OVERVIEW
Banking and financial services Despite general economic concerns, South African banks have increased operating income.
SECTOR INSIGHT ZAR X is South Africa's newest stock exchange.
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he South African banking and financial-services sector has a good international reputation because of a strong regulatory and legal framework. The sector provides a full range of services including commercial, retail and merchant banking, mortgage lending, insurance, auditing and investment. The South African Reserve Bank (SARB) is the central bank and falls under the National Department of Finance. It sets monetary policy and decides on domestic interest rates. The SARB oversees the bankingservices sector, while the Financial Services Board (FSB) governs the non-banking financial-services industry. The Banking Association of South Africa represents all registered banks, local and international. Major subcommittees oversee capital supervision, credit risk, consumer affairs and the SA Securities Lending Association. The national stock exchange, the JSE Ltd, is the largest stock exchange in Africa and consistently ranks in the world’s top 20 derivatives exchanges by number of contracts traded. Listed total market values of the companies on the JSE amount to R14.7-trillion. The AltX is a division of the JSE and attracts a range of small and medium-sized high-growth companies, but the JSE will face competition after the ZAR X launched in October 2016. The new exchange is looking to attract trading in black empowerment shares in particular. SOUTH AFRICAN BUSINESS 2017
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In the retail banking sector, despite really tough economic conditions in recent months and years, South Africa's Big Four (Standard Bank, Absa, First National Bank (FNB) and Nedbank) increased headline earnings by 5.7% in the second six months of 2015, to R34.6-billion. Profits across the Big Four totalled R73.8-billion in the year, according to a survey done by PWC (Major Banks Analysis). Relative newcomer Capitec Bank has shown remarkable growth with its low-cost offerings: a cheque account, a savings account and an unsecured loan. Capitec was established in 2001 and listed on the JSE in 2002. As of August 2015, Capitec had 691 branches, a rapid increase over the benchmark figure of 500 that was achieved in January 2012. Capitec customers can also draw cash in retail stores such as Pick n Pay, Boxer and Shoprite. In early 2016 the bank had 6.7-million customers (as opposed to "clients", people for whom Capitec is their primary