3. Electronic Theses and Dissertations (ETDs) - All submissions

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    Removing the veil for the shadow banking system in China
    (2016-01-29) Chen, Nuoya;
    The paper aims to analyze the development of the shadow banking system in China and its role in the rapid economic growth in China for the past three decades. The shadow banking system supports small and medium sized firms and agricultural development projects. This has an important impact on poverty reduction in China as farmers largely refer to informal financial channels to get credit support for seeds, chemicals and animals. The shadow banking system offers credit supplies to lenders who cannot easily obtain credit from the official banking system. The credit supplies they offered use different financial instruments, come with higher interest rates, and were often disguised as financial products landing within the regulatory framework of the administration. The commercial banks also used the shadow banking financial instruments to meet capital thresholds from the People’s Bank of China. As a result, the shadow banking products create longer credit chains, distort credit flows in the financial system by diverting investments into short-term, high return, more risky financial markets. The turbulences in the interbank transaction market, the financial derivative market, the stock exchange markets (including the main-board, the “second tier” market for SMEs and the “third tier” market for start-ups), and the real estate market are all heavily involved in transactions conducted by the shadow banking entities. The shadow banking system in China has been expanding at a pace beyond the current regulatory structure. The internet P2P investment platforms, for instance, become popular with investors and raise funds up to RMB 1 billion each platform. There exist over thousands of internet investment portals, the most popular one being “Yu E Bao”, offered by Alibaba.com. The traditional regulatory institutions, however, do not cover shadow banking investment activities made online. Neither are insurance offered to insurance made online; as the new deposit insurance scheme only cover deposits made in the official banking system. With the ambition of boosting the internationalization of the RMB, financial deepening and economic reforms in China, the financial regulators in China face the dilemma resulting from the regulatory arbitrage associated with the expanding shadow bankinBBC system. Individual investors in China purchase the shadow banking investment products and assume their purchases come with implicit government guarantees, such as wealth management products sold by commercial banks for trust companies and local government investment platforms. On the other hand, it is critical for investors to make rational investments; thus, regulators are obliged to remind investors of risks related to the shadow banking products, that the fantasy of governments repaying failing shadow banking investments will be not realized. It is also the responsibility of the regulators to divert funds collected by the shadow banking entities to long-term investments to build up industrial bases. The financial deepening in China required the transformation of the shadow banking entities and financial products offered into ones with adequate capital cushions and sufficient liquidity. The internationalization of the RMB necessates the opening up of the capital, hence financial account in China. However, the 1997 Asian financial crisis, and the hyperinflation resulting from the dollarization in Latin America has led the Chinese regulators to be cautious in conducting currency liberalization and financial reforms. The opening up of the financial account with the liberalization of the exchange rate regime doubles the financial risks, increases the possibility of financial crises, and may result in the stagnation of economic growth. The function of the central bank as the lender of the last resort demands effective and prudential regulations for SIFIs, and also seeks to functioned to boost market confidence. At this critical turning point of the Chinese economy, defining the role of the shadow banking system, bringing them into the regulatory framework, and identifying risks created should be the priority of the financial regulators in China.
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    Is there evidence of disintermediation in the South African banking sector?
    (2014-10-24) Abreu, Michelle Pingo-de
    This paper assesses the level of financial intermediation in the South African financial industry and the reasons for these levels of intermediation. Different banking intermediation measures are considered and mostly reflect disintermediation during the 1993 to 2009 period. Panel regressions are run to assess which economic factors had the biggest impact on intermediation by SA’s four largest banks (Absa Bank, Standard Bank of South Africa, Firstrand Bank and Nedbank). It is found that bank intermediation was impacted by bank size, profitability, as well as the level of competition and client relationships. The level of financial intermediation in SA has been low, negatively impacting on banks intermediation ability, and possibly impeding government and corporate sectors’ investment and economic activity.
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    Excess liquidity in the financial sector of Lesotho : main drivers and policy options
    (2014-07-10) Thamae, Matsabisa
    This study investigates the main drivers of excess liquidity in the financial sector of Lesotho using Vector Auto Regression (VAR) analysis. The study also undertakes a comparative analysis of Lesotho and CMA economies for economic and financial sector characteristics to benchmark and assist policy recommendation. The results of the study suggest that excess liquidity in Lesotho’s financial sector is driven by undeveloped financial sector as reflected by significant private sector credit to GDP ratio in the results, government expenditure and central bank activities in the open market operations, together with past levels of excess liquidity in the model. Compared to CMA, financial intermediary in Lesotho is relatively undeveloped with government dominating economic activity. The banking sector is observed to be non-competitive for deposits as hinted by the wide intermediation margin compared to other CMA countries.
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    Customer Relationship Management (CRM) implementation within the banking and mobile telephony sectors of Nigeria and South Africa
    (2014-02-21) Chinje, Nathalie Beatrice
    In recent years, emerging markets have become the main “engine of global (economic) growth” (Spence, 2011, p. 8) . Whilst the rapid diffusion of its banking and mobile telephony industries has been unprecedented and well documented in the literature (Bankole, Bankole, & Brown, 2011; Bick, Brown, & Abratt, 2004; Brahima, 2012; Kalba, 2008), the dearth of empirically based evidence on CRM implementation in emerging markets in general, and Nigeria and South Africa (SA) in particular, remains undisputed (Kumar, Sunder, & Ramaseshan, 2011; Sheth, 2011). Consequently, the problem this research addresses is the lack of adaptation of CRM strategies to the emerging market context and the lack of understanding of contingency factors that may inhibit or enable the effectiveness of CRM implementation in companies. To provide further insights into this issue, sixty six (66), one-on-one, semi-structured interviews were conducted with CRM strategy developers, implementers and those fulfilling both roles in four companies across the banking and mobile telephony sectors of Nigeria and South Africa. Secondary data were also collected and triangulated with the findings derived from the primary research to enhance the rigour of this research process; and most importantly, to strengthen the reliability and validity of the research findings. The collected data was recorded, transcribed and analysed using a contact summary form and MAXQDA analysis, a qualitative data analysis software package. The research findings illustrate that whilst some of the factors for CRM effectiveness in Nigeria and South Africa may be consistent with those in high income, industrialized markets, the peculiarities of Nigeria and South Africa require that companies adapt their CRM strategies to the local context. The contingency factors that can either impede on or enhance effective CRM implementation in these countries include (a) multichannel integration (particularly informal channel and social media), (b) operating structure, (c) training and staff recruitment v practices, (d) customer data storage and mining capabilities as well as (e) normative motives linked with the socio-cultural context of the country. The similarities and differences between Nigeria and South Africa are also highlighted in this study. The originality of this study lies in it clearly defining the peculiarities of CRM in emerging markets, thereby establishing that these markets are different from high income, industrialized markets. In addition, this study identifies the contingency factors that can enhance or impede on CRM success in these markets and puts forward a set of research propositions as well as a conceptual model for CRM implementation in emerging markets as a contribution to the body of knowledge. This CRM conceptual model can be tested in future research. Building on these findings, the study makes suggestions on how the strategy of CRM can be adapted to the emerging market context. It proposes that companies assess their CRM readiness through the application of a newly developed heat map that takes into consideration the company lifestage and its industry saturation level. This heat map is a useful tool for organisations to ascertain whether or not they are ready to embark upon the CRM programme, to better understand the required efforts needed to deliver on a successful CRM programme as well as the expected timelines for true benefits realisation. Moreover, another contribution of this research is the development of a CRM index, a composite index of 16 indicators that measures CRM success across three dimensions; namely organisational, institutional and customer data. Furthermore, the novelty of this research can also be found in the triangulation of theories such as the contingency, institutional, and Hofstede’s fifth national value dimensions of culture that focuses on a short vs. long-term orientation of cultures and companies, are integrated into a single study. vi This study has theoretical, managerial, conceptual, methodological and societal implications. Future research could include other geographies, industries, a longitudinal study and quantitative studies based on the testing of the proposed CRM conceptual model and index.
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