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Regulation, deregulation, and internationalisation in South African and New Zealand banking

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  • John Singleton
  • Grietjie Verhoef

Abstract

The banking industries of New Zealand and South Africa were among the most tightly regulated in the western world in the early 1980s. Restrictions on foreign banks were particularly acute, especially in South Africa. From a position of considerable isolation, first New Zealand then South Africa implemented programmes of financial liberalisation. We show that the outcome of liberalisation was different in these two countries. South African banks were able to establish a strong presence in external markets, but the New Zealand banking system was mopped up by its Australian neighbour. These divergent outcomes reflect the origins, geographical position, and unequal capabilities of the New Zealand and South African banking industries.

Suggested Citation

  • John Singleton & Grietjie Verhoef, 2010. "Regulation, deregulation, and internationalisation in South African and New Zealand banking," Business History, Taylor & Francis Journals, vol. 52(4), pages 536-563.
    • Handle: RePEc:taf:bushst:v:52:y:2010:i:4:p:536-563
    DOI: 10.1080/00076791003753152
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    References listed on IDEAS

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    Cited by:

    1. Luis A. Gil-Alana & Christophe André & Rangan Gupta & Tsangyao Chang & Omid Ranjbar, 2016. "The Feldstein--Horioka puzzle in South Africa: A fractional cointegration approach," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(7), pages 978-991, October.
    2. McKenzie, Rex A, 2016. "Financial and Corporate Structure in South Africa," Economics Discussion Papers 2016-5, School of Economics, Kingston University London.
    3. John O S Wilson & Linh Nguyen & Anna Sobiech & Lechedzani Kgari, 2024. "Bank business model identification evolution and outcomes evidence for South Africa," Working Papers 11059, South African Reserve Bank.
    4. May Chu, 2020. "Horses for courses: China's accommodative approach to food standard‐setting in response to the internationalization of regulation," Regulation & Governance, John Wiley & Sons, vol. 14(3), pages 514-530, July.
    5. Grietjie Verhoef, 2011. "“Global since Gold†The Globalisation of Conglomerates: Explaining the Experience from South Africa, 1990 – 2009," Working Papers 238, Economic Research Southern Africa.
    6. Vasudeva N.R. Murthy & Natalya Ketenci, 2021. "The Feldstein–Horioka hypothesis for African countries: Evidence from recent panel error‐correction modelling," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5762-5774, October.
    7. Eberhardt, Markus & Presbitero, Andrea F., 2021. "Commodity prices and banking crises," Journal of International Economics, Elsevier, vol. 131(C).

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