South Africa - Banking Systems South Africa - Banking Systems
- The South African Reserve Bank (the country's central bank)
- Private sector banks (commercial banks, merchant banks, and general banks)
- Mutual banks
South African banks hold the first six places among the top 100 banks on the African continent. Four large banks dominate, with Standard Bank of South Africa, Nedbank, ABSA (Amalgamated Bank of South Africa), and FirstRand Bank collectively accounting for around 85% of banking services in South Africa. A New banking entity, Capitec, has made significant inroads into the unbanked and entry-level banking segment. In total, there are approximately 70 foreign banks operating in South Africa, either via representative offices, branches, subsidiaries or joint ventures with local companies. These are listed here.
International banks in the country have focused on offshore lending (where they have a competitive advantage because of their low overhead and their ability to raise funds at comparatively favorable rates), as well as treasury activities for corporate clients and government.
All banks offer a comprehensive range of products and services through extensive branch and electronic banking infrastructures, serve a wide customer base, and have the characteristics of universal banks.
Based on population numbers, South Africa does not appear to be “over-banked,” as one branch exists for approximately every 9,500 persons. However, a large portion of the population does not have access to normal banking services and uses only a few products. Many Black South Africans tend to save outside of the formal banking sectors and choose to save in cooperative savings institutions called “stokvels.” Excluding the non-banked segment of the population, market intelligence estimates that there is one branch for every 3,200 persons. Electronic banking has become commonplace. The four largest retail banks set cost and service standards. Attempts by authorities to make the banking sector more cost-effective and service orientated, especially to new entry-level clients, have met with limited success.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.