The effects of sovereign credit rating on the banking sector in South Africa
- Authors: Makhetha-Kosi, Palesa
- Date: 2022-04
- Subjects: Prime rate , South Africa -- Banking institutions , Credit ratings
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57809 , vital:58267
- Description: The study investigated the effect of sovereign credit rating on the banking sector in South Africa. Four different models with different measures of the banking sector were used to investigate this effect. In the first model Tobit model was used to analyse the effect of sovereign credit rating on bank ratings in South Africa. The study found that sovereign credit ratings have a significant positive effect on bank credit ratings. Using GMM with a sample of 11 banks, with bank lending as the measure for the banking sector, the study found that sovereign credit ratings (SCR) have a positive and significant effect on bank lending by commercial banks in South Africa. The study also used net interest margin, a measure for bank profitability as a third proxy for the banking sector and found that sovereign credit ratings have a significant positive effect on bank profitability. Furthermore, the study used bank stability measured by Z-Score to assess the effect of sovereign credit rating on the banking sector in South Africa. Taking a different approach and using ARDL, the study found that SCR has a positive long-run relationship with Z-Score. Based on the findings in all four models, the study concluded that the sovereign credit rating has a positive and significant effect on the banking sector in South Africa. This means that the sovereign credit ratings upgrade will lead to an improvement in the banking sector. A sovereign credit rating downgrade will be detrimental to the banking sector in South Africa. The study has shown that there are interlinkages between the public and the private sector; therefore, government must come up with strategic policies to ensure stability and reduction of government debt. Policymakers of the banking sector should also strengthen policies that will ensure banks remain profitable and stable even during a sovereign crisis. An effective and efficient asset management is important for the survival of South African commercial banks. The study recommends that both the private and public sector should work in cooperation when formulating policies so that the impact of the regulatory measure on commercial banks is taken into consideration. , Thesis (PhD) -- Faculty of Business and Economic science, 2022
- Full Text:
- Date Issued: 2022-04
- Authors: Makhetha-Kosi, Palesa
- Date: 2022-04
- Subjects: Prime rate , South Africa -- Banking institutions , Credit ratings
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/57809 , vital:58267
- Description: The study investigated the effect of sovereign credit rating on the banking sector in South Africa. Four different models with different measures of the banking sector were used to investigate this effect. In the first model Tobit model was used to analyse the effect of sovereign credit rating on bank ratings in South Africa. The study found that sovereign credit ratings have a significant positive effect on bank credit ratings. Using GMM with a sample of 11 banks, with bank lending as the measure for the banking sector, the study found that sovereign credit ratings (SCR) have a positive and significant effect on bank lending by commercial banks in South Africa. The study also used net interest margin, a measure for bank profitability as a third proxy for the banking sector and found that sovereign credit ratings have a significant positive effect on bank profitability. Furthermore, the study used bank stability measured by Z-Score to assess the effect of sovereign credit rating on the banking sector in South Africa. Taking a different approach and using ARDL, the study found that SCR has a positive long-run relationship with Z-Score. Based on the findings in all four models, the study concluded that the sovereign credit rating has a positive and significant effect on the banking sector in South Africa. This means that the sovereign credit ratings upgrade will lead to an improvement in the banking sector. A sovereign credit rating downgrade will be detrimental to the banking sector in South Africa. The study has shown that there are interlinkages between the public and the private sector; therefore, government must come up with strategic policies to ensure stability and reduction of government debt. Policymakers of the banking sector should also strengthen policies that will ensure banks remain profitable and stable even during a sovereign crisis. An effective and efficient asset management is important for the survival of South African commercial banks. The study recommends that both the private and public sector should work in cooperation when formulating policies so that the impact of the regulatory measure on commercial banks is taken into consideration. , Thesis (PhD) -- Faculty of Business and Economic science, 2022
- Full Text:
- Date Issued: 2022-04
Customer’s perception of e-banking services of South African banks: An analysis of selected South African banks in Gauteng
- Authors: Kgosieng, Kamogelo
- Date: 2020
- Subjects: South Africa -- Banking institutions , Electronic funds transfer
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/49862 , vital:41810
- Description: The South African banking industry has changed from the traditional brick and mortar banks to online banking. The primary objective of the study examines the customers’ perception of the banks’ e-banking services. This study focuses on Gauteng banking customers who bank with the top five banks, namely: FNB, Standard Bank, ABSA, Nedbank and Capitec, and the digital banking platforms offered by the respective banks. A conceptual model based on the SERVQUAL model, including demographic factors and independent variables such as convenience, risk management, customer awareness, reliability and information search, was derived to assist in measuring the relationship of these factors with the overall perception of digitisation in banking. The Statistica package was used to analyse the items and obtain the results of the study. The results revealed that significant relationships exist between all the variables and the perception of e-banking services, with convenience showing up as the highest contributor to customers’ perception of e-banking service channels, followed by reliability. The results of the study indicate that banks should place priority on ensuring the convenient use of their e-banking systems as well ensuring that the systems are reliable and deliver what is expected by the customer.
- Full Text:
- Date Issued: 2020
- Authors: Kgosieng, Kamogelo
- Date: 2020
- Subjects: South Africa -- Banking institutions , Electronic funds transfer
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/49862 , vital:41810
- Description: The South African banking industry has changed from the traditional brick and mortar banks to online banking. The primary objective of the study examines the customers’ perception of the banks’ e-banking services. This study focuses on Gauteng banking customers who bank with the top five banks, namely: FNB, Standard Bank, ABSA, Nedbank and Capitec, and the digital banking platforms offered by the respective banks. A conceptual model based on the SERVQUAL model, including demographic factors and independent variables such as convenience, risk management, customer awareness, reliability and information search, was derived to assist in measuring the relationship of these factors with the overall perception of digitisation in banking. The Statistica package was used to analyse the items and obtain the results of the study. The results revealed that significant relationships exist between all the variables and the perception of e-banking services, with convenience showing up as the highest contributor to customers’ perception of e-banking service channels, followed by reliability. The results of the study indicate that banks should place priority on ensuring the convenient use of their e-banking systems as well ensuring that the systems are reliable and deliver what is expected by the customer.
- Full Text:
- Date Issued: 2020
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