The financial crisis that struck financial markets in 2008 was devastating for the global economy. The impact continues to be felt in the market - most recently in sovereign defaults. 1 There are many questions as to the origin of the crisis and how the same events may be prevented in the future. This dissertation explores two financial instruments: securitisation and credit default swaps (CDSs) and attempts to establish the role they played in the financial crisis. To fully understand the events that unfolded before and during the crisis, a sound theoretical understanding of these instruments is required. This understanding is important to discern the future of stable financial markets and to gain insight into some of the potential risks faced by financial markets. The South African perspective regarding securitisation, CDSs and the global financial crisis is an important field of study. The impact of the crisis on South Africa will be explored in this dissertation, as well as, the effect of the crisis on South Africa's securitisation market (which has proved healthy and robust over the first part of the new millennium despite the global slowdown of these instruments) and the CDS market. A key goal of this work is to establish whether or not CDSs have been used in South Africa to hedge the credit risk component of bonds linked to asset–backed securities (ABSs). This will provide an indication of the maturity of the South African credit risk transfer (CRT) market and how South Africa compares to more developed financial markets regarding complexity, regulation, sophistication and market sentiment. Through the exploration and understanding of these concepts, the efficacy of emerging economies to adapt to globalisation, and how welcome financial innovation has proved to be in emerging markets will be addressed. / Thesis (M.Com. (Risk management))--North-West University, Potchefstroom Campus, 2012.

This study follows a three–pronged approach to investigate the effects of the global financial crisis on the South African retail credit market (using Woolworths as subject). These three prongs, or areas, include a literature study, step–by–step credit scoring guide and an application of this guide in an empirical study. To achieve this goal, credit scoring was selected as the quantitative tool to illustrate these effects. Two different periods were chosen to supply a snapshot of the retail credit industry, namely the retail credit situation before and during the global financial crisis. To correctly define and understand the mechanics affecting South Africa's retail credit industry, a literature review was conducted to investigate the global financial crisis, the South African retail credit market and credit scoring itself. The literature investigation explains the global financial crisis and identifies some of the primary drivers behind it. These drivers included the US housing bubble, the introduction of subprime loans and the securitisation of these loans (mortgage backed securities). The study found that these drivers, especially the securitisation of subprime loans, were the vehicle used to enable the crisis to spread globally. The ultimate goal of the study was to provide the individual, and companies, with an understanding of the global financial crisis' effects on the consumer specifically through their credit worthiness and retail credit behaviour. Through the use of credit scoring, the study found that at least one retailer (Woolworths) in the retail industry was affected. Woolworths placed a stronger emphasis on reducing their credit exposure whilst consumers were steadily increasing their facility utilisation. / Thesis (M.Com. (Risk management))--North-West University, Potchefstroom Campus, 2012.

The financial crisis that struck financial markets in 2008 was devastating for the global economy. The impact continues to be felt in the market - most recently in sovereign defaults. 1 There are many questions as to the origin of the crisis and how the same events may be prevented in the future. This dissertation explores two financial instruments: securitisation and credit default swaps (CDSs) and attempts to establish the role they played in the financial crisis. To fully understand the events that unfolded before and during the crisis, a sound theoretical understanding of these instruments is required. This understanding is important to discern the future of stable financial markets and to gain insight into some of the potential risks faced by financial markets. The South African perspective regarding securitisation, CDSs and the global financial crisis is an important field of study. The impact of the crisis on South Africa will be explored in this dissertation, as well as, the effect of the crisis on South Africa's securitisation market (which has proved healthy and robust over the first part of the new millennium despite the global slowdown of these instruments) and the CDS market. A key goal of this work is to establish whether or not CDSs have been used in South Africa to hedge the credit risk component of bonds linked to asset–backed securities (ABSs). This will provide an indication of the maturity of the South African credit risk transfer (CRT) market and how South Africa compares to more developed financial markets regarding complexity, regulation, sophistication and market sentiment. Through the exploration and understanding of these concepts, the efficacy of emerging economies to adapt to globalisation, and how welcome financial innovation has proved to be in emerging markets will be addressed. / Thesis (M.Com. (Risk management))--North-West University, Potchefstroom Campus, 2012.

This study follows a three–pronged approach to investigate the effects of the global financial crisis on the South African retail credit market (using Woolworths as subject). These three prongs, or areas, include a literature study, step–by–step credit scoring guide and an application of this guide in an empirical study. To achieve this goal, credit scoring was selected as the quantitative tool to illustrate these effects. Two different periods were chosen to supply a snapshot of the retail credit industry, namely the retail credit situation before and during the global financial crisis. To correctly define and understand the mechanics affecting South Africa's retail credit industry, a literature review was conducted to investigate the global financial crisis, the South African retail credit market and credit scoring itself. The literature investigation explains the global financial crisis and identifies some of the primary drivers behind it. These drivers included the US housing bubble, the introduction of subprime loans and the securitisation of these loans (mortgage backed securities). The study found that these drivers, especially the securitisation of subprime loans, were the vehicle used to enable the crisis to spread globally. The ultimate goal of the study was to provide the individual, and companies, with an understanding of the global financial crisis' effects on the consumer specifically through their credit worthiness and retail credit behaviour. Through the use of credit scoring, the study found that at least one retailer (Woolworths) in the retail industry was affected. Woolworths placed a stronger emphasis on reducing their credit exposure whilst consumers were steadily increasing their facility utilisation. / Thesis (M.Com. (Risk management))--North-West University, Potchefstroom Campus, 2012.

Solvency II is the new European Union (EU) legislation which will replace the capital adequacy regime for the insurance industry. Considering that the banking sector has experienced a similar change through the different Basel Accords (Basel), there is an opportunity for the insurance industry before The results indicate similar distortions between developing countries while the major driver behind the cost of capital for developing countries is equity market volatility, and not credit risk as might have been expected. Finally, the fourth research problem relates to another objective of financial regulations: to reflect the risks that financial institutions face. The risk sensitivities of economic and regulatory capital for credit risk are investigated empirically using a dynamic optimisation model in one of the first studies of its kind. Results show that economic capital is a superior risk measure to regulatory capital from a systemic- and institution-specific risk perspective. This, along with calls to strengthen Pillar 2 disciplines following the financial crisis, leads to a suggestion that economic capital could be considered as a Pillar 1 capital requirement, replacing the current forms of Pillar 1 regulatory capital. the implementation of Solvency II to learn from the weaknesses and shortcomings in Basel to ensure that the design of Solvency II will, as far as possible, compensate for these. The financial crisis of 2007 to 2010 highlighted certain weaknesses and shortcomings of Basel and there is accordingly an opportunity for the insurance industry to learn from these deficiencies and to strengthen Solvency II to help prevent similar events in the insurance industry. This thesis investigates these weaknesses in Basel in an attempt to determine the extent to which these are inherently included in Solvency II. The first research problem of this thesis examines these weaknesses in Basel and relates them back to Solvency II to determine which, and to what extent, some of them may have been included in Solvency II. The second research problem leads from the first and critically explores an objective of financial regulations, namely to provide financial institutions with equal competitive conditions (the so-called ‘level playing field’) from a regulatory perspective. To achieve this objective, there is an implicit assumption that the cost of capital between countries is equal. Investigation into the cost of capital between both developed and developing countries using a modified weighted average cost of capital model indicates that the cost of capital between developed and developing countries differs and that regulations based on capital requirements tend to favour developed countries. This means that current financial regulations cannot achieve this objective as intended. The third research problem investigates the cost of capital between various developing countries to determine firstly whether similar competitive distortions exist among such countries, while secondly exploring the drivers behind the cost of capital in such countries through linear regression analyses. / PhD (Risk Management), North-West University, Potchefstroom Campus, 2013

Solvency II is the new European Union (EU) legislation which will replace the capital adequacy regime for the insurance industry. Considering that the banking sector has experienced a similar change through the different Basel Accords (Basel), there is an opportunity for the insurance industry before The results indicate similar distortions between developing countries while the major driver behind the cost of capital for developing countries is equity market volatility, and not credit risk as might have been expected. Finally, the fourth research problem relates to another objective of financial regulations: to reflect the risks that financial institutions face. The risk sensitivities of economic and regulatory capital for credit risk are investigated empirically using a dynamic optimisation model in one of the first studies of its kind. Results show that economic capital is a superior risk measure to regulatory capital from a systemic- and institution-specific risk perspective. This, along with calls to strengthen Pillar 2 disciplines following the financial crisis, leads to a suggestion that economic capital could be considered as a Pillar 1 capital requirement, replacing the current forms of Pillar 1 regulatory capital. the implementation of Solvency II to learn from the weaknesses and shortcomings in Basel to ensure that the design of Solvency II will, as far as possible, compensate for these. The financial crisis of 2007 to 2010 highlighted certain weaknesses and shortcomings of Basel and there is accordingly an opportunity for the insurance industry to learn from these deficiencies and to strengthen Solvency II to help prevent similar events in the insurance industry. This thesis investigates these weaknesses in Basel in an attempt to determine the extent to which these are inherently included in Solvency II. The first research problem of this thesis examines these weaknesses in Basel and relates them back to Solvency II to determine which, and to what extent, some of them may have been included in Solvency II. The second research problem leads from the first and critically explores an objective of financial regulations, namely to provide financial institutions with equal competitive conditions (the so-called ‘level playing field’) from a regulatory perspective. To achieve this objective, there is an implicit assumption that the cost of capital between countries is equal. Investigation into the cost of capital between both developed and developing countries using a modified weighted average cost of capital model indicates that the cost of capital between developed and developing countries differs and that regulations based on capital requirements tend to favour developed countries. This means that current financial regulations cannot achieve this objective as intended. The third research problem investigates the cost of capital between various developing countries to determine firstly whether similar competitive distortions exist among such countries, while secondly exploring the drivers behind the cost of capital in such countries through linear regression analyses. / PhD (Risk Management), North-West University, Potchefstroom Campus, 2013

AFRIKAANS: Voor 1994 was die skoolhoof aanspreeklik vir die beheer van die finansies van die skool. Met die instelling van die Suid-Afrikaanse Skolewet no. 84 van 1996 het die aanspreeklikheid vir skoolfinansies drasties verander deur die instelling van selfbestuur by skole. Daar bestaan tans groot onduidelikhede by departementele amptenare sowel as by skoolhoofde en skoolbeheerliggaamlede oor wie aanspreeklik vir die finansies van die skool is. Sommige skole se begrotings het sedert 1994 van `n paar honderd duisend rand tot `n paar miljoen rand toegeneem; meer personeel word aangestel wat deur die skoolbeheerliggaam vergoed word en dit alles plaas bykomende bestuurverantwoordelikhede op die skoolhoof. Dikwels is die skoolhoofde en skoolbeheerliggaamlede nie opgelei om hierdie bykomende finansiële lading te hanteer nie. Daar word van die skoolbestuurspan verwag om kennis van finansiële bestuur te hê om hulle taak effektief uit te voer, nie alleenlik vir hulle eie oorlewing nie maar ook tot die voordeel van die skool en die gemeenskap. Die doel van hierdie studie is om die vertrekpunte waarbinne skoolfinansies bestuur en beheer word, te bepaal, asook om aan die hand van kontrole- en beheermaatreëls te bepaal of begrotings aangewend word om onderrig en leer in openbare skole te bevorder. ENGLISH: Before 1994 the principal of a school was accountable for the control of the school`s finances. Since the introduction of the South African Schools Act no. 84 of 1996 and the implementation of self-management of schools, accountability for schoolfinances has changed dramatically. Some schools’ budgets have increased from a few hundred thousands of rand to millions of rand since 1994; more teachers are being appointed and paid by the school governing body; these developments increase the principal’s managerial responsibilities. Principals and school governing body members are often not qualified to shoulder this extra financial burden. It is expected of school managers to have knowledge of financial management to enable them to execute tasks effectively, not only for their own survival but also in the best interest of the school and the community. The purpose of this study is to identify the principles for the control and management of schools’ finances and also to establish whether budgets are managed in such a way that instruction and learning in public schools are propagated. / Thesis (PhD)--University of Pretoria, 2011. / Education Management and Policy Studies / unrestricted

Personal financial management is an integrated part of modern man's everyday life. It does not only involve spending his monthly income. It comprises his outlook on life, the way he handles all his financial affairs as well as the way he goes about minimizing his financial risks. The financial plan that the individual has to provide for his retirement, to take care of his dependants as well as the way that the assets he acquired during this lifetime, must be distributed after his death, also forms part of this personal financial management. The main purpose of the study is to determine the levels of personal financial management practiced by employees of NWK Limited, as well as to determine the need for guidance in this regard. The following aspects of personal financial management are researched in chapter 2. These aspects were used to determine to what extent personal financial management was performed by having the study population anonymously complete a customized questionnaire. The following aspects were applied: * Attitude towards money. * Management style with regards to money. * Time value of money. * The financial plan. * Investments. The results of the study confirmed that there is a definite need for guidance with regard to personal financial management, especially under the younger employees as well as the personnel in the lower job levels of the company. Through the rendering of a tailored guidance programme, productivity as well as the quality of life, especially after retirement, could be improved significantly. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2011.

Personal financial management is an integrated part of modern man's everyday life. It does not only involve spending his monthly income. It comprises his outlook on life, the way he handles all his financial affairs as well as the way he goes about minimizing his financial risks. The financial plan that the individual has to provide for his retirement, to take care of his dependants as well as the way that the assets he acquired during this lifetime, must be distributed after his death, also forms part of this personal financial management. The main purpose of the study is to determine the levels of personal financial management practiced by employees of NWK Limited, as well as to determine the need for guidance in this regard. The following aspects of personal financial management are researched in chapter 2. These aspects were used to determine to what extent personal financial management was performed by having the study population anonymously complete a customized questionnaire. The following aspects were applied: * Attitude towards money. * Management style with regards to money. * Time value of money. * The financial plan. * Investments. The results of the study confirmed that there is a definite need for guidance with regard to personal financial management, especially under the younger employees as well as the personnel in the lower job levels of the company. Through the rendering of a tailored guidance programme, productivity as well as the quality of life, especially after retirement, could be improved significantly. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2011.

The South African Postbank Limited has been tasked by Government with a social mandate to provide basic financial services to people receiving low income and people living in rural areas. Personal financial literacy is an essential element which affects financial inclusion in the target market of a state–owned bank. To achieve the bank?s social mandate and its objective, it would be vital to determine whether people in low income and rural demographics are financially literate. Financial literacy is defined as the ability to manage your money on a day–to–day basis, do future financial planning, choose sound financial products and have appropriate financial knowledge and understanding. Various factors influence the level of financial literacy of a person and in order to improve the financial literacy of a person, cognisance should be taken of that person?s age, gender, living conditions, income–level and socio–economic elements. It will be beneficial for a state–owned bank, in order to reach its social mandate, to implement financial educational programmes to increase financial literacy. The latter will increase the amount of potential customers and thus promote financial inclusion in the long run. The sample in low income and rural areas has been found to be the most wanting in financial literacy and therefore it is crucial to address this shortcoming in the target market of the state–owned bank in order to reach the social mandate of financial inclusion. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2012.