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Faculty of Management Sciences

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Subject: search.filters.subject.Financial services industry--South Africa

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    An evaluation on the impact of new capital requirements introduced under the Basel III regulations on banks' lending rates and loan growth : a case study of the eThekwini region and surrounding areas
    (2020-05) Moodley, Kresénta; Singh, Suren; Isheloke, Byelongo Elisee
    The aim of this study is to evaluate the impact of new capital requirements introduced under the Basel III regulations on banks’ lending rates and loan growth. It further analyses how the regulation impacts positively and negatively on the banks’ lending rate. The study was conducted to discover how the Basel III framework affects the banking industry’s loan growth in KwaZulu-Natal. The rationale for this study was based on the information that this financial regulation has led to a substantial decrease in the loan growth of the banking sector. Little research, if any, has been done on this particular topic. Therefore, there was a need to conduct research of this magnitude in order to eliminate the issues related to new capital requirements. A qualitative approach was followed as the dissertation that required this method. The theme of this study focused on credit, interest rates and the cost of credit within the banking industry while the actual research was conducted amongst professionals with 15 to 20 years of experience within the banking industry. Interviews were conducted as part of attempts to gather data in studying the phenomenon. The objective of this study is to identify the difficulties faced by the bank in order to assist in granting a client with a credit facility being in line with the Basel III accord requirements. A further objective is to establish how the Basel III accord has affected the loan growth over the past three to five years in the banking industry and to investigate how the increased cost of credit due to the implementation of the Basel III accord affected the banks and its consumers over the past three to five years. Semi-structured interviews with open ended questions were used to gather data. Due to the type of professionals being interviewed namely; credit managers, business credit managers as well as credit analysts, a total of 10 interviews were conducted. The interviews were recorded and transferred verbatim. The study evaluated the impact that the new Basel III regulation requirements have on the loan growth within the financial industry. Major findings of the research were that banks have become stricter with credit lending; the loan growth has decreased over the past five years, after the Basel III Accord. Due to this being a government regulation, banks have now shifted their focus on promoting non-credit products to increase profitability. This research contributes to the body of knowledge in the financial field of study and helps to bridge the gap on the topic. It is hoped that future research on banking scoring models, Basel III and bank employees’ rapport, as well as on interest rates trends examination would be highlighted as recommended in this study.
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    The role of the Business Analyst in influencing the performance project synergies : a case study of Standard Bank South Africa Head Office
    (2018-09) Pillay, Anjela; Mbehle, Thokozani Patmond
    This study explores the role of synergy between Business Analysts and project teams that influence the success of project management as critical exercise for Business Analysis in the project based activities at Standard Bank. The study contemplates to contribute towards a better understanding of the wider effects of Business Analysts on the South African Economy, with regards to the extent to which collaboration approach leads to an improvement of the performance of the bank. The overall objective of this study was to explore the effects of the Business Analyst in influencing the success of a project synergy. The sub-objectives of this study, firstly, to examine the dynamics of business analytical value-creation system towards project management success at Standard Bank Headquarters; secondly, to analyse how the interrelationship between the Business Analysts and the project management teams creates potential project success for delivery of business value; thirdly, to explore challenges on the degree of training and communication networks faced by Business Analysts in enhancing the integrated project performance; and finally, to establish the extent to which the Business Analysts can influence the success of a project. A descriptive research study was used together with a quantitative approach to research analysis. A census was conducted using purposive sampling within the population of the business unit. A list of about 80 names was chosen out of the Personal and Business Banking Information Technology address book to complete the survey questionnaire and 65 of the respondents was achieved. Frequency distribution of data was utilised for analysis purpose. The study discovered that Business Analysts require professional development to reduce impediments and improve project results. Both Business Analysts and Project Managers need to become more involved at the enterprise level because without an enterprise analysis perspective, they lack the connection between what they are doing and why they are doing it. They understand how to increase the company’s potential benefits, understand business needs and ensure that the priorities of the business are focused on value.
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    Strategic levers for merger and acquisitions in the financial services sector
    (2018) Asmal, Ridwaan; Kader, Abdulla
    Mergers and acquisitions (M&A) is a very topical area. Every organisation has its vision to become a reputable company which is achievable through maximising its market share and future growth. The rationale of the study was a review of mergers and acquisitions in the financial services sector in South Africa and the subsequent massive restructuring in terms of strategic importance and strategic levers from a turnaround perspective, hence we then trying to establish whether the mergers and acquisitions within that period has been effective based on brand image, culture (people effectiveness) and return on investment. The literature review documented and evaluated current and past research as well as the theoretical framework on strategic levers for mergers and acquisitions in the financial services sector. The researcher adopted the quantitative method of research by use of a survey questionnaire. The discussion was presented in a narrative format, and tables, graphs and figures emerging from the findings were used as a basis for the discussion, paying particular attention to the fundamental research objectives and questions. Relevant descriptive and inferential statistics were used to analyse the data collected uncovering some key issues through the analysis. An exploratory factor analysis was conducted and further multiple regression was applied to determine whether the independent variables of brand image and culture were significant predictors of the dependent variable, return on investment. The research findings and recommendations uncovered that from a turnaround perspective in mergers and acquisition deals, brand image, and the culture (people effectiveness) should be in sync to generate the desired return on investment. As a result of greater market share and attainment of other synergies, this would allow firms to muscle flex which lays the platform to launch into uncontested markets like Africa.