Protecting depositors and promoting financial stability in South Africa : is there a case for the introduction of deposit insurance?
- Authors: Ngaujake, Uahatjiri
- Date: 2004
- Subjects: Banks and banking -- South Africa , Bank deposits -- South Africa , Bank failures , Banks and banking -- State supervision , Deposit insurance , Consumer protection -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1025 , http://hdl.handle.net/10962/d1002760 , Banks and banking -- South Africa , Bank deposits -- South Africa , Bank failures , Banks and banking -- State supervision , Deposit insurance , Consumer protection -- South Africa
- Description: Banks play a pivotal role in economic growth and development of all countries and therefore the stability of the banking system is a vital goal of bank supervisors. Banks act as delegated monitors of depositors’ funds and this relationship, like all principal-agent relationships, presents agency problems. In the case of banks agency problems arise because depositors cannot accurately assess the financial health of banks due to the asymmetry of information existing between banks and depositors. Because banks possess private information on their borrowers, which depositors cannot access, it exposes depositors to risk of loss of deposits in cases of bank failures originating from nonrepayment of such loans. This asymmetry of information also exposes banks to runs by depositors and these runs can lead to bank failures with devastating effects for the financial system and the economy at large. It is for this reason that banks are regulated and supervised more than other institutions. Bank failures are a worldwide phenomenon and South Africa is no exception as evidenced by historical and recent bank failures in South Africa. This thesis investigates the desirability of introducing an explicit deposit insurance scheme in South Africa as a means of protecting small, unsophisticated depositors who are almost always the losers when banks fail, and promoting financial stability. The study finds that bank failures in South Africa are mainly attributable to mismanagement of banks, liquidity problems and fraud. Bank failures as a result of the aforementioned reasons have led to depositors losing their deposits in South Africa. The absence of a clearly defined depositor protection scheme in South Africa, the inadequacy of the hitherto implicit guarantee system to protect depositors, and the poor record of the South African Reserve Bank in bank failure resolution, form the basis of the conclusion of the study, i.e., there is a case for the introduction of deposit insurance in South Africa. In order to assist South African policymakers in designing an effective deposit insurance scheme for the country, the thesis further provides a guide on how the most important design features of deposit insurance should be handled. This is in an attempt to ensure that the moral hazard problem inherent in deposit insurance is overcome.
- Full Text:
- Date Issued: 2004
- Authors: Ngaujake, Uahatjiri
- Date: 2004
- Subjects: Banks and banking -- South Africa , Bank deposits -- South Africa , Bank failures , Banks and banking -- State supervision , Deposit insurance , Consumer protection -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1025 , http://hdl.handle.net/10962/d1002760 , Banks and banking -- South Africa , Bank deposits -- South Africa , Bank failures , Banks and banking -- State supervision , Deposit insurance , Consumer protection -- South Africa
- Description: Banks play a pivotal role in economic growth and development of all countries and therefore the stability of the banking system is a vital goal of bank supervisors. Banks act as delegated monitors of depositors’ funds and this relationship, like all principal-agent relationships, presents agency problems. In the case of banks agency problems arise because depositors cannot accurately assess the financial health of banks due to the asymmetry of information existing between banks and depositors. Because banks possess private information on their borrowers, which depositors cannot access, it exposes depositors to risk of loss of deposits in cases of bank failures originating from nonrepayment of such loans. This asymmetry of information also exposes banks to runs by depositors and these runs can lead to bank failures with devastating effects for the financial system and the economy at large. It is for this reason that banks are regulated and supervised more than other institutions. Bank failures are a worldwide phenomenon and South Africa is no exception as evidenced by historical and recent bank failures in South Africa. This thesis investigates the desirability of introducing an explicit deposit insurance scheme in South Africa as a means of protecting small, unsophisticated depositors who are almost always the losers when banks fail, and promoting financial stability. The study finds that bank failures in South Africa are mainly attributable to mismanagement of banks, liquidity problems and fraud. Bank failures as a result of the aforementioned reasons have led to depositors losing their deposits in South Africa. The absence of a clearly defined depositor protection scheme in South Africa, the inadequacy of the hitherto implicit guarantee system to protect depositors, and the poor record of the South African Reserve Bank in bank failure resolution, form the basis of the conclusion of the study, i.e., there is a case for the introduction of deposit insurance in South Africa. In order to assist South African policymakers in designing an effective deposit insurance scheme for the country, the thesis further provides a guide on how the most important design features of deposit insurance should be handled. This is in an attempt to ensure that the moral hazard problem inherent in deposit insurance is overcome.
- Full Text:
- Date Issued: 2004
Screening of the white margined sole, Synaptura marginata (Soleidae), as a candidate for aquaculture in South Africa
- Authors: Thompson, Ernst Frederick
- Date: 2004
- Subjects: Flatfishes -- South Africa , Aquaculture -- South Africa , Soleidae -- South Africa , Soleidae
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:5207 , http://hdl.handle.net/10962/d1004523 , Flatfishes -- South Africa , Aquaculture -- South Africa , Soleidae -- South Africa , Soleidae
- Description: The white margined sole Synaptura marginata (Soleidae) was isolated as the most likely candidate for flatfish aquaculture in South Africa. The aim of the study was to screen the sole as a candidate aquaculture species by way of a comprehensive study of its biology and life history strategy and to identify possible "bottlenecks". The study was undertaken on the assumption that the biological data would provide valuable information for developing specific technologies that might be required for the farming of this species. Specimens were collected monthly by spearing along the Eastern Cape coast of South Africa between December 2000 and March 2002. Length-at-age data required for modeling the growth of S. marginata was obtained from sectioned otoliths. A Von Bertalanffy growth model with an absolute error structure best describes the growth for this species. The model parameters were: L∞ = 429.5 mm TL, K = 0.24 and t₀ = -1 .79 years. Analysis of gut contents showed that S. marginata feed exclusively on polychaete worms, mainly of the genus Morphysa. S. marginata shows a protracted summer spawning season of six months, from October to April. This was determined by the calculation of a monthly gonadosomatic index and a macroscopic maturity scale. Histological examination of the ovaries revealed five ovarian developmental stages. Size at 50% and 100% sexual maturity for females was calculated to be 235 mm TL and 300 mm TL (ca. 1.5 - 2.5 years of age) and all males> 154 mm TL were mature. S. marginata is a batch spawner, releasing a minimum of 3 batches of eggs per year. Relative fecundity is high (34000 eggs per year I kg) and this coupled with the protracted spawning season would make it possible to obtain adequate numbers of juveniles (for farming) for approximately five to six months of the year. Comparative analysis of the biological characteristics in relation to other soles farmed elsewhere in the world suggests that S. marginata is a suitable candidate for marine fish culture in South Africa.
- Full Text:
- Date Issued: 2004
- Authors: Thompson, Ernst Frederick
- Date: 2004
- Subjects: Flatfishes -- South Africa , Aquaculture -- South Africa , Soleidae -- South Africa , Soleidae
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:5207 , http://hdl.handle.net/10962/d1004523 , Flatfishes -- South Africa , Aquaculture -- South Africa , Soleidae -- South Africa , Soleidae
- Description: The white margined sole Synaptura marginata (Soleidae) was isolated as the most likely candidate for flatfish aquaculture in South Africa. The aim of the study was to screen the sole as a candidate aquaculture species by way of a comprehensive study of its biology and life history strategy and to identify possible "bottlenecks". The study was undertaken on the assumption that the biological data would provide valuable information for developing specific technologies that might be required for the farming of this species. Specimens were collected monthly by spearing along the Eastern Cape coast of South Africa between December 2000 and March 2002. Length-at-age data required for modeling the growth of S. marginata was obtained from sectioned otoliths. A Von Bertalanffy growth model with an absolute error structure best describes the growth for this species. The model parameters were: L∞ = 429.5 mm TL, K = 0.24 and t₀ = -1 .79 years. Analysis of gut contents showed that S. marginata feed exclusively on polychaete worms, mainly of the genus Morphysa. S. marginata shows a protracted summer spawning season of six months, from October to April. This was determined by the calculation of a monthly gonadosomatic index and a macroscopic maturity scale. Histological examination of the ovaries revealed five ovarian developmental stages. Size at 50% and 100% sexual maturity for females was calculated to be 235 mm TL and 300 mm TL (ca. 1.5 - 2.5 years of age) and all males> 154 mm TL were mature. S. marginata is a batch spawner, releasing a minimum of 3 batches of eggs per year. Relative fecundity is high (34000 eggs per year I kg) and this coupled with the protracted spawning season would make it possible to obtain adequate numbers of juveniles (for farming) for approximately five to six months of the year. Comparative analysis of the biological characteristics in relation to other soles farmed elsewhere in the world suggests that S. marginata is a suitable candidate for marine fish culture in South Africa.
- Full Text:
- Date Issued: 2004
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