Cost and profit efficiency of listed South African banks pre and post the financial crisis

Toit, Elda du; Cuba, Yolanda Z.

doi:10.1016/j.ribaf.2017.07.175

Cited by 13 publications

(1 citation statement)

References 34 publications

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“…The Finbond Group Limited as well as unlisted banks in South Africa are not considered due to the unavailability of data. Nevertheless, the listed banks comprise of more than 85% of all banking assets in the South Africa banking sector (Du Toit and Cuba, 2018). The sample period covers years 2010-2022.…”

Section: Datamentioning

confidence: 99%

The Impact of COVID-19 on Banking Sector Returns, Profitability, and Liquidity in South Africa

Peerbhai,

Kunjal

2024

IJEFI

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The COVID-19 pandemic, which initially started as a health crisis, has had widespread economic impacts on various industries in the global economy. The banking sector, in particular, was significantly impacted by fiscal and monetary responses which were implemented to reduce the closure of several businesses and stabilize markets. Given that banks are regarded as systemically important financial institutions, this heightened uncertainty increased the possibility of a financial crisis because instabilities in the banking sector could have further detrimental effects on national and global economies. Therefore, the objective of this study was to explore the effect of the COVID-19 pandemic on the South African banking sector. To achieve this objective, the study analysed the returns, profitability, and liquidity of banks listed on the Johannesburg Stock Exchange using a panel regression approach. Together, the results of the study revealed that the profitability and liquidity of banks were negatively impacted by the COVID-19 pandemic, however, the excess bank stock returns generated by investors were not affected. These findings may serve as reference to policymakers when developing policies which regulate the banking sector in order to improve performance and ensure liquidity during periods of increased market uncertainty.

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Section: Datamentioning

confidence: 99%