| |
Financial Infrastructure
The fast facts on the South African
Financial infrastructure are as
follows:
- Market capitalization of all
securities listed on the JSE amounted
to R1,7 trillion in May 2001.
- Turnover for shares for 2001
(excluding arbitrage transactions)
was R536,9 billion in four million
deals - a 2,5% increase in Rand
terms on the previous year. The
JSE's liquidity was 39,1% compared
to 34,6% in 1999.
- The year-on-year percentage
change for the JSE's indices (2000)
were:
- All Share Index (13,7%)
- All Gold Index (43,2%)
- Financial Index (-2,2%)
- Industrial Index (-2,8%)
- The combined resources of the
Safex for 2000 were R155 million
(a growth of 30%).
- By March 2001, BESA listings
had granted approximately 250
bonds, issued by 32 institutional
borrowers, with a total nominal
value of R421 billion. 2000's
turnover exceeded RR10,7 trillion
(a turnover of twenty-eight tomes
market capitalization). A further
R338 billion was traded OTC. In
2000, turnover was R42 billion
daily.
South Africa's formal banks comply
with international banking standards
and offer one of the most sophisticated
banking systems in the world. Customers
have online, real-time, nationwide
access to bank accounts 24 hours
a day, 365 days a year.
SA's political transformation,
together with the relaxation of
exchange controls and the liberalization
of African economies, has meant
that SA has become an increasingly
valuable port for Africa. It is
now well positioned to provide global
services through its own banks'
foreign offices and the increasing
presence of foreign bank representatives
in SA.
Banking in SA is conducted by (Source:
South Africa Business Guidebook
2001 / 2002):
- Four major banking groups with
national distribution networks
and assets in excess of R120 billion
- Two large sized banking groups
with assets in excess of R40 billion
- One medium sized bank with assets
exceeding R14 billion
- 25 small banks with assets of
less than R7 billion
- 25 micro banks with assets of
less than R1 billion
- Three mutual banks
- Nine foreign controlled banks
- 15 branches of foreign banks
- 55 foreign banks' representatives
Most of the market segments are
dominated by the "Big Six"
banks which are:
- ABSA
- BOE
- First Rand
- Investec
- Nedcor
- Standard Bank
The combined assets of these "Big
Six" banks account for about
88% of the market. The merging of
banking, insurance and investment
services, to create 'bancassurance',
has been a major industry trend
as local companies try to reduce
costs and broaden service provision
to promote global competitiveness.
|
|
