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

The financial stability of banks is crucial if they are to fulfil their role in facilitating transactions between borrowers and lenders. The purpose of this study was to investigate the effect of credit risk on the South African banking industry following a movement in credit ratings by rating agencies. Data from a sample of 11 banks were collected from 2006 to 2015. Econometric regression analysis was used to analyse the data. The results show that inflation, credit ratings, exchange rate, gross domestic product, unemployment rate, capital adequacy ratio and size of the bank are significant factors that determine "non-performing loans". Therefore, it is imperative that banks continuously monitor these factors and adapt their credit policies on "non-performing loans". This action would prepare banks for any adverse effects and ensure that the banking industry remains a sound and efficient contributor to the growth of the South African economy. / Business Management / M. Com. (Business Management)

by Cheng Chi Kin, Wong Siu Yuen, Michael. / Thesis (M.B.A.)--Chinese University of Hong Kong, 2000. / Includes bibliographical references (leaves 61-63). / ABSTRACT --- p.ii / TABLE OF CONTENTS --- p.iii / LIST OF TABLES --- p.v / ACKNOWLEDGMENT --- p.vi / Chapter / Chapter I. --- INTRODUCTION --- p.1 / Chapter II. --- BASIC PRINCIPLES OF CREDIT RISK MANAGEMENT --- p.5 / Establishing an appropriate Credit Risk Environment --- p.7 / Operating under a Sound Credit Granting Process --- p.9 / "Maintaining an Appropriate Credit Adminstration, Measurement and Monitoring Process " --- p.13 / Ensuring Adequate Controls over Credit Risk --- p.17 / Chapter III. --- CREDIT RISK MANAGEMENT IN CHINA BANKING INDUSTRY --- p.19 / Development of Chinese Banking Industry --- p.19 / Business Lending in China --- p.22 / Special Issues --- p.24 / Chapter IV. --- CREDIT GRANTING IN HONG KONG BANKS --- p.33 / The Lending Process --- p.35 / Internal Rating System --- p.38 / Internal Control --- p.40 / Illustrative Scenarios --- p.41 / Credit Control Principles --- p.43 / Chapter V. --- COMPARISON BETWEEN PRACTICES IN HONG KONG AND CHINESE BANKS --- p.45 / Structures and Responsibility --- p.45 / Internal Rating System --- p.47 / Division of Labour and Performance Appraisal --- p.51 / Monitoring Process --- p.52 / Overdraft --- p.52 / Non-performing Loan --- p.53 / Chapter VI. --- CONCLUSION --- p.54 / APPENDIX --- p.58 / BIBLIOGRAPHY --- p.61

Private sector sugar millers and Ithala Development Finance Corporation (Ithala) implemented a graduated mortgage loan repayment scheme in the 1995/96 sugarcane production-season to try and improve access to farmland by aspirant commercial farmers in KwaZulu-Natal. By March 2001, the scheme had financed 106 "medium scale farmers" (MSFs), 99 of whom were still in the scheme (one loan had been repaid from own funds, and another six from the proceeds of life insurance policies). The first aim of this study was to analyse factors affecting whether or not the MSFs were current or in arrears on loan repayments as at 31 March 2001. A logit model based on full information for 83 MSFs shows that the estimated probability of a MSF being current on loan repayments was higher for clients with higher levels of average annual gross turnover relative to loan size, and for clients with access to substantive off-farm income. This suggests that farm size (proxied by annual farm gross turnover) does matter when policymakers in South Africa consider future similar schemes designed to improve access to commercial farmland by people that previously could not buy farmland. Smaller-sized, creditworthy farms with loan sizes that are relatively low compared to the expected average annual gross income may also be viable. Access to off-farm income could also be considered as a criterion in selecting potential farmers for future similar schemes, as it helps to provide additional liquidity to fund future operations and debt repayments, and can reduce leverage levels. The second aim was to conduct personal interviews with the 99 MSFs between July and September 2001 in order to identify what aspects of the scheme could be improved for new members . Responses from 88 of these MSFs show that 68% of them would opt to first rent land before purchasing, while 78% of them recognize, or have experienced, the cash flow problem associated with land purchase. Most of the MSFs felt that long-term sugarcane supply agreements constrain enterprise diversification, and that the quality of mentorship that they currently received was not satisfactory. Industry players could consider leveraging donor funding for empowerment projects to improve the quality of future mentorship programmes. There is also some scope for Ithala to improve the client-lender relationship by better clarifying the structure of the graduated repayments, sending loan statements on time, and helping clients to interpret loan statements. Growers perceive the need for a coordinator to monitor, and advise on how to improve, their financial performance this could be a new commercial service opportunity. Using an independent valuer to conduct farm valuations may also be necessary to avoid perceptions of bias in the value of farms offered for sale by the millers. A logit model of the MSFs' preferences for first renting land before purchase shows that new growers joining this scheme, or similar schemes for other farm products, with relatively less liquidity and less farming experience should be given the choice to rent land with an option to purchase. The preference for first renting by most of the surveyed MSFs could indicate that many very highly leveraged MSFs still experience cash flow stress despite the interest rate subsidy. A second policy implication, therefore, is that the current subsidy level, which reduces the effective starting interest rate level to about ten per cent relative to a typical five per cent current return on land, could be increased to promote access to farmland markets. Alternatively, loan terms in the next round of the scheme could be changed to require higher proportions of own equity (lower leverage levels), or to permit the deferral of principal payments, or to permit the purchase of smaller farms by creditworthy, part-time farmers. Another strategy to improve liquidity is to advise growers to limit family drawings in the early years after farmland purchase. / Thesis (M.Sc.Agric.)-University of Natal, Pietermaritzburg, 2003.

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)

This master´s thesis is dedicated on the area of company´s liquidity. It focused on the credit management and cash optimalization and the short term investment of the surplus value. It includes the financial plan for the next 4 years.

Abstracts in English, Zulu and Xhosa / The banking sector is an important industry that needs to be safeguarded because its failure is bound to have a negative knock-on effect on the economy at large. The 2007-2009 financial crises were occasioned by banks assuming disproportionate levels of risk resulting in a high incidence of non-performing loans on their books. As such, this study examined the impact of credit risk on the financial performance of 18 South African banks for the period 2008 to 2018. Panel data techniques, namely the pooled ordinary least squares (pooled OLS), fixed effects and random effects estimators were employed to test the relationship between credit risk and financial performance proxied by non-performing loans (NPLs) and by return on assets (ROA) or return on equity (ROE) respectively. The results of the study documented that credit risk is negatively related to financial performance. Thus, the higher the incidence of non-performing loans, the lower the profitability of the bank. Secondly, the study documented that growth has a positive effect on financial performance. This indicates that productivity capacity is ameliorated through bank development. Thirdly, it was found that capital adequacy is positively related to financial performance. While a greater capital adequacy ratio may instil confidence of stakeholders in a bank, making it competitive, a high capital base may be perceived as a lack of initiative and tying up resources which could have yielded better returns in alternative investments. Fourthly, the study did not find any conclusive relationship between size and financial performance. Lastly, the study found that bank leverage and financial performance are negatively related. The implications of the findings are that at a micro level, banks should observe prudent and stringent credit policies in order to limit the incidence of non-performing loans. At a macro level, regulators must enforce supervision in order to ensure that banks manage their credit risk according to the regulations to minimise the risk of bank failure. / Umkhakha wezamabhanga kulibubulo eliqakathekileko eliding ukobana litjhejwe ngombana ukwehluleka kwalo kuqaleka kungaba nomthelela omumbi kezomnotho ngokubanzi bawo. Umraro wezomnotho weminyaka ephakathi kuka -2007-2009 yayikhambisana nesikhathi lapho amabhanga athoma ukuzifaka engozini ekulukazi, kanti lokho kwarholela ebujameni besehlakalo esikhulu seenkolodo ezingenzi inzuzo encwadini zamabhanga. Yeke-ke, leli rhubhululo belihlola umthintela wesikolodo mayelana nobujamo beemali bamabhanga weSewula Afrika ali-18 ukusukela ngomnyaka ka 2008 ukufika ku 2018. Amano wephanele yedatha, wona ngilawa pooled ordinary least squares (pooled OLS), fixed effects kanye namatshwayo ameda alinganisa imithintela kusetjenzisiwe ngehloso yokuhlola itjhebiswano eliphakathi kobungozi besikolodo kanye nobujamo beemali obukhambisana neenkolodo ezingananzuzo (non-performing loans )(NPLs) begodu lokhu kukhambisana nenzuzo elethwa msebenzi wepahla eligugu (return on assets) (ROA) nanyana inzuzo elethwa magugu womnotho anjengemali/matjhezi (return on equity) (ROE) ngaleyo ndlela.. Imiphumela yerhubhululo itlolwe bona ubungozi bokulodisa buhlobene ngendlela embi nobujamo beemali. Yeke-ke, kutjho bona lokha izinga lezehlakalo zeenkolodo ezingangenisi inzuzo naliya phezulu, kutjho bona izinga lokwenza inzuzo ezincani nalo liya phasi emabhangeni. Kwesibili, irhubhululo litlolwe bona ukuhluma komnotho kunomthelela omuhle ebujameni beemali. Lokhu kutjengisa bona amandla wokukhiqiza asekelwa kuthuthukiswa kwamabhanga. Kwesithathu, kuye kwatholakala bona iimali ezaneleko zikhambisana kuhle nobujamo beemali. Kanti godu, isilinganiso esikhulu seemali ezaneleko singaletha ukuzethemba kwabadlalindima ebhangeni, lokhu kwenze ibhanga bona ibe sezingeni lokuphalisana, isisekelo esiphezulu sezeemali singathathwa njengokutlhogeka komzamo wokuhlanganisa imithombo ebeyingaletha iinzuzo ezincono kwamanye amahlelo wokutjalwa kweemali. . Kwesine, irhubhululo akhange lithole nginanyana ngiliphi itjhebiswano phakathi kobukhulu kanye nobujamo beemali. Kokugcina, irhubhululo lithole bonyana ukuqiniswa kwebhanga ngeemali kanye nobujamo beemali kuzizinto ezingahlobani kuhle. Ilwazi elitholiweko lihlathulula bona ezingeni lamabhizinisi amancani, amabhanga kufanele aqale imigomo eqinileko yokukolodisa ukobana akwazi ukwehlisa izehlakalo zeenkolodo ezingangenisi inzuzo. Ezingeni lamabhizinisi amakhulu, iimbethamthetho kufanele ziqinise ilihlo ukobana aqinisekise ukuthi amabhanga alawula ubungozi bokukolodisa ngokwemithetho ukuphungula ubungozi bokwehluleka kwamabhanga. / Icandelo lezeebhanki lushishino olubalulekileyo olufuna ukukhuselwa kuba ukusilela kwalo ngokuqinisekileyo kunganesiphumo esigangqalanga esingasihlanga kuqoqosho ngokubanzi. Ixesha lobunzima kwezemali ngowe-2007-2009 labangelwa ziibhanki ngamazinga omngcipheko angalamananga athe agqibelela kwisehlo esiphezulu seemalimboleko ezingazaliyo kwiincwadi zazo. Kananjalo, olu phononongo luvavanye impembelelo yomngcipheko wonikezomatyala kwizinga lokuphuma nokungena kwemali kwiibhaki zaseMzantsi Afrika ezili-18 kwisithuba sowe-2008 ukuya kowe-2018. Uluhlu lweenkcukachalwazi zobugcisa, olubizwa ngokuba yi-pooled ordinary least squares (i-pooled OLS), iziqikeleli zeziphumo ezizinzileyo kunye nezeziphumo zebhaqo zasetyenziswa ukuvavanya unxulumano phakathi komngcipheko wonikezomatyala kunye nezinga lokuphuma nokungena kwemali okumelwe ngokwelungelo ziimalimboleko ezingazaliyo (ii-NPL) kunye nembuyekezo yeeasethi (i-ROA) okanye imbuyekezo yezabelo (i-ROE) ngokulandelelana. Iziphumo zophononongo zingqine ngamaxwebhu ukuba umngcipheko wonikezomatyala unonxulumano olungaluhlanga nezinga lokuphuma nokungena kwemali. Ngoko ke, okona isehlo seemalimboleko ezingazaliyo siphezulu, kokona inzuzo yebhanki iphantsi. Okwesibini, uphononongo lungqine ngamaxwebhu ukuba uhlumo lunesiphumo esihle kwizinga lokuphuma nokungena kwemali. Oku kudandalazisa ukuba isakhono sokuvelisa senziwa ngcono ngophuhliso lwebhanki. Okwesithathu, kufunyaniswe ukuba isilinganiso senkunzi sinxulumene ngokukuko nezinga lokuphuma nokungena kwemali. Ngelixa umlinganiselo wesilinganiso senkunzi omkhulu unganika ukuthembeka koqoqosho kwabachaphazelekayo kwibhanki leyo, kuyenze ukuba ibe kwizinga lokukhuphisana nezinye, isiseko senkunzi ephezulu singathathwa njengokusilela kokusungula kunye nokudibanisa imithombo engeyivelise iimbuyekezo ezingcono kutyalomali olulolunye. Okwesine, uphononongo alukhange lufumanise naluphi na unxibelelwano olubonakalayo phakathi kobungakanani nezinga lokuphuma nokungena kwemali. Okokugqibela, uphononongo lufumanise ukuba inkxasomali yebhanki kunye nezinga lokuphuma nokungena kwemali zinxulumene ngokungakuhlanga. Okubhekiselele kokufunyanisiweyo kukuba kwicandelo loshishino olunganeno, iibhanki kufuneka ziqwalasele imigaqonkqubo yamatyala enobulumko nengqongqo ngenjongo yokunciphisa isehlo seemalimboleko ezingazaliyo. Kwicandelo loshishino olubanzi, abalawuli kufuneka banyanzele ukubekwa kweliso ukuqinisekisa ukuba iibhanki zilawula umngcipheko wonikezomatyala lwazo ngokwayamene nemigaqo ukunciphisa umngcipheko wokusilela kwebhanki. / Business Management / M. Com. (Business Management)