M.Phil. (Economics) / There has been increasing focus on banking system stability worldwide, particularly due to the recent financial crisis experienced and the resultant adverse economic effects. In the case of a developing country like South Africa (SA), the stability of the banking system is even more important as it is crucial for the achievement of the country’s development goals. Credit extension is also a core component for facilitating economic and social development in the country. The downside risk attached to credit extension is that once it reaches a point of being excessive it can have a destabilising effect on the banking system and the economy. SA has experienced a rapid increase in credit extension since 2001, which prompted the implementation of the National Credit Act (NCA), with the intention of regulating the credit industry and improving the practices therein. More recently, further concerns have been raised by regulatory authorities around the possibility of an asset bubble in the SA economy as a result of the level of unsecured credit extended in the country. The objective of this study therefore is to investigate the impact of the NCA on risk, both credit and systemic, in the banking system. This is important, as investigating and understanding the impact of credit controls, like the NCA, on risk in the banking system is critical to supporting the SA development agenda. The findings of this study show that the NCA has been successful in reducing credit risk in the banking system, even though this was by default and not through the stated intention of the Act. This was achieved through the introduction of the affordability requirement into the credit assessment process. This study highlights however, that there are still areas of improvement which can be made to the NCA to increase its effectiveness in preventing excessive credit extension.

Operational risk has become an increasingly important topic within financial institutions of late, resulting in an increased spend by financial service organisations on operational risk management solutions. While this move is positive, evidence has shown that information technology implementations have tended to have low rates of success. Research highlighted that a series of defined critical success factors could reduce the risk of implementation failure. Investigations into the literature revealed that no critical success factors had been defined for the implementation of an operational risk management system. Through a literature study, a list of 29 critical success factors was identified. To confirm these factors, a questionnaire was developed. The questionnaire was distributed to an identified target audience within the South African financial services community. Reponses to the questionnaire revealed that 27 of the 29 critical success factors were deemed important and critical to the implementation of an operational risk management system. / Business Management / M. Com. (Business Management)

The role that banks as key intermediaries play in the modern economy activities is unquestionable, it is admitted that banks remain one of the key financial intermediaries that provide a variety of services in the economy of every state. However, not all financial intermediaries have a significant impact on modern economies, only a stable and profitable banking sector can adequately play the role of financial intermediary in economy. The bank, as an intermediary in the modern economy must be profitable, and this profitability depends on a number of factors that are referred to in this study as determinants of bank profitability. The effect of internal and external determinants of the bank profitability in South Africa is the main focus of this study. It utilized annual time series internal and external data for the period 2001 to 2013. Quantitative approach methodology using secondary data and panel data technique to measure the impact of the determinants was used in the study. The sample consists of nine banks, followed for 12 years and sampled annually. The results for bank-specific consist of four statistically significant variables such as bank size, non-interest income and non-interest expense and credit risk and four non-significant variables (equity capital, loan, saving deposit, fixe term deposit) also the industry-specific consist only one significant variable (market concentration) while macro-economic determinants consist of three non-significant variables (economic growth, inflation, and lending interest rate). In conclusion, the empirical result shows that the bank specific factors are directly controlled by the Management thereby it has a positive correlation to the bank profitability while the industry specific (market concentration) also positively affects the bank profitability. However, the macroeconomic variables which are beyond the scope of management control were non-significant to profitability but show positive sign. Therefore, the variables which are significant affect positively the bank profitability, and the non-significant variables affect the bank profitability negatively. The findings were consistent with mixed results found in prior literature. / Business Management / M. Com. (Business Management)

Project success is vitally important for companies to execute and achieve their strate-gies, as well as carry out their visions. Today, more than ever before, companies oper-ate under tremendous strain to deliver results rapidly and, at the same time, remain viable and adaptable. Many organisations face multiple constraints in the process of implementing successful governance structures, especially where meaningful information technology (IT) deals are involved. Every organisation is confronted by problems exclusive to itself as each organization’s ecological, political, geographical, economic and social issues are unique. Research has indicated that IT projects are likely to fail where governance is lacking due to organizational limitations. Each of the mentioned challenges is capable of giving rise to difficulties that make the provision of effectual governance impossible, or challenging. Investments by financial institutions in South Africa in IT projects can conservatively be estimated at billions of rands. Given such colossal investment amounts, there is concern as to why there is still a lack of cooperation between various banking institutions in developing unified standards and procedures which result in successful management of IT projects. The unified standards would ensure that the investments in IT generate business value and mitigate the risks associated with IT, an integral part of the overall business delivery. IT governance is an integral part of corporate governance and en-sures that IT goals are met, and attendant risks are mitigated. IT governance powers ensures alignment between IT investment and programme delivery, and must justly measure accomplishments. This study was undertaken to evaluate and establish the reasons why IT project man-agement and IT regulatory governance fail within the South African banking industry. The objectives of the study were to find ways of addressing the way in which IT project management and regulatory governance are implemented so as to address project fail-ures. Another objective was to recommend frameworks which would usher in positive impacts on IT project implementation and develop effective IT regulatory standards for the South African banking sector. The findings of the study reflected that IT projects should be directed from the very top of organisations. The boards of directors and senior management should take owner-ship of IT projects and governance issues. The findings also revealed that there is a need for supervision by the boards of directors. This ensures that investments made in IT systems produce reasonable returns for the institutions. Regular checks of IT systems and governance compliance are essential to ensure enforcement. The research results were explained and equated to the studied information. / School of Computing / M. Tech. (Information Technology)

Made available in DSpace on 2015-12-03T18:33:08Z (GMT). No. of bitstreams: 1 Marcelo_de_Oliveira_Cardoso.pdf: 1815960 bytes, checksum: 47794692be2e0d4e60f97e2abafffbd7 (MD5) Previous issue date: 2014-05-08 / This Objective of this study is to investigate challenges in the determination of the Required Referential Net Equity, of financial institutions, with the entry into force of the new Central Bank regulations that meet the recommendations of the Committee on Banking Supervision Basel III. The application of standards subject to the Resolution 3897/2010 revoked by Resolution 4194/2013 will address the implementation and management of liquidity risk, the new methodology of calculating the Reference Equity and the introduction of additional core capital, among other issues. Changes brought by the withdrawal of tax credits for purposes of computing the capital and changes in the form of acceptance of subordinated debt will have a strong impact on all financial institutions, with repercussions on the levels of capitalization and leverage. In this Risk management in banking and capital management with emphasis on the determination of the reference net equity required. The results suggest the need to strengthen the management of new sources of capital and line-of-business and customers, as circular 3644, especially for the average banks / O objetivo desse estudo ?? investigar as principais mudan??as na determina????o do Patrim??nio de Refer??ncia Exigido das institui????es financeiras, com a entrada em vigor das novas regulamenta????es do Banco Central, que atendem as recomenda????es do Comit?? de Supervis??o Banc??ria de Basileia III. A aplica????o das normas que s??o objeto da Resolu????o 3897/2010 revogada pela Resolu????o 4194/2013 tratar??o da implementa????o e do gerenciamento do risco de liquidez e Cr??dito, da nova metodologia de apura????o do patrim??nio de refer??ncia e da introdu????o do adicional de capital principal, entre outras quest??es. Mudan??as como a dedu????o gradativa do saldo dos cr??ditos tribut??rios diretamente do Capital e altera????es na forma de aceita????o das d??vidas subordinadas t??m forte impacto sobre todas as institui????es financeiras, com repercuss??o nos seus n??veis de capitaliza????o e alavancagem. Nesse contexto, foi realizado revis??o da literatura sobre os assuntos: Basileia I, II e III, riscos na gest??o banc??ria e gerenciamento de capital com ??nfase na determina????o do Patrim??nio de Refer??ncia Exigido. Os resultados encontrados sugerem a necessidade de refor??ar a gest??o de novas fontes de capital e de linhas de neg??cios e clientes, conforme circular 3644, sobretudo para os bancos m??dios

The study explores pausing in action is, within the ambit of Strategy-as-practice (s-ap) as an emergent school of thought. Pausing is thus discerned during the implementation phase of the strategy of a credit risk system within a South African bank, as strategy is known to take shape during implementation. Different sites of the bank’s systems – change, strategy practitioners, and their times of pausing, form the unit of analysis. Strategy-making and engagement are explored by understanding the influence of pausing on enabling or disenabling the strategic outcome of the risk system. Pausing is situated in an applied and theoretical gap as an intangible under-theorised strategy practice. Practitioners, as champions or non-champions of strategy, pause in various ways, and attribute meaning to this ‘action’. Their account of pausing is recognised for its value-adding or diminishing dimensions to strategy-making. The study follows a comprehensive literature review which shows limited theoretical positions on embodied, latent practices, such as pausing, as strategic practices. The body of knowledge provides a challenge for scholars to consider perceived ‘silences’ or the ‘receding’ of strategists as un-remarked dimensions of strategy, which could nevertheless be instrumental in the nature of the strategic outcome. The contribution of the current study identifies pausing as a strategic practice, especially when considered within the structure of engagement and social learning / Business Management / M. Com. (Business Management)

The maturity transformation of deposits is a primary driver of economic growth, as loans enable borrowers to spend funds, thereby growing the economy. However, if borrowers cannot repay their loans, the asset quality of banks deteriorate, resulting in non-performing loans or, worse, an economic crisis. An understanding of how macroeconomic and microeconomic determinants impact bank asset quality in South Africa can contribute to knowledge of the bank asset quality phenomenon in the African context. Due to the 2008/2009 global financial crisis, the introduction of new legislation and the value of gold exports, the South African economy presents an opportunity to make an original contribution to the knowledge of determinants that influence bank asset quality. In addition to studying bank asset quality determinants that are contested in research, this study also aims to determine whether a superior returns determinant of non-performing loans exists when comparing a bank’s profitability determinants, namely return on assets, return on equity and interest income on loans. This study applied panel data regression analysis, making use of a balanced panel approach, to study the determinants of bank asset quality. This approach recontextualises the existing bank asset quality theory for the South African financial sector. The results indicate that South Africa is not resilient against the impact of global financial crises trickling through international trade linkages and that regulatory changes do not instantly improve bank asset quality, and may even reduce the short-term asset quality. Moreover, bank asset quality in South Africa is sensitive to the total value of gold exports. It is evident from the profitability measures that the interest income on loans is the most suitable profitability measure of bank asset quality. This study provides an original contribution to bank asset quality determinants and recommends that regulators should pre-emptively determine the impact of new legislation on bank asset quality. Furthermore, interest income on loans as a profitability measure provides the most accurate results. Lastly, a single-country bank asset quality analysis is important, especially for economies that have commodity exports that significantly weigh in on the bank asset mix. / Die termyntransformasie rakende deposito's is die primêre dryfkrag vir groei in die ekonomie: Lenings maak dit vir leners moontlik om fondse te bestee, wat die ekonomie laat groei. Indien hierdie leners hul lenings egter nie kan terugbetaal nie, gaan die gehalte van bankbates agteruit, wat tot wanpresterende lenings of, nog erger, tot 'n ekonomiese krisis kan lei. As begryp kan word hoe makro-ekonomiese en mikro-ekonomiese bepalende faktore op die gehalte van bankbates in Suid-Afrika inwerk, kan dit bydra tot kennis van die verskynsel van bankbategehalte in die Afrika-konteks. In die lig van die 2008/2009 wêreldwye finansiële krisis, die uitvaardiging van nuwe wetgewing en die waarde van gouduitvoere bied die Suid-Afrikaanse ekonomie ’n geleentheid om ’n oorspronklike bydrae te lewer tot kennis van die bepalende faktore wat bankbategehalte beïnvloed. Benewens die bestudering van die bepalende faktore van die gehalte van bankbates wat in navorsing redelik omstrede is, het hierdie studie ten doel om, wanneer 'n bank se winsgewendheidsbepalers, naamlik opbrengs op bates, opbrengs op ekwiteit (eiekapitaal) en rente-inkomste op lenings, met mekaar vergelyk word, vas te stel of daar ’n superieure opbrengsbepaler van wanpresterende lenings bestaan. Vir hierdie studie is ’n regressieontleding van paneeldata uitgevoer, en daar is van ’n gebalanseerde paneelbenadering gebruik gemaak om die bepalende faktore van bankbategehalte te bestudeer. Hierdie benadering herkontekstualiseer die bestaande bankbategehalteteorie vir die Suid-Afrikaanse finansiële sektor. Die resultate van die studie dui daarop dat Suid-Afrika nie veerkragtig is om die uitwerking van wêreldwye finansiële krisisse teen te werk wat met internasionale handelskakelings deursyfer nie en dat reguleringsveranderinge nie dadelik die bankbategehalte verbeter nie; dit kan inteendeel die korttermynbategehalte verlaag. Bowendien is die bankbategehalte in Suid-Afrika gevoelig vir die totale waarde van gouduitvoere. Dit blyk uit die winsgewendheidsmaatstawwe dat die rente-inkomste op lenings die mees geskikte winsgewendheidsmaatstaf van bankbategehalte is. Hierdie studie lewer ’n oorspronklike bydrae tot die bepalers van bankbategehalte en beveel aan dat reguleerders vooruit reeds die uitwerking van nuwe wetgewing op bankbategehalte moet bepaal. Daarby voorsien rente-inkomste op lenings as winsgewendheidsmaatstaf die akkuraatste resultate. Laastens is ’n ontleding van ’n enkele land se bankbategehalte van belang, in die besonder vir ekonomieë met kommoditeitsuitvoere wat beduidend tot die samestelling van bankbates bydra. / Kadimo ya nako ye kopana ya ditipositi ke mokgwa wo bohlokwa wa kgolo ya ekonomi, ka ge dikadimo di dumelela baadimi go šomiša matlotlo, go realo e le go godiša ekonomi. Efela, ge baadimi ba sa kgone go lefela dikadimo tša bona, boleng bja thoto ya dipanka bo a phuhlama, go feleletša go e ba le dikadimo tše di sa šomego gabotse goba, go feta fao, phuhlamo ya ekonomi. Kwešišo ya ka fao ditaetšo tša makroekonomi le maekroekonomi di huetšago boleng bja thoto ya panka ka Afrika Borwa e ka ba le seabe go tsebo ya taba ya boleng bja thoto ya panka go ya ka seemo sa Afrika. Ka lebaka la mathata a ditšhelete a lefase a 2008/2009, tsebišo ya molao wo moswa le boleng bja dithomelontle tša gauta, ekonomi ya Afrika Borwa e fa sebaka seabe sa mathomo tsebong ya ditaetšo tšeo di huetšago boleng bja thoto ya panka. Go tlaleletša nyakišišong ya ditaetšo tša boleng bja thoto ya panka tšeo di ganetšwago nyakišišong, maikemišetšo a nyakišišo ye gape ke go laetša ge eba taetšo ya letseno le legolo la dikadimo tše di sa šomego gabotse di gona ge go bapetšwa ditaetšo tša poelo ya panka, e lego letseno la dithoto, letseno la dišere le letseno la dikadimo. Nyakišišo ye e šomišitše tshekatsheko ya poelomorago ya datha ya phanele, ya go šomiša mokgwa wa phanele wo o lekaneditšwego, go nyakišiša ditaetšo tša boleng bja thoto ya panka. Mokgwa wa go tšwetšapele gape teori ya boleng bja thoto ya panka ya lekala la Afrika Borwa la ditšhelete. Dipoelo di laetša gore Afrika Borwa ga e fokole kgahlanong le khuetšo ya mathata a ditšhelete a lefase ao a rothelago ka dikamanong tša kgwebišano ya boditšhabatšhaba le gore diphetogo tša taolo ga di kaonafatše boleng bja thoto ya panka ka lebelo, gomme di ka fokotša le boleng bja thoto bja paka ye kopana. Go feta fao, boleng bja thoto ya panka ka Afrika Borwa bo ela hloko boleng bja palomoka bja dithomelontle tša gauta. Go a bonagala go tšwa go dikgato tša tiro ya poelo gore letseno la tswala godimo ga dikadimo ke kgato ya poelo ye maleba gagolo ya boleng bja thoto ya panka. Nyakišišo ye e fa seabe sa mathomo ditaetšo tša boleng bja thoto ya panka gomme e šišinya gore balaodi ba swanela go laetša e sa le ka pela khuetšo ya molao wo moswa ka ga boleng bja thoto ya panka. Go feta fao, letseno la tswala godimo ga dikadimo bjalo ka kelo ya tiro ya poelo le go fa dipoelo tše di lebanego gabotse. Sa mafelelo, tshekatsheko ya boleng bja thoto ya panka ya naga e tee, kudu diekonomi tšeo di nago le dithomelontle tša ditšweletšwa tšeo gagolo di dumelelago motswako wa thoto ya panka. / Business Management / Ph. D. (Management Studies)

This thesis consists of four independent chapters on bank capital regulation and the issue of unsolicited ratings.<p><p>The first chapter is introductory and reviews the motivation for regulating banks and credit rating agencies while providing a detailed overview of the thesis.<p><p>The second chapter uses a simultaneous equations model to analyze how banks from six G10 countries adjusted their capital to assets ratios and risk-weighted assets to assets ratio between 1988 and 1995, i.e. just after passage of the 1988 Basel Accord. The results suggest that regulatory pressure brought about by the 1988 capital standards had little effect on both ratios for weakly capitalized banks, except in the US. In addition, the relation between the capital to assets ratios and the risk-weighted assets to assets ratio appears to depend not only on the level of capitalization of banks, but also on the countries or groups of countries considered.<p><p>The third chapter provides Monte Carlo estimates of the amount of regulatory capital that EMU banks must hold for their corporate, bank, and sovereign exposures both under Basel I and the standardized approach to credit risk in Basel II. In the latter case, Monte Carlo estimates are presented for different combinations of external credit assessment institutions (ECAIs) that banks may choose to risk weight their exposures. Three main results emerge from the analysis. First, although the use of different ECAIs leads to significant differences in minimum capital requirements, these differences never exceed, on average, 10% of EMU banks’ capital requirements for corporate, bank, and sovereign exposures. Second, the standardized approach to credit risk provides a small regulatory capital incentive for banks to use several ECAIs to risk weight their exposures. Third, the minimum capital requirements for the corporate, bank, and sovereign exposures of EMU banks will be higher in Basel II than in Basel I. I also show that the incentive for banks to engage in regulatory arbitrage in the standardized approach to credit risk is limited.<p><p>The fourth and final chapter analyses the effect of soliciting a rating on the rating outcome of banks. Using a sample of Asian banks rated by Fitch Ratings, I find evidence that unsolicited ratings tend to be lower than solicited ones, after accounting for differences in observed bank characteristics. This downward bias does not seem to be explained by the fact that better-quality banks self-select into the solicited group. Rather, unsolicited ratings appear to be lower because they are based on public information. As a result, they tend to be more conservative than solicited ratings, which incorporate both public and non-public information.<p> / Doctorat en sciences économiques, Orientation économie / info:eu-repo/semantics/nonPublished

An investigation of the bombing of automated teller machines (ATMs) with intent to steal cash contentof ATMs. This is inclusive of the impact on society (banks clients) and banking institutions as well as the danger it poses to the general public and public and private law enforcement personnel. / (M.Tech. (Security Management))

The emerging financial industry of asset-backed short-term finance was investigated by this study. Literature indicated that banks, locally and globally, are forced by regulation and the use of information technology, to rely less on human judgement and more on programmed decision-making, when evaluating loan applications. This leads to time-consuming processes with non-standard loan applications and loss of opportunities for business persons. Asset-backed short-term finance is a market response to this tendency. Due to the emerging nature of this industry, no previous academic description of or investigation into this industry could be found – a gap in academic literature which this study aims to fill. The industry is strategically positioned in relation to banks by focusing on functionality for urgent non-standard loan applications (period between application and decision, and access to decision-makers) as value proposition, where banks are found lacking. Relatively high interest rates form the profit proposition, as firms in this industry have limited access to funds. Collateral is central as risk-mitigating strategy, forming a part of the profit proposition. The people proposition is essential, as the industry is distinguished by individualised decision-making. A survey among customers of this industry identified four clusters of potential customers: The first had no needs unfulfilled by banks, while the other three clusters were attracted by either functionality, or the evaluation of collateral in contrast to repayment ability, or a combination of the two. A survey among providers revealed hesitance to supply information and a low level of agreement on strategic matters – possibly due to the emergent nature of the industry. It is asserted that the basis for further study was laid. / Business Management / D. Com. (Business Management)