The purpose of this study is to explore the current status in relation to the concept of curatorship as
a measure to rescue failing banks. The world as we came to know it has changed the way banking is
done. This dissertation therefore investigates the concept of curatorship of banks in South Africa in
terms of the Banks Act and to determine what influences, if any, does the proposed Twin Peaks
model of Regulation will have on it.
A closer examination of section 69 and 69A of the South African Banks Act is conducted in order to
understand the impact of bank curatorship within the South African context. Not only is an
examination conducted on the Banks Act, but also on the proposed Financial Sector Regulation Bill.
Comparatively this dissertation explores and examines curatorship under Botswana banking law, this
is done on the premise that Botswana like any other global financial players has it fair share of
financial markets challenges. It examines the measures that Botswana may have put in place in order
to assist failing banks through the instrumentality of curatorship, or temporary management as it is
known in Botswana.
There are several pertinent features that are identified to be contributing factors for banks to be
placed under curatorship. These factors include amongst others lack of robust supervision by
regulators, lack of risk and management disclosure by banks, poor management of banks, excessive
lending and failure of a bank s management to conduct the business of banks in a prudent, safe and
sustainable manner.
Internationally this dissertation explores international best practices and measures that are in place
to deal with the concept of curatorship as a measure of rescuing failing banks. This is done on the
understanding that international financial sector is globally integrated but regulated nationally. It is
this concept of interconnectedness of banks that perhaps gave birth to the Basel Core Principles on
responsible banking and its dedicated Basel Committee of Banking Supervisors to ensure the
prudential and liquidity compliance of banks globally. This dissertation explores and examines some
of the elements that are likely to lead to banks being placed under curatorship and identify them as
lack of global regulation and cooperation amongst others. This lack of global regulation and
cooperation are also seen as drivers that poses a risk to global financial markets.
Finally this study acknowledged that bank curatorship does not necessarily translate to prevention of
banks failures but rather as a tool used to ensure that when failure occurs, it is addressed in an
orderly manner so as to cause the least risk to the financial system. This dissertation concludes by
making recommendations which incorporates measures that may be put in place for management
and effective supervision of banks. / Mini Dissertation (LLM)--University of Pretoria, 2015. / Mercantile Law / LLM / Unrestricted
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:up/oai:repository.up.ac.za:2263/53196 |
| Date | January 2015 |
| Creators | Tjiane, Nelson Khomotso |
| Contributors | Van Heerden, C.M. (Corlia), KNTJIANE@GMAIL.COM |
| Publisher | University of Pretoria |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Mini Dissertation |
| Rights | © 2016 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
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