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This study investigates the main drivers of excess liquidity in the financial sector of Lesotho using Vector Auto Regression (VAR) analysis. The study also undertakes a comparative analysis of Lesotho and CMA economies for economic and financial sector characteristics to benchmark and assist policy recommendation. The results of the study suggest that excess liquidity in Lesotho’s financial sector is driven by undeveloped financial sector as reflected by significant private sector credit to GDP ratio in the results, government expenditure and central bank activities in the open market operations, together with past levels of excess liquidity in the model. Compared to CMA, financial intermediary in Lesotho is relatively undeveloped with government dominating economic activity. The banking sector is observed to be non-competitive for deposits as hinted by the wide intermediation margin compared to other CMA countries.

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M.Comm. / The Financial Sector Charter is a transformation charter in terms of the Broad-based Black Economic Empowerment (BBBEE) Act (Act 53 of 2003). The Charter is a voluntary initiative by the financial sector to address racially based income and social inequalities in South Africa. It aims to encourage black economic participation through its six pillars. The Charter came into effect in January 2004 as a result of the Financial Sector Summit hosted by the National Economic Development and Labour Council (NEDLAC), the multilateral social dialogue forum on social, economic and labour policy. The Nedlac partners – government, business, labour and community constituencies – negotiated the Financial Sector Summit Agreements on transforming the financial sector and signed the Summit declaration on 20 August 2002. The Charter commits its participants to 'actively promoting a transformed, vibrant, and globally competitive financial sector that reflects the demographics of South Africa, and contributes to the establishment of an equitable society by effectively providing accessible financial services to black people and by directing investment into targeted sectors of the economy. Financial institutions affected by the Charter include banks, long-term insurers, shortterm insurers, re-insurers, collective investment schemes, investment managers, retirement funds, and licensed exchanges. Any other institution in the financial sector may opt to participate in the Charter. The objectives of the Charter are to: • constitute a framework and establish the principles upon which BEE will be implemented in the financial sector; • provide the basis for the sector’s engagement with other stakeholders; • establish targets and unquantified responsibilities in respect of each principle; • outline processes for implementing the charter and mechanisms to monitor and report on progress. Progress on the Financial Sector Charter Scorecard in the South African Banking Sector In pursuit of these objectives, the Charter commits financial institutions in the sector to transforming in the areas of: • Human resource development; • Procurement of goods and services; • Access to financial services; • Empowerment financing; • Ownership and control; • Corporate social investment. The study provides an overview on the above objectives of the Charter and seeks to measure and assesses in detail the progress of the banking sector regarding the six key areas of the FSC as outlined in the FSC Scorecard against the set targets of 2008. The scorecards analysed would be those that have been submitted to the Council as at the 31 December 2006. • Amalgamated Banks of South Africa (Absa Group); • FirstRand Group (including First National Bank); • Nedbank Group; • Standard Bank Group. The study will assess the performance of each bank, highlighting the positives and providing recommendations where there are shortfalls. The results will be consolidated to give an overall performance overview of the banking sector in South Africa in meeting transformational challenges faced by the country. According to the South African Reserve Bank (2008:106) the financial services sector including insurance, real estate and business services added 22% to the Gross Domestic Product (GDP) in 2007 making it the biggest contributor. It is therefore imperative for this study to be undertaken to assess and ensure that the sector commits to the process of transformation in addressing the past imbalances with regard to inclusive participation by all in the South African economy.

Le secteur financier a émergé afin d’apporter une réponse à certaines imperfections microéconomiques, principalement de nature informationnelle. Trois rôles principaux ont été identifiés dans la littérature : la sélection et le suivi des emprunteurs (voir par exemple Grossman et Stiglitz (1980) ou Boot et Thakor (1993)), la création d’un actif insensible à la production d’informations privées, à savoir les dépôts bancaires (Gorton et Pennacchi (1990)), et la fourniture d’une assurance contre les besoins de liquidité en présence d’incertitude sur les préférences quant au moment choisi pour la consommation (Diamond et Dybvig (1984)). Mais, si le secteur financier constitue une réponse à certaines défaillances du marché, il opère en présence de certaines autres imperfections microéconomiques qui peuvent réduire son efficacité. Cette thèse s’attache à étudier plus particulièrement deux d’entre elles : le caractère incomplet des marchés et les problèmes d’aléa moral des gestionnaires des banques. L’existence de ces imperfections implique une externalité dans le fonctionnement du secteur financier qui peut justifier une réglementation. Afin que la régulation puisse permettre de traiter ces inefficacités, il est crucial d’identifier d’abord quelles sont les défaillances de marché responsables de l’inefficacité et à travers quels mécanismes elles influent sur les choix des agents. Cette analyse théorique représente l’objectif principal de cette thèse. / The financial sector has emerged because financial institutions help overcome some microeconomic imperfections, mainly informational. Three main roles have been identified in the literature: the screening and monitoring of borrowers (see for instance Grossman and Stiglitz (1980) or Boot and Thakor (1993)), the creation of an informational-insensitive asset out of their liabilities (Gorton and Pennacchi (1990)), and the provision of an insurance against liquidity needs in the presence of uncertainty on the preferences over the timing of consumption (Diamond and Dybvig (1984)). But, if the financial sector has emerged as an answer to some market failures, it is operating in the presence of some other micro imperfections that can reduce its efficiency. This dissertation focuses on two of them: incomplete markets and moral hazard problems. Their existence implies some externality in the functioning of the financial sector that may justify a regulation. In order for the regulation to overcome those inefficiencies, it is crucial to first identify what are those market failures and through which mechanisms they affect the choices of agents. This theoretical analysis is the main objective of this dissertation.

This thesis will examine Britain’s role within the European Union through an analysis of the banker bonus cap. British politicians challenged the cap on the grounds that the required fixed ratio between fixed and variable pay would negatively impact the competitiveness and stability of European financial services in the long-run. While Britain’s legal challenge was primarily motivated by concerns about cap’s effects on London specifically, it also correctly predicted the cap’s detrimental consequences. The decision of the European Court of Justice to reject Britain’s challenge despite its legitimacy reflects the gradual marginalization of British interests within the EU’s policymaking process. Since the financial crisis of 2008, Britain’s relationship with the European Union has further deteriorated as the Eurozone struggles to stabilize its currency union. Meanwhile, Euroskepticism has moved from the periphery of Britain’s political arena to the mainstream. The forces driving Britain and Europe apart are particularly apparent in the realm of financial regulation. British politicians display an increasing tendency to challenge the EU’s efforts to regulate financial services within Europe. The central tension which emerges from this dynamic is that, while Euroskepticism may be driving Britain’s politicians away from political integration with the EU, the success of Britain’s financial services sector remains fundamentally dependent on access to the common market. Ultimately, an analysis of Britain’s response to the cap in the larger context of its relationship with Europe demonstrates that Britain’s economic wellbeing relies on Britain’s politicians demonstrating a greater willingness to commit to the political dimension of the EU.

This mini-dissertation investigates the influence that an outcome-based remuneration scheme can have on productivity in the financial sector. It focuses on four dimensions that were used to determine if productivity levels could be affected; all of these four dimensions could be linked back to the performance of the employee and employer. The four dimensions were units produced, overtime, absenteeism and till cash up which speaks to the quality of transactions that were processed. When these four dimensions were tested statistically the results tended to suggest that there is a positive association with productivity and an outcome-based remuneration scheme. This simply means that an outcome-based remuneration scheme increases productivity levels in the workplace, more specifically in the financial sector; the literature review also supports this statement. The study also deals briefly with the advantages and disadvantages of a pay for performance scheme as well as when designing a pay for performance scheme what are the key design elements. It also briefly touches on the implementation of such a scheme, whether pay for performance is sustainable over a period of time and what are the most common types of pay for performance schemes. / Thesis (MBA)--North-West University, Potchefstroom Campus, 2013.

This mini-dissertation investigates the influence that an outcome-based remuneration scheme can have on productivity in the financial sector. It focuses on four dimensions that were used to determine if productivity levels could be affected; all of these four dimensions could be linked back to the performance of the employee and employer. The four dimensions were units produced, overtime, absenteeism and till cash up which speaks to the quality of transactions that were processed. When these four dimensions were tested statistically the results tended to suggest that there is a positive association with productivity and an outcome-based remuneration scheme. This simply means that an outcome-based remuneration scheme increases productivity levels in the workplace, more specifically in the financial sector; the literature review also supports this statement. The study also deals briefly with the advantages and disadvantages of a pay for performance scheme as well as when designing a pay for performance scheme what are the key design elements. It also briefly touches on the implementation of such a scheme, whether pay for performance is sustainable over a period of time and what are the most common types of pay for performance schemes. / Thesis (MBA)--North-West University, Potchefstroom Campus, 2013.

Two and a half billion of the world’s working adults are excluded from financial services. The exclusion of people from the formal financial sector has led to the growth of microfinance globally. The importance of financial inclusion is represented through the Sustainable Development Goals in which financial inclusion is an enabler in seven of the 17 goals. In South Africa, stokvels are one of the most important microfinance phenomena, as 11.5-million people are part of a stokvel. The formal financial sector in South Africa has started to target stokvel members through various stokvel accounts and products. Previous literature on stokvels focuses on the demography of stokvels; the features of stokvels; and the history of stokvels. Previous studies have found that the formal sector does not understand stokvel clientele. However, the review of the literature indicates that there is an insufficient analysis of the needs of stokvel members and the how the formal sector can better accommodate their needs. Therefore, this study will explore why South Africans continue to use stokvels and what barriers prevent stokvel members from participating in the formal financial sector. Recommendations will be made to various stakeholder based on the themes identified. This study found that the stokvel members perceived there to be information asymmetry, which they believe is then exploited by the banks. As a result, there is distrust in the formal financial system. Moreover, this study also found that the social interactions in stokvels are changing due to technology. The findings and recommendations in this study can be used by banks and other formal financial institutions to improve the suitability of their product and services. Consequently, financial inclusion will improve as the products and services provided by the formal sector will be better suited to the needs of stokvel members. This study will also provide insights for the South African government, community leaders and The National Stokvel Association of South Africa (NASASA).

The world is in the midst of a new wave of economic development with entrepreneurship and innovation as the catalysts. The ability to continually innovate and to engage in an ongoing process of entrepreneurial action has become the source of competitive advantage and a lack of entrepreneurial actions in today’s global economy could be a recipe for failure (Kuratko, 2009). Organisations need to keep abreast of developments in their business environment and continually identify and evaluate opportunities if they are to prosper in a rapidly changing world, and they must become more entrepreneurial as their corporate environments become more dynamic and increasingly competitive (Shepherd, Patzelt and Haynie, 2009). Opportunity recognition remains an important issue for academic research. This research report aims at making a modest contribution to further understand opportunity recognition behaviour of employees within their existing work environment. The research focussed on employees working in the South African financial sector, and examined their perceptions of opportunity recognition behaviours and motivators. An understanding of these important behaviours and motivators will allow senior management of corporate entities to have a better understanding of the opportunity recognition processes by employees, and to put in place mechanisms that facilitate and support these processes in search of robust entrepreneurial activities. Apart from the economic rationale, the motivations for studying employees’ behaviour come mainly from the limited number of studies of this nature that have been carried out in emerging economies. The study is performed using data from 195 employees drawn from 23 financial sector companies in South Africa. This research concludes that South African financial sector employees perceive themselves as showing strong levels of opportunity recognition behaviours, and opportunity recognition motivators are also perceived important in promoting entrepreneurial initiatives. The empirical study reveals that there is a significant positive relationship between opportunity recognition behaviours and the frequency of opportunities recognised. vi Success is found to have a moderating effect on the relationship between frequency of opportunity recognition and perceptions of opportunity recognition behaviours. Respondents, who have a low or medium number of successfully implemented opportunities, recognise a higher number of opportunities as their opportunity recognition behaviour increases. However, those respondents with a high number of successfully implemented opportunities tend to show a slight decrease in the total number of opportunities identified as their opportunity recognition behaviour increases. A cluster analysis was carried out to provide a deeper understanding of opportunity recognition behaviours and motivators, and three distinct clusters with differing characteristics were identified. These clusters are named according to the characteristics displayed by the respective clusters (corporate achievers, mavericks, and doers). The corporate achievers cluster tends to perceive high levels of opportunity recognition behaviours and motivators. This high proportion of perceived alignment to company strategy combined with high levels of opportunity recognition behaviours may encourage more of the proposed opportunities to be in line with company strategy, which in turn may lead to the higher proportion of successfully implemented opportunities. The mavericks cluster recognise a large number of opportunities, but are behind the corporate achiever cluster when it comes to the proportion of successfully implemented opportunities and perceive low alignment to company strategy. Although this cluster shows a large proportion of opportunities proposed for their current company, their low perception of alignment to company strategy may mean that the opportunities they recommend do not always fit into the company strategy, which may explain their lower proportion of successfully implemented opportunities. The doers cluster tends to perceive low levels of opportunity recognition behaviour and motivators, as well as low levels of alignment to company strategy. Respondents in this cluster seem to do their work, but show low levels of entrepreneurial orientation.