Analysis of corporate failures: a case study of two South African banks
- Mqomboti, Xitshembiso Pronacia
- Authors: Mqomboti, Xitshembiso Pronacia
- Date: 2023-02
- Subjects: Business failures South Africa , Corporate governance South Africa , Risk management , Operational risk , Business ethics , Bank management South Africa , Banks and banking South Africa
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419151 , vital:71620
- Description: This study analysed the factors that contributed to the failure of Venda Building Society Mutual Bank (VBS) and African Bank Limited and the impact it had on their key stakeholders. The specific objectives of this study were to evaluate African Bank and VBS bank's operational risk management processes and controls, the role of ethical failures at VBS bank and African Bank; and assess how the failures affected their stakeholders. The population sample of the study included African Bank and VBS. The study adopted a qualitative research method. Existing reports from both African Bank and VBS were used to collect data. The study adopted a thematic data analysis method, which includes data coding and the development of themes. The data analysis framework was derived from a defined set of research propositions and seven (7) themes were derived from this analysis method. The failure in operational controls of both banks and ineffective risk management structures including unethical conduct by the executive management and board of VBS bank, irregular financial transactions and weakened external auditing function resulted in an unaccountable executive relationship and reckless lending decision-making. This research study will expand on the existing body of knowledge on the failures and near-failures of banks in the South African banking sector. The South African banking industry and its regulatory bodies will be better equipped to strengthen their corporate governance in risk controls to mitigate future collapses and near collapses of banks. , Thesis (MBA) -- Faculty of Commerce, Rhodes Business School, 2023
- Full Text:
- Authors: Mqomboti, Xitshembiso Pronacia
- Date: 2023-02
- Subjects: Business failures South Africa , Corporate governance South Africa , Risk management , Operational risk , Business ethics , Bank management South Africa , Banks and banking South Africa
- Language: English
- Type: Academic theses , Master's theses , text
- Identifier: http://hdl.handle.net/10962/419151 , vital:71620
- Description: This study analysed the factors that contributed to the failure of Venda Building Society Mutual Bank (VBS) and African Bank Limited and the impact it had on their key stakeholders. The specific objectives of this study were to evaluate African Bank and VBS bank's operational risk management processes and controls, the role of ethical failures at VBS bank and African Bank; and assess how the failures affected their stakeholders. The population sample of the study included African Bank and VBS. The study adopted a qualitative research method. Existing reports from both African Bank and VBS were used to collect data. The study adopted a thematic data analysis method, which includes data coding and the development of themes. The data analysis framework was derived from a defined set of research propositions and seven (7) themes were derived from this analysis method. The failure in operational controls of both banks and ineffective risk management structures including unethical conduct by the executive management and board of VBS bank, irregular financial transactions and weakened external auditing function resulted in an unaccountable executive relationship and reckless lending decision-making. This research study will expand on the existing body of knowledge on the failures and near-failures of banks in the South African banking sector. The South African banking industry and its regulatory bodies will be better equipped to strengthen their corporate governance in risk controls to mitigate future collapses and near collapses of banks. , Thesis (MBA) -- Faculty of Commerce, Rhodes Business School, 2023
- Full Text:
An analysis of bank risk management and its relevance for the non-bank corporate sector
- Authors: Dietrich, David Roland
- Date: 2007
- Subjects: Bank management , Risk management , Corporations -- Finance , Financial institutions , Banks and banking
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:949 , http://hdl.handle.net/10962/d1002683 , Bank management , Risk management , Corporations -- Finance , Financial institutions , Banks and banking
- Description: This thesis, entitled “An analysis of bank risk management and its relevance for the non-bank corporate sector”, investigates the extent to which financial risk management by the banking sector can be applied to the non-bank corporate sector. As banks’ risk management techniques are more sophisticated than those of the non-bank corporate sector we have endeavoured to ascertain the applicability of these established risk management methods to the non-bank corporate sector. The main objectives of this study were to analyse the banking sectors’ risks and management thereof, and compare them to the risks faced by the nonbank corporate sector. This analysis was then used to present a theoretical financial risk management model for the corporate sector. This analysis was conducted using qualitative research. The thesis engaged in an in-depth investigation of financial risk management through a documentary, literature and media analysis. It was elucidated that not all companies face the same financial risks and therefore each company requires its own unique financial risk management model. Furthermore, it was established that there are several risks that both banks and non-bank corporates are subjected to. However, the management of these risks is not necessarily the same for these two types of institutes. This thesis concludes by putting forward a financial risk management model which presents all the possible financial risks that non-bank corporates may face.
- Full Text:
- Authors: Dietrich, David Roland
- Date: 2007
- Subjects: Bank management , Risk management , Corporations -- Finance , Financial institutions , Banks and banking
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:949 , http://hdl.handle.net/10962/d1002683 , Bank management , Risk management , Corporations -- Finance , Financial institutions , Banks and banking
- Description: This thesis, entitled “An analysis of bank risk management and its relevance for the non-bank corporate sector”, investigates the extent to which financial risk management by the banking sector can be applied to the non-bank corporate sector. As banks’ risk management techniques are more sophisticated than those of the non-bank corporate sector we have endeavoured to ascertain the applicability of these established risk management methods to the non-bank corporate sector. The main objectives of this study were to analyse the banking sectors’ risks and management thereof, and compare them to the risks faced by the nonbank corporate sector. This analysis was then used to present a theoretical financial risk management model for the corporate sector. This analysis was conducted using qualitative research. The thesis engaged in an in-depth investigation of financial risk management through a documentary, literature and media analysis. It was elucidated that not all companies face the same financial risks and therefore each company requires its own unique financial risk management model. Furthermore, it was established that there are several risks that both banks and non-bank corporates are subjected to. However, the management of these risks is not necessarily the same for these two types of institutes. This thesis concludes by putting forward a financial risk management model which presents all the possible financial risks that non-bank corporates may face.
- Full Text:
The Grameen Bank model of microcredit and its relevance for South Africa
- Authors: Akpan, Iniobong Wilson
- Date: 2005
- Subjects: Grameen Bank , Microfinance -- South Africa , Microfinance -- Bangladesh , Credit -- Management , Risk management , Poor -- Finance, Personal , South Africa -- Economic conditions , Bangladesh -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:980 , http://hdl.handle.net/10962/d1002714 , Grameen Bank , Microfinance -- South Africa , Microfinance -- Bangladesh , Credit -- Management , Risk management , Poor -- Finance, Personal , South Africa -- Economic conditions , Bangladesh -- Economic conditions
- Description: Among the reasons for financial exclusion is the fact that the poor, being largely illiterate and unemployed, are traditionally perceived as ‘bad credit risks’. This is the dominant perception of the poor in the formal credit markets – a perception that also exists in the microcredit sector. In other words, while information asymmetry is a recognized problem in lender-borrower relationships, lenders consider the problem particularly severe when they contemplate doing business with the poor. A contrasting paradigm, such as the one adopted by Grameen Bank of Bangladesh, views the poor as possessing economic potentials that have not been tapped – that is, as ‘good credit risks’. Grameen Bank’s microcredit features appear to have successfully mitigated the problems of information asymmetry and, to a large extent, made it possible for the poor to access microenterprise credit. Using the Grameen Bank model as a benchmark, this study examined the lending features of private sector microlenders in South Africa and those of KhulaStart (credit) scheme. The aim was to identify how the lending features affect microenterprise credit access. Primary data were obtained through interviews, while relevant secondary data were also used in the study. A key finding of the study was that while the Khulastart scheme was, like Grameencredit, targeted at the poor, the method of its delivery appeared diluted or unduly influenced by the conventional (private sector) paradigm that pre-classifies people as ‘good’ or ‘bad’ credit risks. As a result, the scheme was not robust enough to support microenterprise credit access. This has consequences for job-creation and poverty reduction. Based on the findings, the study maintains that a realistic broadening of microenterprise credit access will not occur unless there is a fundamental paradigm shift in microcredit practices, and unless measures designed to mitigate information asymmetries are sensitive to the historical, economic and sociocultural realities of the South African poor.
- Full Text:
- Authors: Akpan, Iniobong Wilson
- Date: 2005
- Subjects: Grameen Bank , Microfinance -- South Africa , Microfinance -- Bangladesh , Credit -- Management , Risk management , Poor -- Finance, Personal , South Africa -- Economic conditions , Bangladesh -- Economic conditions
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:980 , http://hdl.handle.net/10962/d1002714 , Grameen Bank , Microfinance -- South Africa , Microfinance -- Bangladesh , Credit -- Management , Risk management , Poor -- Finance, Personal , South Africa -- Economic conditions , Bangladesh -- Economic conditions
- Description: Among the reasons for financial exclusion is the fact that the poor, being largely illiterate and unemployed, are traditionally perceived as ‘bad credit risks’. This is the dominant perception of the poor in the formal credit markets – a perception that also exists in the microcredit sector. In other words, while information asymmetry is a recognized problem in lender-borrower relationships, lenders consider the problem particularly severe when they contemplate doing business with the poor. A contrasting paradigm, such as the one adopted by Grameen Bank of Bangladesh, views the poor as possessing economic potentials that have not been tapped – that is, as ‘good credit risks’. Grameen Bank’s microcredit features appear to have successfully mitigated the problems of information asymmetry and, to a large extent, made it possible for the poor to access microenterprise credit. Using the Grameen Bank model as a benchmark, this study examined the lending features of private sector microlenders in South Africa and those of KhulaStart (credit) scheme. The aim was to identify how the lending features affect microenterprise credit access. Primary data were obtained through interviews, while relevant secondary data were also used in the study. A key finding of the study was that while the Khulastart scheme was, like Grameencredit, targeted at the poor, the method of its delivery appeared diluted or unduly influenced by the conventional (private sector) paradigm that pre-classifies people as ‘good’ or ‘bad’ credit risks. As a result, the scheme was not robust enough to support microenterprise credit access. This has consequences for job-creation and poverty reduction. Based on the findings, the study maintains that a realistic broadening of microenterprise credit access will not occur unless there is a fundamental paradigm shift in microcredit practices, and unless measures designed to mitigate information asymmetries are sensitive to the historical, economic and sociocultural realities of the South African poor.
- Full Text:
- «
- ‹
- 1
- ›
- »