There is a widely held belief that the entrance of Patrice Motsepe’s TymeBank, Adrian Gore’s Discovery Bank and Michael Jordaan’s Bank Zero will shake up SA’s banking industry and even make a dent in the dominance of the big five banking titans.
In the next decade at least, SA’s big five retail banks – Absa, FNB, Nedbank, Standard Bank, and Capitec – will still dominate and rule the banking roost. Naidoo said he is optimistic that the market share of SA’s biggest five banks will probably decline in the next 10 years, not to the 60% mark but between 75% and 80%.I am quite optimistic that newer players, with the right levels of economic growth and in the right regulatory environment, will begin to gain market share. We will see a more competitive sector,” he said at the release of the Prudential Authority’s report on Thursday 4 July.
SA Reserve Bank Governor Lesetja Kganyago said every banking crisis results in a concentration of banks in the sector. “Unlike other countries, we [SA] have not experienced a banking crisis and that has provided an opportunity for other players to enter. Whereas, there hasn’t been a new banking licence issued in the US over the past 10 years,” he said.SA’s big five banks are still profitable.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: mailandguardian - 🏆 2. / 92 Read more »
Standard Bank and Citi have highest earnings from investment banking feesOf the $227m earned by investment banks in the first half of 2019, Standard Bank topped the tables with a 14% market share
Source: BDliveSA - 🏆 12. / 63 Read more »