Banker S.A. April 2014 | Page 23

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4

Banking
landscape

1994

1999–2003

Dominated by Absa group,
the Standard Bank group, the
FirstRand Bank group, Investec
and Nedcor. They represent

83.8%

of the total

assets of the banking sector.

Consolidation
of the broader
banking sector:

22 banks

exit the South African banking
system (Saambou Bank placed
into curatorship in February
2002 & BOE Bank integrated
into Nedbank).

2004

38

Regulation
we

y

on

15

6

non-resident
controlled
banks (subsidiaries),

15
2

2001

February 2003.

• South Africa granted Financial Action Task Force

u

local branches of
international banks,
mutual banks.

(FATF) membership in

Europe, Australia, the US and
Asia
Standard Bank,
Absa, FirstRand,
Nedbank and Investec account

89%

for
of banking
assets in the country.
New entrants such as Capitec
serve niche markets.

2008–2014

• The Financial Intelligence Centre Act,
is implemented. Banks begin reporting as of

he

4

Big
banks expand into
international markets (Africa,

South African
controlled banks,

1994–2004
Small to mid-size banking crises:
• SARB adopts a policy framework for banks in distress
• Registrar of banks conducts a review of the status of
corporate governance practices in banks

e.

Banks expand into the
insurance sector

registered banks
in South Africa. Consists of:

and

gh

2010–2014

June 2003.

Basel II implemented in the SA banking

•

sector through the Banks Amendment Act, 2008

• US sub-prime mortgage crisis: SA banking sector
remains relatively stable due to:
- Prudent South African banks’ lending criteria
- Risk management systems fully
compliant by 1 January 2008.

Basel II

- January 2013,

Basel III framework becomes law.

ound

with

Sector
outlook

:

• Increased focus
on expansion into
Africa.

• South African banks have
strengthened ties with
the East in recent years.
• Barclays continued
growth of stake in Absa.

• Continued efforts to
tap into the unbanked
market.

• Continued innovation
and technology
developments will shape
the banking
landscape.

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