Thesis (MDF)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: South Africa has experienced a significant growth in household unsecured credit extension, igniting concerns around the potential negative impact of household indebtedness on the stability of the banking system. With the use of correlation and ordinary least squares, the study attempts to prove a relationship between growth in unsecured lending (dependent variable) and consumption, lending rates and de-regulation (independent variables). Although there is a correlation between growth in unsecured lending and interest rates, this was not statistically significant. The study also found a strong relationship between unsecured lending and the other independent variables. Due to income and wealth inequality exacerbated by the past political dispensations as well as continued rise in the cost of living, unsecured lending provides a source of supplementary income that allow households to smooth their consumption expenditure over their life-cycle. On a longerterm basis, the country needs to gear itself to focus primarily on channelling resources towards productive investments. Quality education and skills as well as a culture of entrepreneurship and wealth creation should be cultivated at a young age.

Thesis ((LLD (Law))--University of Stellenbosch, 1996. / 424 leaves single sided printed, preliminary pages and numbered pages 1-356. Includes bibliography, digitized at 300 dpi (OCR), used Bizhub 250. / ENGLISH ABSTRACT: The documentary credit is one of the most important methods of payment utilised in international trade. This versatile instrument is encountered in a variety of forms. In its simplest form it is an undertaking by a bank given on application by a buyer-importer (the bank's client) to pay the seller-exporter (the beneficiary) against delivery of stipulated documents. It has two essential characteristics: (i) the bank's undertaking to pay the beneficiary is independent of the contract of sale and the contract between the bank and its client; and (ii) the bank will pay only against the precise documents stipulated in the credit. In Chapter One the different relationships established between the parties involved are dealt with against this background, and the different types of credits are discussed. Documentary credits are, comparatively speaking, modern instruments. Possible historical origins are explored briefly in Chapter Two. Documentary credits are virtually invariably applied for and issued subject to the Uniform Customs and Practice for Documentary Credits (the UCP). The UCP is a set of rules formulated by the International Chamber of Commerce. The modern history of documentary credits as reflected in the development of the UCP is discussed in Chapter Three. The legal nature of the UCP is analysed from a civilian, common-law and South African perspective in Chapter Four. The legal nature of the relationship between the bank and the beneficiary is the focal point of Chapter Five. The question is approached from a civilian (especially German and Dutch), common-law (especially English and American) and South African point of view. Special attention is devoted to the ability (or inability) of the traditional law of contract of the different jurisdictions to provide a theoretical foundation for (i) the independence of the bank's obligation, and (ii) the irrevocability of the bank's undertaking. The conclusion arrived at is that the South African law of contract is able to provide an adequate basis for this relationship in general and these two matters in particular. In the final chapter the defences available to the bank against the beneficiary's claim are scrutinised, as well as the possibility of the bank being interdicted from paying the beneficiary. Related issues such as anti-dissipation interdicts and attachments in the documentary-credit context are also dealt with. These questions are likewise investigated from a civilian, common-law and South African perspective. This investigation leads to the conclusion that the South African law is essentially in harmony with the law elsewhere and that our courts have been successful to date in protecting the integrity of documentary credits. / AFRIKAANSE OPSOMMING: Die dokumentêre kredietbrief is een van die belangrikste betalingsmetodes wat in die internasionale handel aangewend word. Hierdie buigbare middel kan 'n verskeidenheid van vorms aanneem. In sy eenvoudigste vorm is dit 'n onderneming deur 'n bank wat op aansoek van 'n koper-invoerder (die bank se kliënt) aan die verkoper-uitvoerder (die begunstigde) gegee word. Dit het twee essensiele eienskappe: (i) die onderneming van die bank om die begunstigde te betaal is onafhanklik van die koopkontrak sowel as die kontrak tussen die bank en sy klient; en (ii) die bank sal slegs betaal teen lewering van die presiese dokumente vereis in die kredietbrief. In Hoofstuk Een word die verskillende verhoudinge tussen die partye betrokke teen hierdie agtergrond bespreek asook die verskillende tipes kredietbriewe. Dokumentere kredietbriewe is relatief gesproke moderne instrumente. Moontlike historiese oorspronge word kortliks in Hoofstuk Twee verken. Kredietbriewe word bykans sonder uitsondering aangevra en uitgereik onderworpe aan die Uniform Customs and Practice for Documentary Credits (die UCP). Die UCP is 'n stel reels wat deur die Internasionale Kamer van Koophandel opgestel is. Die moderne geskiedenis van kredietbriewe soos in die ontwikkeling van die UCP weerspieel, is die hoofonderwerp van Hoofstuk Drie. In Hoofstuk Vier word die regsaard van die UCP vanuit die perspektief van die regstelsels baseer op die ius civile, die common-law stelsels en die Suid-Afrikaanse reg beskou. In Hoofstuk Vyf word op die regsaard van die verhouding tussen die bank en die begunstigde gefokus. Die aangeleentheid word benader vanuit 'n ius civile (veral Duitse en Nederlandse) perspektief, 'n common-law (veral Engelse en Amerikaanse) perspektief, asook 'n Suid-Afrikaanse perspektief. Besondere aandag word verleen aan die vermoe (of onvermoe) van die tradisionele kontraktereg in die verskillende jurisdiksies om 'n teoretiese grondslag daar te stel vir: (i) die onafhanklikheid van die bank se verpligting; en (ii) die onherroepbaarheid van die bank se betalingsonderneming. Daar word tot die gevolgtrekking geraak dat die Suid-Afrikaanse kontraktereg wel in staat is om 'n bevredigende basis vir die verhouding in die algemeen, en hierdie twee aangeleenthede in die besonder, daar te stel. In die laaste hoofstuk word aandag geskenk aan die verwere wat 'n bank teenoor die begunstigde se aanspraak kan opper, asook aan die moontlikheid dat die bank by wyse van interdik belet kan word om die begunstigde te betaal. Verwante aangeleenthede soos interdikte in securitatem debiti en beslagleggings in die konteks van kredietbriewe word ook bygehaal. Hierdie aangeleenthede word eweneens vanuit 'n ius civile, common-law, en Suid-Afrikaanse perspektief benader. Die ondersoek lei tot die gevolgtrekking dat die Suid-Afrikaanse reg breedweg beskou in harmonie is met ander stelsels en dat ons howe die integriteit van kredietbriewe tot dusver suksesvol beskerm het.

Submitted in partial fulfilment of the requirements for degree Master of Management in Finance and Investments in Wits Business School of the University of the Witwatersrand / This research paper examines an economy with debt and discusses the mechanism through which a financial crisis may arise, taking into account the business cycle theories as advocated by amongst others; Karl Marx, Friederich Hayek, and John Keynes. It is found that there are various channels through which financial crises may arise. Secondly, this research paper investigates the mechanism through which bank credit propagates and prolongs the business cycle. The analysis of the data reveals that post the crisis, recoveries are slower in developed nations versus developing nations and that the deeper the recession, the longer it takes for a country to recover. Thirdly, this research paper determines the critical debt level at which economies will start to recover, following a period of economic fragility. Finally, recommendations which could contribute towards the mitigation of causes and/or effects of economic crisis are made. Key words: Bank Credit, Business Cycle / GR2018

Text in Afrikaans / Professionele etiek word nie altyd in ag geneem met besigheidsbesluite nie. Die vordering van kredietversekeringspremies is waarskynlik 'n voorbeeld daarvan. Die uitneem van kredietversekering is dikwels 'n voorwaarde vir die verlening van krediet deur sommige meubelhandelaars. Geweldige finansiele voordele wat voortspruit uit kredietversekeringskemas lei tot uitbuiting van die publiek deur sekere meubelhandelaars. Die verskillende kredietversekeringskemas wat in die meubelhandel toegepas word, voldoen nie aan die vereistes van die Woekerwet, 1968, en die Versekeringswet, 1943, nie. Hierdie oortredings het dikwels 'n wesenlike uitwerking op die geopenbaarde finansiele inligting van verskeie meubelhandelaars. Dit is die ouditeur se verantwoordelikheid om die statutere vereistes met die vordering van kredietversekeringspremies in ag te neem, aangesien dit 'n onwettige optrede, asook 'n onreelmatigheid kragtens algemeen aanvaarde ouditstandaarde is. Die ouditeur behoort toepaslik verslag te doen oor gevolglike wanvoorstellings van die finansiele inligting van die betrokke meubelhandelaars. Hierdie verantwoordelikheid word egter nie deur alle ouditeure nagekom nie. / The taking out of credit insurance is often a condition for the granting of credit by certain furniture traders. Enormous financial gains arising from credit insurance schemes result in exploitation of the public by certain furniture traders. Various credit insurance schemes in the furniture trade contravene the Usury Act, 1968, and the Insurance Act, 1943. These contraventions often materially affect financial information disclosed by certain furniture traders. It is the auditor's responsibility to consider the statutory requirements for the collection of credit insurance premiums, as this is an illegal act and an irregularity in terms of general accepted auditing standards. The auditor's duty is to appropriately report on resulting misrepresentations of financial information of such furniture traders. Some auditors however, do not comply with this responsibility. / Auditing / M. Compt. (Auditing)

M.Com. (Strategic Management) / Please refer to full text to view abstract

Thesis (M.Sc.(Agricultural Economics)) -- University of Limpopo, 2015 / Capital is one of the most important factors of production. In South Africa, among other things, lack of finance is one of the fundamental problems hampering production, productivity and income of rural farm households. Smallholder farmers in South Africa face many challenges in accessing financial services, despite the numerous reforms undertaken by the government to transform smallholder agriculture and improve its contribution to rural income, food security and employment. Many rural farmers have remained in poverty with limited capacity to access means of production like credit to militate against hunger and poverty. The aim of the study was to analyse the determinants of loan acquisition from the Land Bank of South Africa by smallholder farmers in peri-urban areas of Mopani District in Limpopo province. The objectives were to identify the constraints smallholder farmers face in accessing credit, to analyse the determinants of loan acquisition among smallholder farmers and to profile loan acquisitions of the farmers based on their socio-economic characteristics. The study used primary data, which was collected through a field survey. The method that was used to collect information was face-to-face interviews using structured questionnaires. The study employed the snowball sampling technique in its data collection strategy due to the fact that the population size was unknown due to the sensitivity of the study. Smallholder farmers were classified as beneficiaries and non-beneficiaries of the Land Bank. The total sample size comprised 62 smallholder farmers from the peri-urban areas of Tzaneen and Giyani of Mopani District, Limpopo province. The data was captured into the Statistical Package for Social Sciences (SPSS). Principal component analysis was carried out so as to get the principal factors or new uncorrelated variables that affect the ability of smallholder farmers to access credit from the Land bank and it was also use to profile the farmers according to the socio-economic variables. After carrying out the principal component analysis, probit analysis was then used to determine the relationship between the socio-economic characteristics of smallholder farmers and their ability to access credit. The principal component analysis (PCA) extracted important information from the data table and expressed the information as a set of new orthogonal variables called principal components. The PCA reduced the original variables to six (6) principal components. The six (6) principal components were labelled as; component 1 (Old-experience smallholder farmers), component 2 (business-oriented smallholder farmers), component 3 (part-time smallholder farmers), component 4 (smallholder farmers who receive grants based on gender), component 5 (smallholder farmers with fixed assets and their distance to the nearest town) and component 6 (smallholder farmers who belong to cooperatives). The smallholder farmers where classified and ranked into this six components based on their level of accessibility to agricultural credit from the Land Bank. A majority of the smallholder farmers involved in the study were ranked lowly on their level of accessibility to agricultural credit from the Land Bank; they were classified under the old and experienced smallholder farmers. Probit regression result indicated that the variables gender, education, farm income, pension, land size, cooperative, fixed assets and registered business had a significant positive influence on smallholder farmers’ accessing agricultural credit from the Land Bank in the last three years. In addition, marital status, farming experience, off-farm income, loose assets, farm commodity and farm record had an insignificant positive influence. The probit result also showed that the variables age had a significant negative influence on smallholder farmers’ accessing agricultural credit. In addition, household size, employment, distance to the nearest town and farmers’ association had an insignificant negative influence. Based on the results of the study, it is recommended that the government and other institutions could design agricultural credit programmes that are promptly responsive to the needs of the smallholdCapital is one of the most important factors of production. In South Africa, among other things, lack of finance is one of the fundamental problems hampering production, productivity and income of rural farm households. Smallholder farmers in South Africa face many challenges in accessing financial services, despite the numerous reforms undertaken by the government to transform smallholder agriculture and improve its contribution to rural income, food security and employment. Many rural farmers have remained in poverty with limited capacity to access means of production like credit to militate against hunger and poverty. The aim of the study was to analyse the determinants of loan acquisition from the Land Bank of South Africa by smallholder farmers in peri-urban areas of Mopani District in Limpopo province. The objectives were to identify the constraints smallholder farmers face in accessing credit, to analyse the determinants of loan acquisition among smallholder farmers and to profile loan acquisitions of the farmers based on their socio-economic characteristics. The study used primary data, which was collected through a field survey. The method that was used to collect information was face-to-face interviews using structured questionnaires. The study employed the snowball sampling technique in its data collection strategy due to the fact that the population size was unknown due to the sensitivity of the study. Smallholder farmers were classified as beneficiaries and non-beneficiaries of the Land Bank. The total sample size comprised 62 smallholder farmers from the peri-urban areas of Tzaneen and Giyani of Mopani District, Limpopo province. The data was captured into the Statistical Package for Social Sciences (SPSS). Principal component analysis was carried out so as to get the principal factors or new uncorrelated variables that affect the ability of smallholder farmers to access credit from the Land bank and it was also use to profile the farmers according to the socio-economic variables. After carrying out the principal component analysis, probit analysis was then used to determine the relationship between the socio-economic characteristics of smallholder farmers and their ability to access credit. ii The principal component analysis (PCA) extracted important information from the data table and expressed the information as a set of new orthogonal variables called principal components. The PCA reduced the original variables to six (6) principal components. The six (6) principal components were labelled as; component 1 (Old-experience smallholder farmers), component 2 (business-oriented smallholder farmers), component 3 (part-time smallholder farmers), component 4 (smallholder farmers who receive grants based on gender), component 5 (smallholder farmers with fixed assets and their distance to the nearest town) and component 6 (smallholder farmers who belong to cooperatives). The smallholder farmers where classified and ranked into this six components based on their level of accessibility to agricultural credit from the Land Bank. A majority of the smallholder farmers involved in the study were ranked lowly on their level of accessibility to agricultural credit from the Land Bank; they were classified under the old and experienced smallholder farmers. Probit regression result indicated that the variables gender, education, farm income, pension, land size, cooperative, fixed assets and registered business had a significant positive influence on smallholder farmers’ accessing agricultural credit from the Land Bank in the last three years. In addition, marital status, farming experience, off-farm income, loose assets, farm commodity and farm record had an insignificant positive influence. The probit result also showed that the variables age had a significant negative influence on smallholder farmers’ accessing agricultural credit. In addition, household size, employment, distance to the nearest town and farmers’ association had an insignificant negative influence. Based on the results of the study, it is recommended that the government and other institutions could design agricultural credit programmes that are promptly responsive to the needs of the smallholder farmers. It was also recommended that the Department of Agriculture, Forestry and Fisheries (DAFF) should ensure that the agricultural extension officers are well equipped to be able to disseminate their information to farmers irrespective of their location

AFRIKAANS: Die studie ondersoek die verband tussen huishoudingskuld in Suid-Afrika en finale verbruiksbesteding deur huishoudings en daar is bevind dit is 'n wedersydse, moeilik voorspelbare en nie 'n eenvoudige proses nie, omdat verskeie faktore in die ekonomie dit beïnvloed. Die stand van die ekonomie en veral die persepsie van die verbruiker is belangrike faktore. Geld het 'n evolusie ondergaan en minder tasbaar geword as gevolg van krediet. Dit het beheer daarvan moeilik gemaak. Die koste van krediet is 'n geleentheid vir die Sentrale Bank om beheer oor geldskepping uit te oefen. Monetêre beleid skep 'n effektiewe omgewing vir die ekonomie om te funksioneer. Beleid beheer die vraag en aanbod van geld direk (deur rentekoerse) of indirek ( deur vraag- en aanbodfaktore te manipuleer). Geld in die moderne ekonomie verwys na krediet en veral na krediet van huishoudings. Totale uitstaande krediet van huishoudings, en die samestelling daarvan het oor die afgelope 25 jaar aansienlik verander. Dit toon op 'n verandering in die mag van die Sentrale Bank oor die geldskeppingsproses. Bevolkingswelvaart word gemeet aan die vermoë van huishoudings om inkome te bestee. Finale verbruiksbesteding deur huishoudings is die belangrikste deel van totale besteding in die ekonomie. Suid-Afrika klassifiseer finale verbruiksbesteding deur huishoudings volgens die 1993 Stelsel van Nasionale Rekeninge. Verskille tussen die 1993 en 1968 weergawes sluit verskille in ten opsigte van tipe klassifikasie ( doelwit versus duursaamheid) en tussen werklike finale verbruiksbesteding (finale verbruiksbesteding deur huishoudings plus individuele verbruik deur die owerheid) en finale verbruiksbesteding deur huishoudings. Verskillende teorieë bestaan met betrekking tot die effek van rentekoerse, inflasie en finansiële liberalisering op besteding, verbruik oor die lewensiklus, die verbruiksbestedingsfunksie, die verwantskap tussen inkome en besteding en marginale verbruiksbesteding. Die verloop van finale verbruiksbesteding deur huishoudings in Suid¬Afrika oor die afgelope 25 jaar toon dat die samestelling heelwat verander het soos die ekonomie deur verskillende fases gegaan het. Besteding aan duursame en semi-duursame goedere het toenemend gedaal, terwyl besteding aan veral dienste, skerp gestyg het. Die algemene beskikbaarheid van krediet het veroorsaak dat huishoudings al meer op skuld begin leef het gedurende die negentigs. Die gevolgtrekking is dat, in teenstelling met vroeë bevindings, huishoudings nie noodwendig slegs duursame goedere finansier met krediet nie, maar ook nie-duursame goedere en dienste. Die hoë vlakke van krediet en die koste van krediet, het oor die lang termyn 'n negatiewe effek op besteding. Die verband tussen huishoudingskuld in Suid-Afrika en finale verbruiksbesteding deur huishoudings hang af van die faktore wat bestedingsbesluite deur huishoudings beïnvloed, wat monetêre en fiskale beleid insluit. Die toepassing van monetêre beleid werk deur die transmissiemeganisme, wat deur verskeie kanale werk. Die kredietkanaal bestaan uit die balansstaatkanaal en die bankleningskanaal. Die balansstaatkanaal verduidelik die werking van 'n verandering in monetêre beleid op die welvaart van die bevolking. Die bankleningskanaal werk direk deur rentekoerse en banklenings. Verskillende denkskole ondersteun verskillende kanale. Die endogene/eksogene geld vraagstuk lei tot die gevolgtrekking wat gemaak is, dat die voorraad van kredietgeld altyd vraag-bepaald is en dat die aanbod daarvan slegs indirek deur die Sentrale Bank beheer kan word deur die omstandighede in die geldmark (wat rentekoerse affekteer) te verander. ENGLISH: The study investigates the relationship between household debt in South Africa and final consumption expenditure by households and it was found to be an interrelated, difficult process that is not easy to predict, because various factors in the economy influence both. The most important ones are the state of the economy and the perception of the consumer. Money has evolved into something less tangible as a result of credit. That increased the difficulty of control over it. The cost of credit provided an opportunity to the Central Bank to control the creation of money. Monetary policy creates an efficient environment in which the economy can function. Policy control the supply and demand of money directly (through interest rates) or indirectly (through manipulation of the supply and demand factors). Money in the modem economy means credit and specifically credit of households. Total outstanding credit of households and the composition of credit changed dramatically over the last 25 years. This is an indication of a change in the control of the Central Bank over the money creation process. The wealth of the nation is measured by the ability of households to spend income. Final consumption expenditure by households is the most important part of total consumption in the economy. South Africa classifies final consumption expenditure by households according to the 1993 System of National Accounts. Differences between the 1993 and 1968 versions are with respect to type of classification (purpose versus durability) and between actual final consumption and final consumption expenditure by households. There are different theories regarding the effect of interest rates, inflation, financial liberalisation on consumption, consumption over the life-cycle, the consumption function, the relationship between income and consumption and marginal consumption expenditure. The trend in final consumption expenditure by households in South Africa over the last 25 years shows the changes as a result of the different phases of the economy. Consumption of durable and semi-durable goods have decreased continually, while demand for services increased sharply. Households increasingly financed expenditure with credit during the nineties, being the result of the availability of credit. The conclusion is that households not only finance durable goods with credit but also non-durable goods and services, which is contradictory to previous conclusions. The high levels of credit and the cost of credit have a negative effect on consumption over the long term. The relationship between household debt in South Africa and final consumption expenditure is determined by factors that influence decisions about spending, which include monetary and fiscal policy. The influence of monetary policy can be described through the transmission mechanism, that work through different channels. The credit channel consists of the balance sheet channel and the bank lending channel. The balance sheet channel explains the effect of changes in monetary policy on the wealth of the nation. The bank lending channel work through interest rates and bank loans. Different schools of thought support different channels. The exogenous/endogenous money supply debate lead to the conclusion that the supply of credit money is always demand determined and that control by the Central Bank is indirect through the influence of supply and demand conditions in the money market. / Dissertation (MCom (Economics))--University of Pretoria, 2002. / Economics / unrestricted

The earlier theories considered trade credit as a substitute for bank credit. Recent theories suggest that bank credit and trade credit can also be considered as two complementary sources of financing. By using South African panel data from 2007 to 2015, the study examines if the problem of financial inclusion in South Africa can be mitigated by utilising trade credit data. The empirical findings using trade credit at current period are consistent with the earlier theories of trade credit that trade credit and bank credit are substitutes, but the model was not robust to estimation techniques. The study also used the lagged trade credit as a variable of interest and found that it is positively related to bank credit. This means that the trade credit data from the previous period can facilitate access to bank credit. Therefore, the information from trade credit can serve as a signal about firms’ quality and thus facilitates access to bank finance. / Economics / M. Com (Economics)

LL.M. (Commercial Law) / Please refer to full text to view abstract

Dpartment of Agricultural Economics and Agribusiness / MSc.AEC