South African Journal of Economic History - latest Issue
Volumes & issues
Volume 24, Issue 2, 2009
Source: South African Journal of Economic History 24 (2009)More Less
Rik, as he was known to members of the Economic History Society, retired as Treasurer of the Society in 2009. Dr Goedhuys has enjoyed a long and distinguished career. From beginning his studies in the Netherlands and Sweden, he moved to South Africa where he embarked upon his study of the country's economy at Stellenbosch University. Successively Professor of Economics at Unisa (1967-1970) and Professor of Finance at the University of the Witwatersrand (1972-1977), he moved into the real world as Advisor to the South African Reserve Bank from 1981 to 1989. This led to his becoming a consultant to the International Monetary fund, the World Gold Council and the National Treasury. His work with the International Monetary Fund included an onerous investigation of the central banks of Malawi and Angola.
South African trust companies and boards of executors and the 1942 Bank Act
From self-regulating 'financial aristocrats' to statutorily controlled deposit-receiving institutionsAuthor Anton EhlersSource: South African Journal of Economic History 24, pp 1 –42 (2009)More Less
From the inception of the first trust companies and boards of executors in the first half of the 19th century, these institutions have played a prominent role in the local communities in which they functioned. Despite this local prominence, the wider community and the monetary authorities were mostly unaware of the wide array of services they provided and the growing extent of the total funds under their administration. Recognition of their contribution as an important role player - a 'pillar' - in the South African financial services sector was therefore a slow process which gained momentum only in the 1930s.
Prudential regulation, its international background and the performance of the banks
A critical review of the South African environment since 1970Source: South African Journal of Economic History 24, pp 43 –81 (2009)More Less
The international financial crisis that emerged in 2007 and hit with full force in 2008 had its roots in the banking sector and specifically in the management of risks associated with securitised mortgages. While there were many causes for the crisis, the failure of prudential regulation is amongst the most important, and the severity of the subsequent crisis has underlined the role of prudential regulation in a modern financial system.
Author Arnaldo MauriSource: South African Journal of Economic History 24, pp 82 –130 (2009)More Less
Ethiopia may be ranked among the longest surviving states, not only in Africa, but in the world, as it has a history going back to the ancient Axumite kingdom (first century AD). In fact, this inland country, because of the mountainous nature of the territory and the indomitable spirit of its inhabitants, has been able to preserve its independence, national identity and cultural heritage throughout the centuries - unlike most African countries.
Banking in Ethiopia (previously known as Abyssinia) began when the Bank of Abyssinia was established in 1905. In 1931, however, this institution was liquidated, and its assets and liabilities as well as its premises and staff were taken over by the newly established state-owned Bank of Ethiopia. The Bank of Ethiopia, in turn, closed its doors after the occupation of the country by the Italian army in 1936.
Author Andrie SchoombeeSource: South African Journal of Economic History 24, pp 131 –156 (2009)More Less
The importance of a well developed financial sector for economic development and the upliftment of the poor is widely recognised and well researched theoretically and empirically. In this context access to financial services for those normally excluded, generally the poor, has an important role to play. This is also acknowledged locally. The South African Reserve Bank (SARB), for example, has alluded to the value of broadening access to financial services and how to attain this in numerous of its Bank Supervision Department's Annual Reports. In this paper the focus falls on access, or more correctly, the problem of access to formal credit, transaction (deposit, payment) and saving services - hereafter basic banking services - for South Africa's poor (LSM categories 1-4). The more affluent do not experience serious access problems; since 2004, between 87 and 90 per cent of those classified in LSM 7-10 have had access. Access to basic banking services has increased significantly since 1990, though for the poor the improvement only came about in the latter part of the study period. Major institutional changes that have impacted on access include the exemption from the Usury Act of loans below R6 000 in 1992 and the launching of the Mzansi basic bank account in October 2004. This paper aims to describe and analyse, since 1990, the actual changes in access experienced by those previously excluded from basic formal financial services in South Africa, the demand and supply constraints to access, and government actions that have played an important role in either impeding or opening-up access.
Concentration and competition
The changing landscape of the banking sector in South Africa 1970-2007Author Grietjie VerhoefSource: South African Journal of Economic History 24, pp 157 –197 (2009)More Less
The banking sector in South Africa has been dominated by British-owned banks since the second half of the nineteenth century, both in nature and size. In the Cape Colony privately incorporated banks were only permitted after 1823. By the early 1830s 28 local banks thrived in the agricultural prosperity of the colony. In 1860 The London & South Africa Bank was the first of the Imperial banks to open its doors, followed by Standard Bank in 1862. Four successive bank crises in the Cape Colony in 1865, 1876, 1881 and 1890 practically wiped out the local independent banks, leaving only two British banks, Standard Bank and Bank of Africa, established in 1880 out of remnants of the Oriental Banking Corporation. By 1890 only seven banks remained active in the Cape Colony.
Keynes and macroeconomics after 70 years : Critical assessments of the General Theory, L. Randall Wray & Matthew Forstater (Eds.) : book reviewAuthor Stan Du PlessisSource: South African Journal of Economic History 24, pp 198 –204 (2009)More Less
Keynesian Economics is resurgent. It is not just card-carrying Keynesians - Paul Krugman comes to mind - but economists from a distinctly more classical pursuasion, like Richard Posner, who are discovering or rediscovering Keynes. Events are driving this intellectual tide, with the international financial crisis bringing similar intellectual and policy challenges for modern economies and economists to those of the Great Depression and the generation of Keynes.