19 / Prudential Regulatory Control --- p.21 / Currency Issuance and Payment Transfer Systems Control --- p.21 / Legal Entity --- p.22 / Chapter VI. --- EVOLUTION OF THE ROLE OF THE PBOC --- p.23 / "PBOC as a ""Monobank""" --- p.24 / PBOC as an Independent Ministry --- p.25 / PBOC as the Central bank --- p.26 / Independence of the PBOC --- p.27 / Degree of autonomy for the PBOC --- p.28 / Chapter VII. --- FACTORS CONTRIBUTING TO THE CHANGES OF PBOC'S ROLE --- p.30 / Institutional Change --- p.30 / Economic Reforms --- p.32 / Market Competition --- p.33 / Chapter VIII. --- CONCLUSION --- p.35 / APPENDIX --- p.37 / BIBLIOGRAPHY --- p.48

The New Zealand economy in the period up to 2006 provides an opportunity to assess an alternative disclosure based approach to the prudential regulation of deposittakers, in a market free of many of the distortions which arise from traditional regulatory schemes. The overall objective of this research has been to assess the effectiveness of the prudential regulation of New Zealand financial institutions and judge if the country is well served by it. Analysis of New Zealand’s registered bank sector suggests public disclosure adds value to New Zealand’s financial system. However, the significant relationship found between disclosure risk indicators and bank risk premiums was not as a result of market discipline, rather it is argued self-discipline was the mechanism, demonstrating bank management and directors are discharging their duties in a prudent manner. A feature of the New Zealand disclosure regime for banks is the significant responsibilities placed on bank directors; directors are then held accountable for their actions. Findings in the management of banks were in contrast to non-bank deposittakers, where disclosure was judged to be ineffective, and of no practical use due to its poor quality. The management of non-bank deposit-takers appeared to receive very little oversight from depositors, their trustees or official agencies. As a result, many appear to have managed their institution in their own interests, with little consideration given to other stakeholders. Failures which occurred in NBDTs from 2006 resulted from deficiencies in the prudential regulation of these deposit-takers, demonstrating the severity of asymmetric information and moral hazard problems which can arise if prudential regulation is not correctly designed and management interests are not aligned with other stakeholders. The New Zealand disclosure regime will never guarantee a bank will not fail, nor should it try to do so, but it should assist the functioning of a sound and efficient financial system. To this end, it is recommended that the Reserve Bank, in re-designing the regulatory framework for NBDTs, hold the management and directors of NBDTs similarly accountable, while also incorporating regular disclosure and minimum prudential standards. Governments have an important role to play in ensuring the financial system is efficient.

The New Zealand economy in the period up to 2006 provides an opportunity to assess an alternative disclosure based approach to the prudential regulation of deposittakers, in a market free of many of the distortions which arise from traditional regulatory schemes. The overall objective of this research has been to assess the effectiveness of the prudential regulation of New Zealand financial institutions and judge if the country is well served by it. Analysis of New Zealand’s registered bank sector suggests public disclosure adds value to New Zealand’s financial system. However, the significant relationship found between disclosure risk indicators and bank risk premiums was not as a result of market discipline, rather it is argued self-discipline was the mechanism, demonstrating bank management and directors are discharging their duties in a prudent manner. A feature of the New Zealand disclosure regime for banks is the significant responsibilities placed on bank directors; directors are then held accountable for their actions. Findings in the management of banks were in contrast to non-bank deposittakers, where disclosure was judged to be ineffective, and of no practical use due to its poor quality. The management of non-bank deposit-takers appeared to receive very little oversight from depositors, their trustees or official agencies. As a result, many appear to have managed their institution in their own interests, with little consideration given to other stakeholders. Failures which occurred in NBDTs from 2006 resulted from deficiencies in the prudential regulation of these deposit-takers, demonstrating the severity of asymmetric information and moral hazard problems which can arise if prudential regulation is not correctly designed and management interests are not aligned with other stakeholders. The New Zealand disclosure regime will never guarantee a bank will not fail, nor should it try to do so, but it should assist the functioning of a sound and efficient financial system. To this end, it is recommended that the Reserve Bank, in re-designing the regulatory framework for NBDTs, hold the management and directors of NBDTs similarly accountable, while also incorporating regular disclosure and minimum prudential standards. Governments have an important role to play in ensuring the financial system is efficient.