South african financial instruments? (2024)

South african financial instruments?

A financial instrument is a monetary contract between two parties, which can be traded and settled. The contract represents an asset to one party (the buyer) and a financial liability to the other party (the seller).

What is financial instruments in South Africa?

A financial instrument is a monetary contract between two parties, which can be traded and settled. The contract represents an asset to one party (the buyer) and a financial liability to the other party (the seller).

What are the financial systems used in South Africa?

Currently there are four major systems, the Personal and Salary Administration System (PERSAL), Basic Accounting System (BAS), Financial Management System (FMS) and Logistical Information System (LOGIS) that are maintained by the National Treasury for national and provincial departments.

What is the financial body in South Africa?

The Financial Sector Conduct Authority (FSCA) is a statutory body that supervises market conduct in relation to the provision of financial products and financial services in South Africa, including the conduct of financial institutions licensed in terms of various financial sector laws, such as banks, insurers, ...

What financial assets are traded in Johannesburg financial market?

The Johannesburg Stock Exchange (JSE) has operated as a market place for the trading of financial products for 130 years, connecting buyers and sellers in equity, derivative and debt markets.

What is financial accounting South Africa?

When you study a financial accounting course in South Africa, you will learn how to: Record financial transactions using the double-entry system. Draw up financial statements (income statements, balance sheets and cash flow statements) in accordance with the generally accepted accounting principles (GAAP).

What are the 3 main categories of financial instruments?

There are typically three types of financial instruments: cash instruments, derivative instruments, and foreign exchange instruments.

What is banking system of South Africa?

Banking in South Africa is centred on the South African Reserve Bank (SARB), which is the monetary authority and controls gold and foreign exchange reserves.

What are the basic economic systems in South Africa?

South Africa has a mixed economy in which there is a variety of private freedom, combined with centralized economic planning and government regulation.

Who manages South Africa's finances?

The Treasury manages national economic policy, prepares the South African government's annual budget and manages the government's finances.

What are the three regulatory bodies in the finance industry in South Africa?

the FSR Act created a prudential regulator, the Prudential Authority (PA) and a market conduct regulator, the Financial Sector Conduct Authority (FSCA). The PA is responsible for regulating banks, insurers, cooperative financial institutions, financial conglomerates and certain market infrastructures.

What is the largest financial institution in South Africa?

Standard Bank, South Africa's largest bank, offers a variety of retail and commercial banking, corporate and investment banking, investment management, and life insurance services through about 700 locations in its home country.

How many financial institutions are there in South Africa?

As of October 2023, the number of domestic banks registered in South Africa amounted to 18, while there were 12 local branches of foreign banks. Furthermore, some 29 foreign banks had approved representative offices in the country.

What is the South African stock exchange called?

Johannesburg Stock Exchange (JSE) is South Africa's only full-service securities exchange, connecting buyers and sellers in five different financial markets: equities, equity derivatives, commodity derivatives, currency derivatives and interest rate instruments.

What is the largest stock exchange in South Africa called?

The JSE is currently ranked the 17th largest stock exchange in the world by market capitalisation and the largest exchange in the African continent. The JSE was formed in 1887 during the first South African gold rush.

Who invests the most in South Africa?

Traditionally, European countries are active investors in South Africa (United Kingdom, Netherlands, Belgium, Germany and Luxembourg), as well as the United States, Japan, China, and Australia. Most of the investments are directed to the financial, mining, manufacturing, transportation and retail sectors.

What is the difference between finance and accounting in South Africa?

The primary difference in the battle of accounting vs finance is that accounting has a relatively narrow focus, while finance is wider-ranging, covering an array of specializations in the world of business, economics and banking.

What is the difference between South African GAAP and IFRS?

GAAP is a framework based on legal authority while IFRS is based on a principles-based approach. GAAP is more detailed and prescriptive while IFRS is more high-level and flexible.

Is financial accounting in demand in South Africa?

The accounting profession is in high demand worldwide, and South Africa is no exception. With the country's growing economy and the need for financial expertise in various industries, accounting science offers promising career opportunities and competitive salaries.

What is the most common financial instrument?

Common examples of financial instruments include stocks, exchange-traded funds (ETFs), mutual funds, real estate investment trusts (REITs), bonds, derivatives contracts (such as options, futures, and swaps), checks, certificates of deposit (CDs), bank deposits, and loans.

What are basic financial instruments?

The most common basic financial instruments are cash, trade debtors, trade creditors and most bank loans. For a debt instrument (receivable or payable) to be basic, returns to the holder must be: •a fixed amount; •a positive fixed rate or a positive variable rate; or.

What is the most basic financial instrument?

Sec. 4. Cash and other Financial Assets.

Cash is the most basic financial instrument because it is the medium of exchange and is the basis on which all transactions are measured and recognized in the financial statements.

How are banks funded in South Africa?

Banks fund loans by obtaining funding from several sources, the most important being deposits (from households, businesses, corporates and other banks) and issuances of debt. Bank funding costs are crucial to the transmission of monetary policy.

How good is South Africa's banking system?

Kooyman said South Africa has a very good banking system and bank management with a central bank that is extremely competent in regulating banks and ensuring stability. South African banks are inherently risk-averse due to the environment in which they operate, making them very good custodians of customer deposits.

Are South African banks regulated?

It is an offence to conduct the business of a bank in the Republic without being licensed as a bank. Banking in South Africa is regulated by wide-ranging primary and secondary or subordinate legislation.