3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item The impact of state-owned banks on economic performance of emerging market economies(2018) Kungwane, GasennaA well-functioning financial system facilitates economic growth through exploitation of market opportunities like product innovation, discovery of novel ideas and new resources, technological advancements, innovative and sustainable ways of using existing resources. The financial system is the engine room of financial intermediation between the surplus and the deficit sectors developing a strong financial system and other economic entities has a great potential of driving economic growth of a country. The prior studies that investigated the subject did not consider the potential impact of stateowned banks on the both economy and social developments. Therefore, this paper will contribute by broadening the research to include state-owned banks’ impact on economic and social development with a particular focus on developing and emerging economies. A judgemental sampling technique in selecting 13 countries was followed as a deliberate choice to enable selection of study units based on the qualities possessed by such units. The sample units were identifiable into two categories; state-owned banks and privatelyowned banks in a sample of countries for the period 1961 - 2016. The study utilised two forms of panel data models, the fixed effects model and random effects model. The study found that credit extension by state-owned banks has a positive effect on GDP per capita growth, human development, employment rate and lead to a decrease in the poverty rate. However, it is negatively related to manufacturing as a proportion of GDP.Item Potential downside effects of Basel III : lessons from previous Accords.(2014-09-16) Wood, ChristopherThe Basel III accord is the cornerstone of global financial reform efforts that seek to guard against the types of financial crisis seen in 2007/8. It requires banks to fund more of their activities with better-quality capital and, in so doing, attempts to assure that they are better able to absorb shocks that can lead to crises. However, capital requirements come with a range of costs, which could spark a slowdown in credit or a change in the types of lending banks engage in. This paper conducts a comprehensive literature review of theoretical and empirical studies of the impacts of previous Accords, Basel I and Basel II, and attempts to draw lessons on possible downside effects of the latest iteration of the Basel Accord. It proceeds in three parts. Part 1 explores the history of the Basel Accords, exploring their theoretical basis and the evolution of the regulation into its current form. This section identifies two possible mechanisms by which capital regulation can negatively impact the broader economy: increasing capital costs and increasing risk aversion. Part 2 explores the potential for increased capital cost, while Part 3 examines the possibility of excessive risk aversion. In conclusion, the paper finds that while the potential for downside effects does exist, these are not likely to be significant, and seem particularly unlikely to have a major impact in the South African case.