>Magister Scientiae - MSc / Commercial banks play a dominant role in facilitating the economic growth of a country by acting
as an intermediary between the de cit spending unit (borrowers) and the surplus spending
unit (lenders). In particular, they transform short-term deposits into medium and long-term
loans. Due to their important role in the economy and the nancial system as a whole, commercial
banks are subject to high regulation standards in most countries. According to an
international set of capital standards known as the Basel Accords, banks are required to hold
a minimum level of capital as a bu er to protect their depositors and the nancial market in
an event of severe unexpected losses caused by nancial risk. Moreover, government regulators
aim to maintain public con dence and trust in the banking system through the use of a deposit
insurance scheme (DIS). Deposit insurance (DI) has the e ect of eliminating mass withdrawals
of deposits in an event of a bank failure. However, DI comes at a cost. The insuring agent is
tasked with estimating a fairly priced premium that the bank should be charged for DI.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uwc/oai:etd.uwc.ac.za:11394/7845 |
| Date | January 2020 |
| Creators | Matamba, Itani |
| Contributors | Muller, Grant E. |
| Publisher | University of Western Cape |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Rights | University of Western Cape |
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