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The future role of financial intermediaries in the South African commercial paper market

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dc.contributor.author Kalmer CW en
dc.date.accessioned 2016-09-22T07:16:39Z
dc.date.available 2016-09-22T07:16:39Z
dc.date.submitted 1994 en
dc.identifier.uri http://hdl.handle.net/20.500.11892/10181
dc.description.abstract Commercial paper is an uninsured promissory note with a set or floating expire date. The issuer of the commercial paper promises to pay the rightful holder, the face value on its expire date. Legislation allowing the establishment of the South African commercial paper market was promulgated on 3 January 1992. Regulations controlling the issuing of commercial papers in terms of the Banking Act (94/1990), is published in the Government Gazette every January. Since 1990, the South African monitary authorities have encouraged the development of the local commercial market. Unfortunately, the development of the local market was hampered by the same problem experienced elsewhere in the world. The most crucial problem in the way of the local commercial paper market, is the attitude of certain banks towards commercial papers. Banks see commercial papers as a threat rather than a challenge to deliver an even better service to their multi-million corporate clients. Most companies are not keen on issuing commercial papers, as there is still a great deal of uncertainty among corporate treasurers with regard to legislation and the basic principles of commercial papers. The main goal of this study is to determine the future role that financial mediators might play in the creation of a formal and active South African commercial paper market, with due consideration of the current fluent economic and political climate. The secondary goals of this study are: the creation and description of certain guidelines for corporate treasurers and other possible participants in the South African commercial paper market; the creation of guidelines for prospective issuers of commercial papers; the creation of guidelines for prospective investors in commercial papers: the analysis and comparison of alternative financing and investment possibilities; the comparison between traditional banking corporate loans and the broker s fee income, which could be earned by acting as agent between corporate investors and loaners in the money market. South African banks will have to become involved with the commercial paper market, if it wants to remain relevant in the corporate market. The price of not becoming involved will be very high. The results will be lost market shares, which will need a great deal of effort and time to recover. South African bankers have a lot to learn from the experiences of foreign bankers and participants in the market. en
dc.language English en
dc.subject Business administration / Business leadership en
dc.subject Financial management en
dc.title The future role of financial intermediaries in the South African commercial paper market en
dc.type Masters degree en
dc.description.degree MBA en

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