No 12: The influence of socio-political developments on banks in South Africa, 1992 - 1997
S J van der Walt
Last Modified Date:
2020-10-01, 09:31 PM
Publications > Occasional Papers
Socio-political developments, in conjunction with the transformation and black empowerment process, culminated in significant changes in the South African society and the economy at large, especially after a new government took office early in 1994. These developments opened up the banking system to many new entrants joining the formal economy. As the entry of a significant number of new participants availing themselves of banking services could well have caused a change in the banks' liability and asset structure which, in turn, could have implications for policy operations, this paper attempts to determine whether a structural change can in fact be determined. New entrants making use of banking services for the first time will logically consist mainly of previously disadvantaged individuals and companies predominantly involved in black empowerment operations. This empirical analysis will therefore concentrate mainly on the growth in deposits with banks of, and bank credit extended to individuals and companies. Other parties involved will only be touched upon briefly. As detailed information is only available as from December 1991, this note will cover the period from that date until the end of December 1997.