3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item The twin peaks model: a critical analysis of its effectiveness in South Africa(2018) Moodley, AstonThe Global Financial Crises of 2008, revealed many gaps in the regulatory structures of some of the leading countries in the world. This study is designed to assess the effectiveness of the Twin Peaks Regulatory model, in order to address South Africa’s need for regulatory reform. Research papers, journal articles, reports, conference documents, policy documents and other secondary data resources were reviewed, analysed and critiqued to gain an understanding of the model and how it is likely to suit South Africa, as a developing country. The Twin Peaks Model has been adopted and effectively implemented by international counterparts over the past 20 years. Australia was the first to implement it successfully, followed by the Netherlands, New Zealand, Belgium and The United Kingdom. These countries adopted and adapted the Twin Peaks Model to fit their financial regulatory reform needs. Focussing on these countries, it is shown that the Twin Peaks Model was variously adjusted by each country to suit their specific regulatory requirements. South Africa will therefore also have to adapt the model to their identified needs. Based on the above findings, this research recommends that South Africa reforms their current financial regulatory model and adapt it to incorporate the Twin Peaks Model. This can be done by incorporating the National Credit Regulator along with the Prudential Authority and Financial Sector Conduct Authority. Furthermore, comparatively this study shows that there are many adaptations to the Twin Peaks Model’s architectural structure and there is no one fixed conventional model. This reality allows for flexibility around the structural design, operational independence and regulatory coordination. Key Words: Central Bank, Global Financial Crises, Market Conduct Regulator, Prudential Authority, The Twin Peaks ModelItem Financing of infrastructure maintenance in South Africa(2017) Ntjatsane, Matsiu ClementinahInfrastructure quality is as important as its quantity, although evidence point to lost growth opportunities due to insufficient investment in maintenance of new and existing infrastructure. Notably, bulk of infrastructure in South Africa is old and collapsing faster than planned and is presently failing to meet increased demand for services. The apartheid government invested heavily in infrastructure development that served only minority of the white population and ignored scarcity of resources that led to high poverty rates in the country. While on the verge of reversing inheritances of the apartheid government, the 1994 democratic government reached out to millions of previously disadvantaged majority population with infrastructure that further improved quality of their lives. However, there was no long-term planning for maintenance; old and new infrastructure received inadequate maintenance and much of it is in a state of disrepair. This research paper aims to explore the condition of the nation’s major economic infrastructure with the intention of discovering the infrastructure gap prevalent to South Africa. It also explores effective financing strategies through which adequate levels of maintenance can be achieved to significantly minimise or close the infrastructure gap. And most importantly discovering capacity constraints for financing infrastructure maintenance and identifying additional sources for securing maintenance funding. Findings of this research indicated that the large infrastructure gap has been a result of maintenance neglect in many areas and inadequacy of maintenance budgets except for infrastructure operated and owned by state owned entities. This study also revealed that South Africa is incapacitated in many aspects which include skills shortage, limited access to financial markets and restrictive regulations governing private sector participation.Item Assessment of business risk economic capital for South Africa banks : a response to Pillar 2 of Basel II(2016) Alie, Kaylene JeanThe study is an assessment of the current treatment of business risk, as a significant risk type for financial institutions. It includes an industry analysis of the five major banks in South Africa, as well as international banks, and how these banks currently manage business risk in the Pillar 2 supervisory process. It assesses economic capital frameworks and the importance of business risk in the risk assessment and measurement process in the global and local industry. Various methodologies have been researched to assess which statistical methods are best suited in the measurement of this risk type as well as the quantification of the capital levels required. This study has compared the available statistical methodologies currently used in the industry and concludes which is best given the issues pertaining to the modelling of business risk quantification. A statistical model has been developed to quantify business risk for a specific bank using bank specific data, using a methodology which is relatively generic and could be applied widely across all financial institutions. The model serves to illustrate the principles surrounding the quantification of business risk economic capital.Item The Role of South African financial Institutions (public and private) in the development of SME’s and entry level black entrepreneurs in South Africa: comparative analysis with respect to India and Brazil(2017) Zama, WandaThis study investigated whether the financial sector (private and public) is accessible to the SME’s and entry level entrepreneurs dominated by Black and poor people. The study employed a comparative analysis method; it compared the structure of the South African financial sector to those of India and Brazil, as newly industrialised countries. The finding indicates that the South African financial sector lacked the presence of state-owned financial institutions as in the comparable NCI countries to support SMEs and entry level Black entrepreneurs. The study then recommended the creation of state-owned microfinance institutions, whose performance will determine the need of state-owned banksItem The impact of development finance institutions on socio-economic transformation : the case of South Africa(2016) Barnard, Anthony MarkDFIs play a very important role in economic development of most countries. In South Africa (SA), they have an additional role of addressing socio-economic development and transformation problems that were created by the previous Apartheid system. In particular, DFIs in SA address unemployment, redistribution of income, private sector development and manufacturing sector growth. However, it is not clear whether these DFI’s are having a positive impact on the socio-economic transformation as they are expected to, given the amount of money that the government budget for them each year. The aim of this research is to investigate whether SA DFI’s have significant impact on the country’s socio-economic development and transformation. DFI credit extension is found to have positive and significant impact on economic growth in in both South African and in emerging markets. Also, in both South Africa and in emerging markets, government consumption has negative impact on economic growth. An additional analysis further shows that DFI credit extension promotes increase in manufacturing-toGDP in SA and in other emerging markets. DFI has significantly positive impact on HDI in South Africa but not in emerging markets. There is a positive (albeit not significant) impact of DFI credit extension on poverty in South Africa, worse still, the relationship is significantly negative in other emerging countries. The results show that the government should bolster the DFI funding as these DFIs play a significant role in the economic development of the country.Item Micro-finance institutions (MFIs) and poverty reduction in South Africa: a case study of Ethekwini metropolitan municipality(2017) Mkhize, Zonke Queeneth PearlMicrofinance Institutions (MFIs) are proving to be a pivotal asset in providing essential access to financial services to the urban and rural poor who are traditionally shunned by the mainstream blue-chip financial service providers in developing countries. However, in the literature, MFIs providing entrepreneurial assistance have been lumped together with MFIs providing a more exploitative and consumption loan offering. This then masks the value or the poverty reducing effect of MFIs that have financial products geared to assist the creation of small businesses for the poor. The aim of this study is to examine South Africa’s microfinance institutions and their impact on poverty reduction in urban and rural areas. To this end the research question is as follows: what is the impact of the MFI on poverty reduction around eThekwini region? This study was conducted among microfinance institutions and the beneficiaries of MFIs in eThekwini region. In order to gain better insights and in order to better understand the real depth and knowledge of this topic, the researcher needed a view of both the service provider and their customers. A structured close ended survey questionnaire was designed for MFI managers and borrowers. The responses received show that Microfinance institutions are a useful means to reduce poverty among the poor. On this basis, it is recommended that the government must play an active role to regulate MFIs but more importantly to find innovate ways to help fund or subsidize their activities among the poor.