The Non-Banking Sector in the Wall Streets of the South African Economy

The role of banking institutions according to World Bank records on development has been constrained. There is need for a continued economic development in emerging economies like South Africa, and this has led to the emergence and rise of the non-banking financial institutions (NBFIs). NBFIs are institutions that exist in the fiancé industry with no full banking licences, their need in third world countries is now imperative. NFBIs exist in different dimensions, but we are going to focus on Funds (pensions and mutual funds) and Insurance schemes (funeral, life and retirement schemes). These institutions have the ability to rejuvenate, boost and support economic growth and development in growing economies fast than banking institutions. Our aim is to ascertain this claim using a comparative analysis. Our results suggest that, NBFIs are the strong wall streets of economic development provided they are well managed. Banking institutions are strong but the NBFIs have the ability to boost economic points through massive investment support. In more overall terms, the relationship between the NBFIs and economic growth were virtuously strong and positive. For the Banking institutions case, the results were positive but not strongly comparable to the NBFIs. We concluded that, the role of the NBFIs is more pronounced in economies and environments with pronounced financial regulations and support. To ensure high blooming economic trends, priority and attention should be paid to both NBFIs and Banking ones.