Introduction to south african financial markets pdf

Financial markets and their economic functions a financial market is a market where financial instruments are exchanged or traded. Among the ongoing efforts to integrate financial markets is the east african common market protocol eacmp which was signed and ratified on july 1st. Capital flows, credit markets and growth in south africa. Understanding south african financial markets is an introductory text that should serve as a useful reference and guide for commerce students, public servants and members of the business fraternity alike. The south african reserve bank defines bank stability as the absence of the macro. The impact of the 4th industrial revolution on the south. The act leaves many south african financial markets unregulated. Before the year 1998, the foreign exchange market was only available to larger entities trading currencies for commercial and investment purposes through banks, now online currency trading platforms and the internet allow smaller financial institutions and retail investors access a similar level of liquidity as the major. Which sector leads in the process of financial development in south africa bankbased sector or stock market sector. Banking in subsaharan africa european investment bank. The market capitalization of the largest market south africa and egypt has dropped by about 40% and 50%, respectively. Understanding south african financial markets 4th edition. This includes such things as arranging payment for the sale of a product abroad, and providing working capital so that a. It gives people confidence to invest and save money.

Introduction to financial markets the bond market the south african money market an employee of a trading member who executes transactions in bonds traded on the jse interest rate and currency trading system must pass the following registered persons examinations modules. The highest growth has been experienced by the markets in west africa. Financial stability, both globally and within countries, generates jobs and improves productivity. A historical overview of the regulation of market abuse in south africa h chitimira summary in an early attempt to combat market abuse in the south african financial markets, legislation such as the companies act, the financial markets control act and the stock exchanges control act were enacted. A an exchange rate is just a price the foreign exchange fx or forex market is the market where exchange rates are determined. Amended by financial sector regulation act 9 of 2017 from 1 apr 2019. The importance of financial markets in economic growth stanley fischer1 citigroup it is always a pleasure for me to be in brazil. South african soes debt is about r700 billion and attracted interest of about r51 billion in the previous financial year according to national treasury.

A questionnaire was used to collect primary data to analyze the research problem. The introduction of reits to the south african property. Market structure and competition in the south african banking. This paper examines the role of the derivatives market in south africa and provides policy options for promoting the development of derivatives markets in subsaharan africa. Understanding the growth of african financial markets. The purpose of the advanced diploma in financial markets is to develop your knowledge of the discipline of financial markets and trading. Understanding south african financial markets 2012. The south african rand zar is the official currency of south africa.

Subscribe to our newsletters keep up to date with van schaik bookstore. You will gain a global and south african financial market perspective and an indepth understanding of the marketplace, which will give. Introduction 31 jul 2 role of financial markets system financial. To this end, the research covers these topics in depth in section 1b, south africa future state demands and pressures.

Pdf in this paper, a dynamic causal relationship between stock market development. Saifm the south african institute of financial markets. Upon completion of the certificate the student will be able to qualify as a registered person, in accordance with the requirements of the south african institute of financial markets saifm. He is available for training on, consulting on and building of nancial models, of both a derivative and a risk measurement nature. Understanding sa financial markets refer 9780627036293 isbn number. Introduction the certificate in financial markets is aimed at persons with a keen interest in financial markets, but who have little or no experience.

Financial markets act 19 of 2012 south african government. This book examines the dynamics in capital flows, credit markets and growth in south africa. The research focuses on the market performance of 15 african. Earn a certificate from a worldclass university as powerful proof of your new competencies and use it to differentiate yourself and get recognised in the job market. Npsd south african reserve bank omar karim senior supervisor albaraka bank tanya knowles executive director fractal solutions strate michele maffei head of global markets digital standard bank fabian manual chief technology officer finbond mutual bank. South african airways group integrated report for the year ended 31 march 2017.

Robust banking systems and capital markets efficiently flow funds toward their most productive uses, help governments raise investment capital, maintain financial safety nets and speed payments. Understanding south african financial markets download. Each chapter starts with study objectives relevant to the material covered. South africa, financialisation, financial sector, banking, inequality, financial. Introduction competition is the main driver of strong and effective markets, encourages firms to innovate. These fundamental changes in public finance are characterised by the fact that public service, in general, in south africa has evolved as well and is still in the. This is partly due to historical reasons, but also due to the preferences of the current government. Financial markets take many different forms and operate in diverse ways. Pdf financial intermediaries versus financial markets. Prior to february 1983, and between september 1985 and march 1995, the south african reserve bank maintained a dual exchange rate for the rand, consisting of the commercial and financial rand. Often, they are called by different names, including wall street and capital market, but all of them still mean one and the same thing. Jan 18, 2016 the south african economy depends heavily on the manufacturing sector that forms. South african institute for financial markets saifm to finance the development of a learnership in financial markets. South africas banking sector is still highly concentrated with the five largest banks holding over 90% of total assets in february 2019.

The paper presents stylized facts on the trends and patterns of financial development in africa since the 1970s, discusses the size and performance of african stock markets, and summarizes the findings from existing empirical studies on the effects of. It is especially a pleasure to be here at a time when brazil appears successfully to have surmounted the crisis of last year, and to be on a path that will lead to renewed growth with low inflation. Financial markets and stability arif ismail divisional head oversight. The money supply in south africa is, inter alia, influenced by the gold price, because south africa is. Pdf financial markets and economic development in africa.

Amended by financial sector regulation act 9 of 2017 from 1 apr 2018. The manufacturing sector also provides the largest workforce among all sectors. Enjoy a personalised, peoplemediated online learning experience that constantly achieves unprecedented course completion rates. Saa 5, mango 7, with some markets served by both airlines 25 regional destinations, saa 24, mango 1 8 international destinations served by saa. Total assets of all types of registered banks stood at r5. The project team expresses its gratitude to the following executives of south african financial institutions, innovators, regulators, policymakers and subject. There are 30 foreign banks with approved representative offices in south africa.

Introduction 4 one of the most pressing issues for africa is to channel existing resources into the appropriate sectors to stimulate productivity, create employment, provide people and enterprises with basic utilities, and contribute to efficient natural resource management. Mozambique, seychelles, south africa absa bank, tanzania barclays bank. Globally the financial performance of mining companies improved significantly from the previous year. Goodspeed, 2012, van schaik publishers edition, in english 4th ed. Karin van wyk is the ceo of the south african institute of financial markets, a professional institute that conducts examinations for the financial markets and the jse. Understanding sa financial markets 5 karin van wyk.

The decline was mainly related to activity in africa, where the total ecm activity dropped by 69% in terms of value and 46% in terms of volume compared to 2018, and where the johannesburg stock exchange jse, africas largest bourse, saw no capital raised via ipos. Introduction to the financial markets eagle traders. Banking in subsaharan africa recent trends and digital financial inclusion. Challenges and opportunities for health finance in south. The workshop provides an introduction to the principal elements of the regulatory environment for south african financial markets. Understanding south african financial markets by karin van wyk, ziets botha, i. Regulation and ethics of the sa financial market introduction to. Financial market analysis 20 stellenbosch university. The stock, bond and money markets provide an 2 guide to financial. Read pdf understanding south african financial markets 4th edition effect of different markets on each other can, however, clearly be seen in the south african context. Lesotho, swaziland7, and later namibia 1993, introduced and kept their own currencies. South africa s financial markets have likewise been buffeted by the international turmoil, losing nearly half its market cap value over 2008.

Financial market analysis is a postgraduate economics course offered in the second. This oneday workshop will assist participants to practically manage regulatory changes, particularly those introduced and proposed after the 200708 financial crisis. The significance of south africas capital markets in the economy is sub stantial. However, by january this year the jse all share index had almost recovered to its precrisis end of day high of 33233 reached. The south african prefunded health finance market is a complicated system that functions via fragmented risk pools under separate regulatory regimes for medical schemes and health insurance, respectively. The importance of financial markets in economic growth. Overall ecm activity in 2019 declined in value and volume by 44% and 29% respectively, compared to 2018. Amended by financial services laws general amendment act 45 of 20 from 28 feb 2014.

The recent financial crisis has however, led to a drop in market capitalization in africa in 2008. Financial modelling agency is the name of the authors consultancy. The market for prefunded healthcare products is dominated by. Financial markets, from the name itself, are a type of marketplace that provides an avenue for the sale and purchase of assets such as bonds, stocks, foreign exchange, and derivatives. Second hand books r150 each, fac2601 revise auditing notes for south african students 6th edition 2007. She was a summer intern in the african department when this paper was written. Van schaik articles further reading from articles will also be provided. Their significance implies that any efforts by african governments to reduce political risk and improve institutions, implement more open trade and sound economic policies, and protect creditor rights can stimulate banking sector. The regulation and ethics of the south african financial markets compulsory module introduction to the financial markets compulsory module the equity market elective module the bond market.

Subsequently, option contracts were introduced in october. South africa 161 211 233 277 294 178 246 south africa 426 403 388 401 422 425 363 swaziland 10 10 877 s w aziland 5 6 66675 zambia 17 8 14 11 21 zambia 12 15 14 15. The paper looks at the state of african stock markets during and after the global economic crisis of 2008. The preponderance of recent evidence on the nexus between financial development and economic growth suggests a financeleadinggrowth relationship. For the year ended 31 march 2017 south african airways.

Second, this chapter presents the instruments used in currency markets. An analysis of competition, efficiency and soundness in. The financial markets act is a very narrow act it focuses primarily on regulation of financial market infrastructures and posttrade requirements. Understanding south african financial markets has been compiled by practitioners from the financial markets and experienced faculty members in economics and financial management. Financial markets provide the following three major economic functions. According to a december 2010 article by the south african government communication and information systems nowdefunct buanews news service, south africa was said to compare well to other emerging markets on affordability and availability of capital, financial market sophistication, business tax rates and infrastructure, but to fare poorly on. Defining success in south africa depends on a thorough understanding of the goals, needs, and demands of stakeholders in the market. The state of african stock market supervisor arcada. Promoting the effective functioning of the domestic financial markets and contributing to the banks financial stability mandate through effective market monitoring, gathering of market intelligence and ensuring the banks activities in the markets support financial stability.

Managing the countrys official gold and foreign exchange reserves. Online short courses toptier universities getsmarter. Nov 21, 2019 produced in partnership with the african securities exchanges association, this collection of essays includes the perspectives of authors in local markets who provide their analysis of the history, current developments, and future outlook for south africa, nigeria, mauritius, ghana, zimbabwe, morocco, egypt, botswana, and east africa. Students in financial management and monetary economics will find this a helpful aid to understanding the financial markets in south africa. That position was to a large extent mirrored by south african bulk commodity producers with iron. It gives the reader an overview of how the various institutions in the south african financial system operate, as well as the different. This is a course which attempts to apply the theory of nance to the unique features of south african markets. Introduction this study comes at a time when most ssa economies have slowed significantly, after a. The authors explore the role of global economic growth, policy shifts and various economic policy uncertain. The banking industry in south africa 2019 research and markets. Given the fragmented nature of players in the african financial markets and the level of risk associated with africa, the investment capacity of institutional investors remains limited among stringent capital allocation decision process and financial markets are still small, narrow and illiquid introduction 7. Introduction to financial markets 2 credits the purpose of this module is to cover the basic concepts of financial markets and the characteristics and relevance of the different financial markets present both locally and internationally. South africa s derivatives market has grown rapidly in recent years, supporting capital inflows and helping market participants to price, unbundle and transfer risk.

Fassets board decided in principle to support such a learnership, but requested research to look into the viability of the learnership. The stock market is worth almost twice the countrys output, and is larger than the bourses of, for example, mexico, indonesia and turkey. Understanding south african financial markets 6th edition. In recent years, derivatives markets have been brought. Regulation and ethics of the sa financial market introduction to financial markets the bond market. This site is like a library, use search box in the widget to get ebook that you want. The impact of the 4th industrial revolution on the south african financial services market. This report is based on the work of an imf financial sector assessment program fsap mission to south. Given the dynamics in the global financial sector and the increased integration of financial markets of african countries, it is likely that the levels of competition in these countries has changed over time. The stock market is worth almost twice the countrys output, and.

The public finance management system in south africa has gone through fundamental changes and is still under transition, especially after south africas democratization in 1994. The south african mining landscape overview the 2018 financial year proved to be a challenging year for south african mining companies. Research on financial markets and policy, and habil olaka, chief executive officer, kenya bankers. This kind of nexus is particularly important to africa, where sustainable growth has been more elusive than in other continents. The south african money market an employee of a trading member who executes transactions in bonds traded on the jse interest rate and currency trading system must pass the following registered persons examinations modules. An introduction about the author alexander pierre faure graduated from elsenburg agricultural college after school and went on to stellenbosch university where he graduated with ba commerce, hons ba economics, ma economics, and phd economics.

Jun 25, 2019 the asian financial crisis was a series of currency devaluations and other events that spread through many asian markets beginning in the summer of 1997. The south african economy depends heavily on the manufacturing sector that forms. Click download or read online button to get understanding south african financial markets book now. After a bad harvest, those early farmers would have needed to obtain seed for the next seasons planting, and perhaps to get food to see their families through. This chapter examines the current state of financial development in africa, especially as regards its relevance as a. South african airways group integrated report for the year ended 31 march 2017 9 creating sustainable value. But all of them, whether highly organised, like the london stock exchange, or highly informal, like the money changers on the street corners of many african capitals, serve the same basic functions. Understanding south african financial markets just r300 whats up 0715123291 or phone 08122428 added.