This study examined the determinants of commercial bank liquidity in South Africa. The panel regression approach was used, applying panel data from twelve commercial banks over the period 2006 to 2016. A quantitative research method was used to investigate the relationship between bank liquidity and some microeconomic and bank-specific factors and between bank liquidity and selected macro-economic factors. The regression analysis for four liquidity ratios was conducted using the pooled ordinary least squares regression, fixed effects, random effects and the generalised methods of moments. However, the system generalised methods of moments approach was preferred over the other methods because it eliminated the problem of endogeneity. Results show that capital adequacy, size and gross domestic product have a positive and significant effect on liquidity. Loan growth and non-performing loans had a negative and significant effect on liquidity. Inflation had both a positive and a negative but an insignificant effect on liquidity. The study concluded that South African banks could enhance their liquidity positions by tightening their loan-underwriting criteria and credit policies. Banks should improve their credit risk management frameworks to be more prudent in their lending practices to improve the quality of the loan book to enhance liquidity. They also need to grow their capital levels by embarking on efficient revenue enhancements activities. Banks may also to look at their clients on an overall basis and not on transaction bases, and they need to improve non-interest revenue by introducing innovated products. The South African Reserve Bank could push for policies that might enhance capitalisation by ensuring that the sector is consolidated and thus merging smaller banks to create banks with stronger balance sheets and stronger capital base. This study contributes to the empirical research repository on the determinants of liquidity and more specifically, it identified the significant factors that affect South African commercial bank liquidity. Identifying the determinants of South African commercial bank liquidity will provide the South African Reserve Bank with insight into ways of enhancing liquidity management reforms, to improve the sector’s liquidity management practices and help to maintain a sound and liquid banking sector. / Business Management / M. Com. (Business Management)

This study aimed to develop a causal chain that illustrates the path through which a variety of factors influence consumer financial vulnerability. In order to achieve the stated aim, it was necessary to firstly identify the factors that gave rise to consumers being financially vulnerable. Secondly, the nature of the causal chain between the identified factors was determined. Thirdly, the causes of consumer financial vulnerability according to key informants in the financial services industry were determined. Finally, based on the results of the first three stages, possible explanations for consumer financial vulnerability were provided. Before the construction of the causal chain could be explored, a theoretical framework regarding household financial position as well as financial attitudes and behaviours was provided. The theoretical framework was supported by a description of the linkages through which consumers function and transact in an economy by applying chain reasoning. The chain reasoning was extended by providing financial statements reflecting the results of consumers’ interactions in the macroeconomy with an extract from the national accounts of South Africa presenting the income statements, balance sheets and relevant financial ratios of consumers for the period in which the research was conducted (2008 to 2009). For this study, the explanatory sequential mixed methods design was deemed appropriate to achieve the proposed research objectives. The research process firstly consisted of a quantitative strand where the possible causes for consumer financial vulnerability were identified after which the results were validated with data obtained in the second phase by means of four focus group discussions. To determine the factors giving rise to and establish the causal chain of overall consumer financial vulnerability, regression analysis was conducted. Based on the results of the regression analysis, it became evident that the financial vulnerability chain is not a singular linear process but rather a non-linear process (with contemporaneous and singular linkages) with a variety of factors influencing financial vulnerability, but also influencing each other over time. / Management Accounting / D. Accounting Science

This study aimed to develop a causal chain that illustrates the path through which a variety of factors influence consumer financial vulnerability. In order to achieve the stated aim, it was necessary to firstly identify the factors that gave rise to consumers being financially vulnerable. Secondly, the nature of the causal chain between the identified factors was determined. Thirdly, the causes of consumer financial vulnerability according to key informants in the financial services industry were determined. Finally, based on the results of the first three stages, possible explanations for consumer financial vulnerability were provided. Before the construction of the causal chain could be explored, a theoretical framework regarding household financial position as well as financial attitudes and behaviours was provided. The theoretical framework was supported by a description of the linkages through which consumers function and transact in an economy by applying chain reasoning. The chain reasoning was extended by providing financial statements reflecting the results of consumers’ interactions in the macroeconomy with an extract from the national accounts of South Africa presenting the income statements, balance sheets and relevant financial ratios of consumers for the period in which the research was conducted (2008 to 2009). For this study, the explanatory sequential mixed methods design was deemed appropriate to achieve the proposed research objectives. The research process firstly consisted of a quantitative strand where the possible causes for consumer financial vulnerability were identified after which the results were validated with data obtained in the second phase by means of four focus group discussions. To determine the factors giving rise to and establish the causal chain of overall consumer financial vulnerability, regression analysis was conducted. Based on the results of the regression analysis, it became evident that the financial vulnerability chain is not a singular linear process but rather a non-linear process (with contemporaneous and singular linkages) with a variety of factors influencing financial vulnerability, but also influencing each other over time. / Management Accounting / D. Accounting Science