Bank strategic and risk management: A survey to determine the impact of the current world financial crisis on future bank management in South Africa

Abstract

The purpose of this research was to determine how the banks in South Africa perceive the future of bank management and banks risk management over the next couple of years within the context of the financial crisis that recently played out globally. It is clear from the survey results that South African (SA) banks were not affected as much by the crisis as some of their international counterparts. Primarily because of the credit legislations introduced in SA recently. Other reasons may be due to conservatism and sufficient capitalisation of banks and less involvement in global markets where major problems were experienced. The survey indicates that SA banks are prepared to learn from the crisis and are planning to improve financial risk management. Consolidation or centralisation of the risk management functions may be prevalent. According to the survey, liquidity risk management that used to be a fairly low risk management priority in previous bank and treasury surveys, now tops the list of important risks te better manage in the future.