This research looked at cloud computing in a South African bank. Interviews were conducted in the information technology sector of a major bank in South Arica, as part of a deductive research method, to establish how cloud computing should be understood, what are specific benefits, obstacles, risks and if the benefits outweigh the obstacles and risks. The research demonstrated that cloud computing is a fairly new concept in South African banks especially when it comes to the public cloud. Private clouds are currently in existence, especially in the form of data centres and virtualised services. The research also indicated that benefits outweigh obstacles and risks, with cost seen as the most important benefit in contrast to privacy and security as the most important obstacle to consider. It would be difficult for a bank in South Africa to move into the public cloud and the focus would be to move no-core services into a public cloud and to keep the core services within the bank. It should be noted that the research sample was limited to only one of the major banks in South African and that it would be inaccurate to present the results as a complete view of banks in South Africa. / Dissertation (MBA)--University of Pretoria, 2013. / pagibs2014 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

The Financial Asset Services Division, or FAS, is an integral part of Standard Corporate Investment Bank’s operations. FAS offers high net-worth companies services and products that can generate extra revenues. Diversity is a new dimension that needs to be managed within South African organisations. The contemporary manager might not be equipped to deal with the new and unique set of challenges that accompany diversity related issues. This work aims to provide managers a basis to explore the concept of diversity management by investigating different management theories. This is also the basis of questionnaires put to managers and employees to determine what factors and dimensions influence leadership roles. Having identified these dimensions and factors it is also investigated what implications there are for leadership. Identified problem areas are brought to the reader’s attention as well as recommendations based on sound diversity management principles. This will provide management with a basis from which to effectively manage diversity in the workplace at FAS. / T.F.J. Oosthuizen

D.Litt. et Phil. / This study essentially is about the correlation between finance and economic growth. The research hypothesis postulates a direct causal correlation between bank-intermediated finance and economic growth in South Africa (SA) during the reference period. International research findings give mixed signals on the role, if any, that finance plays in economic growth. In the past, many economic commentators ignored the role of finance in economic growth, or argued that finance had no direct role in economic growth. However, contemporary research tends to assign a positive role for finance in economic growth. This has implications for economic policy-making, because policies which promote bank intermediation indirectly contribute towards enhancing prospects for economic growth, and vice versa. An innovative dimension in the discourse on the finance-economic growth nexus is introduced in this study by means of qualitatively linking bank regulation to economic growth. It is argued in this thesis that bank regulation influences the intensity and scope of the mobilisation and allocation of loanable funds in an economy. If the financial regulatory regime restricts banks from optimising their mobilisation of surplus funds, and the subsequent allocation of credit for productive investment, then the prospects for economic growth will be diminished. On the contrary, financial regulatory policies that promote bank intermediation are also likely to enhance prospects for economic growth. Moreover, financial regulation that unwittingly triggers financial crises, such as bank runs, will be harmful to the performance of the economy. This emphasises that financial regulation should be designed to create an environment in which stability reigns in the financial markets.

Macroeconomic and financial market developments in Zimbabwe since 2000 have led to an increase in many banks‟ overall exposure to liquidity risk. The thesis highlights the importance of understanding and building comprehensive liquidity frameworks as defenses against liquidity stress. This study explores liquidity and liquidity risk management practices as well as the linkages and factors that affected different types of liquidity in the Zimbabwean banking sector during the Zimbabwean dollar and multiple currency eras. The research sought to present a comprehensive analysis of Zimbabwean commercial banks‟ liquidity risk management in challenging operating environments. Two periods were selected: January 2000 to December 2008 (the Zimbabwean dollar era) and March 2009 to June 2011 (the multiple currency era). Explanatory and survey research designs were used. The study applied econometric modeling using panel regression analysis to identify the major determinants of liquidity risk for 15 commercial banks in Zimbabwe. The financing gap ratio was used as the proxy for liquidity risk. The first investigation was on liquidity risk determinants in the Zimbabwean dollar era. The econometric investigations revealed that an increase in capital adequacy reduced liquidity risk and that there was a positive relationship between size and bank illiquidity. Liquidity risk was also explained by spreads. Inflation was positively related to liquidity risk and was a significant explanatory variable. Non-performing loans were not significant in explaining commercial banks‟ illiquidity, which is contrary to expectations. The second investigation was on commercial banks‟ liquidity risk determinants in the multiple currency era by using panel monthly data. The results showed that capital adequacy had a significant negative relationship with liquidity risk. The size of the bank was significant and positively related to bank illiquidity. Unlike in the Zimbabwean dollar era, spreads were negatively related to bank liquidity risk. Again, non-performing loans were a significant explanatory variable. The reserve requirements ratio and inflation also influenced bank illiquidity in the multiple currency regime. In both investigations, robustness tests for the main findings were done with an alternative dependent variable to the financing gap ratio. To complement the econometric analysis, a survey was conducted using questionnaires and interviews for the same 15 commercial banks. Empirical analysis in this research showed that during the 2000-2008 era; (i) no liquidity risk management guidelines were issued by the Reserve Bank of Zimbabwe until 2007. Banks relied on internal efforts in managing liquidity risk (ii) Liquidity was managed daily by treasury (iii) The operating environment was challenging with high inflation rates, which led to high demand for cash withdrawals by depositors (iv) Locally owned banks were more exposed to liquidity risk as compared to the foreign owned banks (v) Major sources of funds were new deposits, retention of maturities, shareholders, interbank borrowings, offshore lines of credit and also banks relied on the Reserve Bank of Zimbabwe as the lender of last resort (vi) Financial markets were active and banks offered a wide range of products (vii) To manage liquidity from depositors, banks relied on cash reserves, calculating and analysing the withdrawal patterns. When faced with cash shortages, banks relied on the daily limits set by the Reserve Bank of Zimbabwe (viii) Banks were lending but when the challenges deepened, they lent less in advances and increased investment in government securities. (ix) Inflation had major effects on liquidity risk management as it affected demand deposit tenors, fixed term products, corporate sector deposit mobilisation, cost of funds and investment portfolios (x) The regulatory environment was not favourable with RBZ policy measures designed to arrest inflation having negative repercussions on banks` liquidity management (xi) Banks had no liquidity crisis management frameworks. During the multiple currency exchange rate system (i) Commercial banks had problems in sourcing funds. They were mainly funded by transitory deposits with little coming in from treasury activities, interbank activities and offshore lines of credit. There was no lender of last resort function by the Reserve Bank of Zimbabwe. (ii) Some banks were still struggling to raise the minimum capital requirements (iii) Commercial banks offered narrow product ranges to clients (iv) To manage liquidity demand from clients, banks relied on the cash reserve ratio, and calculated the patterns of withdrawal, while some banks communicated with corporate clients on withdrawal schedules. (v) Zimbabwe commercial banks resumed the lending activity after dollarisation. Locally owned banks were aggressive, while foreign owned banks took a passive stance. There were problems with non-performing loans, especially from corporate clients, which exposed many banks to liquidity risk. (vi) Liquidity risk management in Zimbabwe was still guided by the Reserve Bank of Zimbabwe Risk Management Guideline BSD-04, 2007. All banks had liquidity risk management policies and procedure manuals but some banks were not adhering to them. Banks also had liquidity risk limits in place but some violated them. Furthermore, some banks were not conducting stress tests. Although all banks had contingency plans in place, none were testing them. Specifically, the research study highlighted the potential sources of liquidity risk in the Zimbabwean dollar and multiple currency periods. Based on the results, the study recommends survival strategies for banks in managing liquidity risk in such environments. It proposes a comprehensive liquidity management framework that clearly identifies, measures and control liquidity risk consistent with bank-specific and the country‟s macroeconomic developments. The envisaged framework would assist banks in dealing with illiquidity in a manner that would be less disruptive and that could render any future crisis less painful. Of importance is the recommendation that the central bank might not need to be too strict or too relaxed, but be moderate in ensuring an enabling regulatory environment. This would help banks to manage liquidity risk and at the same time protect depositors in any challenging operating environment. In both the studied time periods, there were transitory deposits. Generally there is need to inculcate a savings culture in Zimbabwe.

The credit unions in British Columbia have experienced spectacular growth during the last fifteen years. Many new credit unions have come into existence and old ones have increased considerably in size. Different pieces of legislation, Federal as well as Provincial, have been passed to ensure safety of members' savings and efficient management of credit unions. This study is an attempt to evaluate the financial management of credit unions in British Columbia. The evaluation has been made from the standpoint of financial soundness, lending practices, accounting system and system of internal control. Since a credit union is an important institution of consumer credit, a general discussion of consumer credit is presented in the beginning of the study. Consumer credit is a major force in our modern economy. Mass production of goods at low costs has been greatly assisted through the advent of consumer credit financing. Modern credit theory divides the field of credit into three categories: emergency credit, convenience credit and instalment credit. Instalment credit is the most significant of these three in terms of its effect upon the economy. The level of this credit depends on the durables bought on an instalment basis, and the sale of durables depends on discretionary income, expectation of future income, the pattern of distribution of income amongst spending units and the growth of income. The consumer credit market is imperfectly competitive. Credit unions provide a significant portion of consumer lending in Canada. They have experienced a more than proportionate growth in their trend of instalment credit lending as compared with the growth trend of other lending institutions. Since savings is the source of consumer credit, the role of credit unions as saving institutions has been studied. Credit unions now act as depositories for a significant portion of total net savings in Canada. Cooperative central banking in Canada, through a recent development, is becoming increasingly popular. In 1953, a Canadian Cooperative Credit Association was formed to act as an apex organization for all the cooperative central banks in Canada. The financial soundness of a credit union depends on the adequacy of reserves, liquidity, and growth. There are various types of reserves in existence, of which the reserve for bad debts is of material importance. Under the B.C. Credit Unions Act, the provision for bad debt losses has to be kept in liquid form. This seems to be an unnecessary provision because the function of the reserve fund is to absorb losses, and because such losses do not necessitate the payment of cash. Total bad loans have been related to loans outstanding and the reserve fund. The overall position has been studied and is considered to be very satisfactory. For measurement of the growth of credit unions, the time series of savings, membership and loans have been analysed by the Gompertz curve method. The annual increase in all the three factors is at a declining rate. The projection of Gompertz curves indicates that it will be a long time before a period of stability is reached. The liquidity of credit unions is analysed by relating the total funds retained to the legal requirements. In almost all cases funds retained are higher than the legal requirements. The effect of the seasonal pattern of demand for borrowings on liquidity has been studied from the statistics obtained from the books of B.C. Central Credit Union. Since B.C. Central Credit Union is the depository of funds of most of the credit unions in British Columbia, their liquidity is directly related to B.C. Central's. B.C. Central's liquidity has been analysed from the standpoint of lending practices, the extent of exercise of the borrowing rights and its compliance with the statutory requirements. The lending practices of credit unions have been studied from the standpoint of the purposes for which loans have been granted, the nature of security taken, the rate of interest charged, and the terms of repayment of loans. Purchase of durables, and real estate constitute more than 60% of the borrowings from credit unions. The effective rates of interest charged by credit unions have been compared with the rates of other lending institutions. The lending of credit unions is kept reasonably on a short-term basis. In order to study accounting systems and the system of internal control, a number of credit unions in Vancouver were visited. The study was made from the standpoint of three management objectives: namely, managerial decision-making, protection of assets and determination of income. Though the systems in use are thought to be reasonably satisfactory, some small credit unions are not making proper use of them. Throughout the study, recommendations have been made that are thought to be helpful in improving the financial management of credit unions in British Columbia. / Business, Sauder School of / Graduate

Asset management in a commercial banking environment may be viewed as a process of resource allocation. The resources of a bank consist of the funds made available to the bank by its depositors, creditors and shareholders. These funds may be allocated among a variety of earning and non-earning assets. In carrying out this allocation, management must recognize and reconcile the various and often conflicting objectives and requirements of its depositors, its shareholders and the public agencies which regulate its activities. Given these multiple requirements and objectives the senior management of the bank must determine an allocation plan that will provide maximum safety and adequate liquidity for its depositors and an acceptable return for its shareholders. This thesis attempts to demonstrate how bank management can use a mathematical programming model to assist them in formulating short, intermediate and long range plans for the bank's asset management activities. It is shown that such a model is capable of dealing with the multiple goals which represent the bank's objectives and obligations and that the model can be formulated to incorporate the complex interdependencies which exist among the various asset management activities. The solution to the model will represent the most satisfactory course of action available to the bank in terms of its organizational goals. / Business, Sauder School of / Graduate

In conjunction with the recent interest in the liquidity preferences of commercial banks, which is itself part of a new supply theory of money, this thesis investigates the reserve behaviour of Canadian commercial banks from 1920-1939. Several models of bank reserve behaviour are presented including the one to be tested in this thesis. This model differs from the others in that it will be tested with monthly data on individual banks (and hence can explain differences among banks as to the holding of reserves) whereas the others were tested with annual data for a group of banks or a banking system. Since there was no required reserve in Canada prior to March, 1935, there was also no definition of what constituted reserves. This problem had to be investigated before any reserve ratios could be calculated. After calculating some reserve ratios, several interesting observations can be made. The hypothesis that Canadian, commercial banks adhered to a ten per cent required reserve ratio through a gentlemen's agreement within the Canadian Bankers Association was clearly refuted. Also the effect of the establishment of the .Bank of Canada on reserve holdings was noticed. Furthermore, the evidence cast some doubt on the conclusions of George Morrison in his book, Liquidity Preferences of Commercial Banks. The model presented previously was then tested both with monthly data for individual banks and with monthly data for the banking system as a whole. The tests using monthly data for the individual banks indicated the need for further refinement of the model although considering the number of observations and the diversity among banks perhaps the R² was not that bad.. The R² was much improved when monthly data for the banking system was used. This is to be expected as aggregations over banks hides much detail which, thus, does not have to be explained. / Arts, Faculty of / Vancouver School of Economics / Graduate

In the global market in which many countries still struggle with the consequences of the financial crisis of 2008, many companies come to the conclusion that growth can be achieved through international marketing activities. This attitude poses big challenges to organization that want to enter the international arena, involving deciding which markets should be entered, how this should be done, through which marketing program and finally how to organize the marketing. International expansion poses risks as well as opportunities to businesses, and it is crucial for the organization to thoroughly evaluate the market in order to take a decision about the market entry strategy. Based on the case studies of Credit Suisse and UBS entering the Brazilian market, this thesis sought to study how Swiss banks entered the country and with what results. Based on an extensive literature review, the two cases have been presented and it was possible to demonstrate that great cultural difference and tight regulation suggest the entry through a merger or an acquisition.

A variety of both parametric and nonparametric test statistics have been employed in the finance literature for the purpose of conducting hypothesis tests in event studies. This thesis begins by formally deriving the result that these statistics may not follow their conventionally assumed distribution in finite samples and in some cases even asymptotically. Thus, standard event study test statistics can exhibit a statistically significant bias to size in practice, a result which I document extensively. The bias typically arises due to commonly observed stock return traits, including non-normality, which violate basic assumptions underlying the event study test statistics. In this thesis, I develop an unbiased and powerful alternative: conventional test statistics are normalized in a straightforward manner, then their distribution is estimated using the bootstrap. This bootstrap approach allows researchers to conduct powerful and unbiased event study inference. I adopt the approach in an event study which makes use of a unique data set of failed-bank acquirers in the United States. By employing the bootstrap approach, instead of more conventional and potentially misleading event study techniques, I overturn the past finding of significant gains to failed-bank acquirers. This casts doubt on the common belief that the federal deposit insurance agency's failed-bank auction procedures over-subsidize the acquisition of failed banks. / Business, Sauder School of / Graduate

The study examined the effect of financial inclusion technologies on the financial performance of Zimbabwean banks. The study employs ATM, mobile banking (MB), internet banking (IB) and point of sale (POS) transactions on the financial performance of banks as measured by return on assets. The study adopted the explanatory design and the target population of the study consisted of all the 13 commercial banks in Zimbabwe, with the study period being six years, from 2013 to 2018. The panel data was estimated using fixed and random effects. The findings of the research indicated that all the commercial banks in Zimbabwe at the time of doing this study were using POS, ATM, Mobile banking and Internet banking as they adopted digital forms of banking. In terms of financial performance, banks have been able to increase their return on assets between the years 2013 and 2018. In terms of regression analysis, the findings indicate that for every 1% increase in Mobile banking, ATM and Internet banking there will be an accompanying 0.6%, 0.9%, and 0.5% increase in financial performance respectively while for every 1% increase in POS, there will be a 0.7% decrease in financial performance. Therefore, the research recommended banks to go a step ahead in being innovative through designing new products which will only be accessible to clients who access banking through digital banking methods. Also, the research recommends the government of Zimbabwe to put in place sound macro-economic policies for the whole economy to recover so that the commercial banks in Zimbabwe can fully utilize the benefits associated with digital banking.