The participation of dedicated banks in the National Payment System as clearing and settlement banks

Geldenhuys, Rian (2006-12)

Thesis (MBA)--Stellenbosch University, 2006.

Thesis

ENGLISH ABSTRACT: The National Payment System is currently dominated by uncompetitive banks and there is growing resistance by the South African public over the current fees being charged. The legislature is proposing a new Bill which aims at creating a new category of banks, namely Dedicated Banks. These Dedicated Banks will have lower capital requirements, thus making it more attractive to establish a Dedicated Bank. The aim of the Dedicated Banks Bill is to bring banking services to the masses. The Dedicated Banks may provide banking services to consumers at much more competitive fees. The aim of this study is to determine whether Dedicated Banks will be allowed to participate in the National Payment System as clearing and settlement banks. A detailed review is conducted of the current National Payment System, the framework in which it operates and incentives currently underway to guide the modernisation of the National Payment System. A critical analysis of the legal framework of the National Payment System in conjunction with the Dedicated Banks Bill is undertaken to determine whether there is any legislative scope for allowing Dedicated Banks to participate in the National Payment System. An assessment of the competitive environment of the National Payment System is given to determine whether regulators may consider allowing Dedicated Banks their participation as clearing and settlement banks. The arguments presented are confirmed by the Reserve Bank's 2010 vision for the National Payment System which confirms the conclusions reached that Dedicated Banks may indeed participate in the National Payment System as clearing and settlement banks. The risk which participants may introduce into the National Payment System is investigated in order to determine whether this may pose as an additional barrier to Dedicated Banks' participation as clearing and settlement banks.

AFRIKAANSE OPSOMMING: Die Nasionale Betalingstelsel word huidiglik gedomineer deur onmededingende banke en daar is groeiende weerstand deur die Suid-Afrikaanse publiek oor die huidige fooie wat gevra word. Die wetgewer het 'n nuwe konsep wet voorlê wat daarop gemik is om 'n nuwe kategorie van banke daar te stel, naamlik Toegewyde Banke. Hierdie Toegewyde Banke sal laer kapitaal vereistes he, wat dit aantrekliker sal maak om 'n Toegewyde Bank op die been te bring. Die doel van die konsep wet is om bankdienste aan die massas te bring. Die Toegewyde Banke mag moontlik bankdienste aan kliente bied teen meer mededingende fooie. Die doel van hierdie studie is om vas te stel of Toegewyde Banke toegelaat gaan word om deel te neem aan die Nasionale Betalinstelsel as verrekeningsbanke. 'n Omvattende ondersoek word onderneem van die huidige Nasionale Betalingstelsel, die raamwerk waarbinne dit werksaam is en huidige pogings wat onderweg is vir die modernisering van die Nasionale Betalingstelsel. 'n Kritiese analiese van die regsraamwerk saam met die konsep wet word vervat om sodoende vas te stel of daar enige wetlike weg is om Toegewyde Banke toe te laat om deel te neem aan die Nasionale Betalingstelsel. 'n Vasstelling van die mededingende omgewing van die Nasionale Betalingstelsel word weergegee om vas te stel of die regulatoriese instansies dit mag oorweeg om Toegewyde Banke toegang te verleen as verrekeningsbanke. Die argumente wat voorgele word, word ondersteun deur die Reserwebank se 2010 visie vir die Nasionale Betalingstelsel wat die konklusies wat gemaak word ondersteun, naamlik dat Toegewyde Banke wel mag deelneem aan die Nasionale Betalingstelsel as verrekeningsbanke. Die risiko wat deelnemers aan die Nasionale Betalingstesel mag bring word ondersoek om sodoende vas te stel of dit enige verdere hindernis vir Toegewyde Banke se deelname as verrekeningsbanke mag bring.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/50664
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