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{{Short description|Central Bank of South Africa}}
{{EngvarB|date=May 2018}}
{{Use South African English|date = May 2024}}
{{Use dmy dates|date=May 2018}}
{{Use dmy dates|date=May 2018}}
{{Infobox central bank
{{Infobox central bank
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|titlestyle = background:transparent;text-align:left;padding-left:2.5em;font-size:85%;<!--size of [show]/[hide] link-->
|titlestyle = background:transparent;text-align:left;padding-left:2.5em;font-size:85%;<!--size of [show]/[hide] link-->
|liststyle = text-align:center;white-space:nowrap;
|liststyle = text-align:center;white-space:nowrap;
| title={{font|size=80%|{{nobold|''10 other official names:''}}}}
| title={{font|{{nobold|10 other official names}}}}
| {{native name|af|{{small|Suid-Afrikaanse Reserwebank}}|parensize=68%}}
| {{native name|af|{{small|Suid-Afrikaanse Reserwebank}}|parensize=68%}}
| {{native name|nr|{{small|lBulungelo-mali eliKhulu leSewula Afrika}}|parensize=68%}}
| {{native name|nr|{{small|iBulungelo-mali eliKhulu leSewula Afrika}}|parensize=68%}}
| {{native name|xh|{{small|iBhanki enguVimba yoMzantsi Afrika}}|parensize=68%}}
| {{native name|xh|{{small|iBhanki enguVimba yoMzantsi Afrika}}|parensize=68%}}
| {{native name|zu|{{small|iBhange-ngodla laseNingizimu Afrika}}|parensize=68%}}
| {{native name|zu|{{small|iBhange-ngodla laseNingizimu Afrika}}|parensize=68%}}
| {{native name|ss|{{small|liBhangi lesiLulu leNingizimu Afrika}}|parensize=68%}}
| {{native name|ss|{{small|liBhangi lesiLulu leNingizimu Afrika}}|parensize=68%}}
| {{native name|nso|{{small|Banka ya Risefe ya Afrika Borwa}}|parensize=68%}}
| {{native name|nso|{{small|Panka ya Resefe ya Afrika Borwa}}|parensize=68%}}
| {{native name|st|{{small|Banka ya Sesiu ya Afrika Borwa}}|parensize=68%}}
| {{native name|st|{{small|Banka ya Sesiu ya Afrika Borwa}}|parensize=68%}}
| {{native name|tn|{{small|Banka-kgolo ya Aforika Borwa}}|parensize=68%}}
| {{native name|tn|{{small|Banka-kgolo ya Aforika Borwa}}|parensize=68%}}
| {{native name|ts|{{small|Banginkulu ya Afrika-Dzonga}}|parensize=68%}}
| {{native name|ts|{{small|Bangikulu ya Afrika-Dzonga}}|parensize=68%}}
| {{native name|ve|{{small|Bannga ya Vhukati ya Afurika Tshipembe}}|parensize=68%}}
| {{native name|ve|{{small|Bannga ya Vhukati ya Afurika Tshipembe}}|parensize=68%}}
}}
}}
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| caption =
| caption =
| image_size =
| image_size =
| headquarters = [[Pretoria]]
| headquarters = [[Pretoria]], [[Gauteng]]
| coordinates = (−25.745420, 28.19602)
| coordinates =
| established = {{Start date|df=y|1921|06|30}}
| established = {{Start date and age|df=y|1921|06|30}}
| ownership = Privately owned<ref name="ownership">{{Cite web |url=http://www.polity.org.za/article/havoc-for-rand-amid-plans-to-nationalise-reserve-bank-2019-03-08 |title='Havoc' for rand amid plans to nationalise Reserve Bank |website=Polity.org.za |access-date=2019-03-08}}</ref>
| ownership = Privately owned<ref name="dnbinfo">https://d-nb.info/1138787981/34</ref>
| executive_title = Governor
| executive_title = Governor
| executive = [[Lesetja Kganyago]]
| executive = [[Lesetja Kganyago]]
| bank_of = South Africa
| bank_of = [[South Africa]]
| currency = [[South African Rand|R]]
| currency = [[South African rand|Rand]]
| currency_iso = ZAR
| currency_iso = ZAR
| reserves = 38 920 million USD<ref name="dnbinfo"/>
| reserves = 38 920 million USD<ref name="dnbinfo">{{cite web |last1=Weidner |first1=Jan |title=The Organisation and Structure of Central Banks |url=https://d-nb.info/1138787981/34 |website=Katalog der Deutschen Nationalbibliothek|year=2017|format=PDF}}</ref>
| reserve_requirements =
| reserve_requirements =
| borrowing_rate = 6.5%
| borrowing_rate = 3.75%
| interest_rate_target =
| interest_rate_target =
| deposit_rate =
| deposit_rate =
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}}
}}


The '''South African Reserve Bank''' ('''SARB''') is the [[central bank]] of South Africa. It was established in 1921 after [[Parliament of South Africa|Parliament]] passed an act, the "Currency and Bank Act of 10 August 1920", as a direct result of the abnormal monetary and financial conditions which [[World War I]] had brought. The SARB was only the fourth central bank established outside the United Kingdom and Europe, the others being the United States, Japan and [[Java (island)|Java]]. The earliest suggestions for the establishment of the Central Bank in South Africa date back to 1879. A select committee, consisting of ten members of Parliament was established on 31 March 1920 to examine the benefits to the national interest of the establishing of the central bank.<ref name=":0" />
The '''South African Reserve Bank''' ('''SARB''') is the [[central bank]] of South Africa. It was established in 1921 after [[Parliament of South Africa|Parliament]] passed an act, the "Currency and Bank Act of 10 August 1920", as a direct result of the abnormal monetary and financial conditions which [[World War I]] had brought. The SARB was only the fourth central bank established outside the [[United Kingdom]] and [[Europe]], the others being the [[Federal Reserve]], [[Bank of Japan]] and [[Bank of Java]]. The earliest suggestions for the establishment of the Central Bank in South Africa date back to 1879. A select committee, of ten members of Parliament, was established on 31 March 1920 to examine the benefits to the national interest of the establishing of the central bank.<ref name=":0" />


Following on the recommendations of the committee, the South African Reserve Bank opened for business on 30 June 1921, making it the oldest central bank in Africa. The first banknotes were issued to the public by the Bank on 19 April 1922. Set of ZAR notes 2012 to present R 104 000 000 000.00 and Set of ZAR notes 2018 to present 400 000 000 print.
Following on the recommendations of the committee, the South African Reserve Bank opened for business on 30 June 1921, making it the oldest central bank in Africa. The first banknotes were issued to the public by the Bank on 19 April 1922. Set of ZAR notes 2012 to present R 104 000 000 000.00 and Set of ZAR notes 2018 to present 400 000 000 print.


Unlike the [[Bank of England]], which provided the model for establishing the SARB, the SARB is privately owned.<ref name="ownership">{{Cite web |url=http://www.polity.org.za/article/havoc-for-rand-amid-plans-to-nationalise-reserve-bank-2019-03-08 |title='Havoc' for rand amid plans to nationalise Reserve Bank |website=Polity.org.za |access-date=2019-03-08}}</ref>
Unlike the [[Bank of England]], which provided the model for establishing the SARB, the SARB is privately owned.<ref name="ownership"/>


==Functions of the South African Reserve Bank==
==Functions of the South African Reserve Bank==

[[File:2RandNote.jpg|thumb|right|2 rand note issued by the bank]]
* Formulating and implementing [[monetary policy]];
* Formulating and implementing [[monetary policy]];
* Issuing banknotes and coin;
* Issuing banknotes and coin;
* Supervising the banking system;
* Supervising the financial services sector;
* Ensuring the effective functioning of the national payment system (NPS);
* Ensuring the effective functioning of the national payment system (NPS);
* Managing official gold and [[foreign-exchange reserves]];
* Managing official gold and [[foreign-exchange reserves]];
* Acting as banker to the government;But not owned by South African Government.
* Acting as banker to the government – but not owned by South African Government.
* Administering the country's remaining exchange controls; and
* Administering the country's remaining exchange controls; and
* Acting as [[lender of last resort]] in exceptional circumstances.
* Acting as [[lender of last resort]] in exceptional circumstances.
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==Organisational structure==
==Organisational structure==
===Board of directors===
===Board of directors===
[[File:South African Reserve Bank Building in Pretoria.jpg|thumb|263x263px|South African Reserve Bank head offices in Pretoria. The site is planned to be renovated, including the addition of a Reserve Bank museum.<ref>{{Cite journal |date= |title=Head Office Renovation project |url=https://www.resbank.co.za/en/home/about-us/head-office-renovation-project |access-date=9 August 2023 |website=South African Reserve Bank}}</ref>]]
SARB has a board of directors consisting of a Governor Lesetja Kganyago three Deputy Governors, and eleven Directors. The Governor, and Deputy governors are appointed for five-year terms by the [[President of South Africa]] in consultation with the [[Minister of Finance (South Africa)|Minister of Finance]]. Four of the directors are also appointed by the President for terms of three years. The remaining seven directors are appointed by the Shareholders of the Bank, also for a three-year term.<ref>{{Cite web|url=http://www.resbank.co.za/AboutUs/Structure/Pages/BoardOfDirectors.aspx|title=South Africa Reserve Bank – Board of Directors}}</ref>
SARB has a board of directors consisting of a Governor Lesetja Kganyago three Deputy Governors, and eleven Directors. The Governor, and Deputy governors are appointed for five-year terms by the [[President of South Africa]] in consultation with the [[Minister of Finance (South Africa)|Minister of Finance]]. Four of the directors are also appointed by the President for terms of three years. The remaining seven directors are appointed by the Shareholders of the Bank, also for a three-year term.<ref>{{Cite web|url=http://www.resbank.co.za/AboutUs/Structure/Pages/BoardOfDirectors.aspx|title=South Africa Reserve Bank – Board of Directors}}</ref>


===Ownership===
===Ownership===
The Reserve Bank, with 2 million issued shares, is one of eight reserve banks worldwide that have shareholders other than the governments of their respective countries (the others being Belgium, Greece, Italy, Japan, Switzerland, Turkey and the USA).<ref name="ownership" /> The only limitation on shareholding is that no single shareholder may own more than 10,000 shares individually. Currently there are 696 shareholders, as of the shareholders index report of 31 August 2018, owning shares in the South African Reserve Bank.
The Reserve Bank, with 2 million issued shares, is one of eight reserve banks worldwide that have shareholders other than the governments of their respective countries (the others being Belgium, Greece, Italy, Japan, Switzerland, Türkiye and the United States).<ref name="ownership" /> The only limitation on shareholding is that no single shareholder may own more than 10,000 shares individually. Currently there are 696 shareholders, as of the shareholders index report of 31 August 2018, owning shares in the South African Reserve Bank.


Shareholders are entitled a dividend of not more than 10 South African cents per share per annum (the total maximum dividend is therefore 200,000 South African Rand or a maximum of 1,000 South African Rand for any individual shareholder), with the remaining profits being paid to the South African government.<ref name=":0">{{Cite web|url=https://www.resbank.co.za/AboutUs/Shareholding/Pages/Shareholding-Home.aspx|title=Reserve Bank shares - South African Reserve Bank|website=www.resbank.co.za}}</ref>
Shareholders are entitled a dividend of not more than 10 South African cents per share per annum (the total maximum dividend is therefore 200,000 South African Rand or a maximum of 1,000 South African Rand for any individual shareholder), with the remaining profits being paid to the South African government.<ref name=":0">{{Cite web|url=https://www.resbank.co.za/AboutUs/Shareholding/Pages/Shareholding-Home.aspx|title=Reserve Bank shares - South African Reserve Bank|website=www.resbank.co.za}}</ref>
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The South African government has announced that it plans to nationalise the Reserve Bank.<ref name="ownership"/>
The South African government has announced that it plans to nationalise the Reserve Bank.<ref name="ownership"/>


=== Subsidiaries ===
⚫
==List of Governors of the South African Reserve Bank==
On 1 April 2024, an arm of the South African Reserve Bank, the Corporation for Deposit Insurance (CODI), became operational; this is South Africa's [[deposit insurance]] scheme.<ref>{{Cite journal |title=The Corporation for Deposit Insurance is South Africa's Deposit Insurance Scheme. |url=https://www.resbank.co.za/en/home/what-we-do/Deposit-insurance |website=South African Reserve Bank}}</ref><ref>{{Cite web |title=South African Reserve Bank launches Corporation for Deposit Insurance {{!}} South African Government |url=https://www.gov.za/news/media-statements/south-african-reserve-bank-launches-corporation-deposit-insurance-25-apr-2024 |access-date=2024-05-28 |website=www.gov.za}}</ref>
⚫
*[[William Henry Clegg]] – December 1920 – December 1931<ref name="bankgovernors">{{Cite web|url=https://www.resbank.co.za/AboutUs/History/PreviousGovernors/Pages/PreviousGovernors-Home.aspx|title=Previous Governors - South African Reserve Bank|website=www.resbank.co.za}}</ref>

⚫
==List of governors of the South African Reserve Bank==
⚫
*[[William Henry Clegg]] – December 1920 – December 1931<ref name="bankgovernors">{{Cite web|title=Previous Governors - South African Reserve Bank|url=https://www.resbank.co.za/AboutUs/History/PreviousGovernors/Pages/PreviousGovernors-Home.aspx|url-status=live|archive-url=https://web.archive.org/web/20110410221307/https://www.resbank.co.za/AboutUs/History/PreviousGovernors/Pages/PreviousGovernors-Home.aspx|archive-date=10 Apr 2011|access-date=15 Jul 2021|website=www.resbank.co.za}}</ref>
*[[Johannes Postmus]] – January 1932 – June 1945<ref name="bankgovernors" />
*[[Johannes Postmus]] – January 1932 – June 1945<ref name="bankgovernors" />
*[[Michiel Hendrik de Kock]] – July 1945 – June 1962<ref name="bankgovernors" />
*[[Michiel Hendrik de Kock]] – July 1945 – June 1962<ref name="bankgovernors" />
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*[[Tito Mboweni]] – August 1999 – November 2009<ref name="bankgovernors" />
*[[Tito Mboweni]] – August 1999 – November 2009<ref name="bankgovernors" />
*[[Gill Marcus]] – November 2009 – November 2014<ref name="bankgovernors" />
*[[Gill Marcus]] – November 2009 – November 2014<ref name="bankgovernors" />
*[[Lesetja Kganyago]] – November 2014 – present
*[[Lesetja Kganyago]] – November 2014–


==See also==
==See also==
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{{Authority control}}
{{Authority control}}
{{Central banks}}
{{Central banks by country}}
{{Banks of South Africa}}
{{Banks of South Africa}}
{{National Key Points navbox}}
{{National Key Points navbox}}
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[[Category:Banks established in 1921]]
[[Category:Banks established in 1921]]
[[Category:Financial regulatory authorities of South Africa]]
[[Category:Financial regulatory authorities of South Africa]]
[[Category:organisations based in Pretoria]]
[[Category:companies based in the City of Tshwane]]
[[Categories: companies based in the city of Johannesburg]]

Latest revision as of 17:21, 13 August 2024

South African Reserve Bank
10 other official names
  • Suid-Afrikaanse Reserwebank (Afrikaans)
  • iBulungelo-mali eliKhulu leSewula Afrika (Southern Ndebele)
  • iBhanki enguVimba yoMzantsi Afrika (Xhosa)
  • iBhange-ngodla laseNingizimu Afrika (Zulu)
  • liBhangi lesiLulu leNingizimu Afrika (Swazi)
  • Panka ya Resefe ya Afrika Borwa (Northern Sotho)
  • Banka ya Sesiu ya Afrika Borwa (Sotho)
  • Banka-kgolo ya Aforika Borwa (Tswana)
  • Bangikulu ya Afrika-Dzonga (Tsonga)
  • Bannga ya Vhukati ya Afurika Tshipembe (Venda)
HeadquartersPretoria, Gauteng
Established30 June 1921; 103 years ago (1921-06-30)
OwnershipPrivately owned[1]
GovernorLesetja Kganyago
Central bank ofSouth Africa
CurrencyRand
ZAR (ISO 4217)
Reserves38 920 million USD[2]
Bank rate3.75%
Preceded byBank of England
Websiteresbank.co.za

The South African Reserve Bank (SARB) is the central bank of South Africa. It was established in 1921 after Parliament passed an act, the "Currency and Bank Act of 10 August 1920", as a direct result of the abnormal monetary and financial conditions which World War I had brought. The SARB was only the fourth central bank established outside the United Kingdom and Europe, the others being the Federal Reserve, Bank of Japan and Bank of Java. The earliest suggestions for the establishment of the Central Bank in South Africa date back to 1879. A select committee, of ten members of Parliament, was established on 31 March 1920 to examine the benefits to the national interest of the establishing of the central bank.[3]

Following on the recommendations of the committee, the South African Reserve Bank opened for business on 30 June 1921, making it the oldest central bank in Africa. The first banknotes were issued to the public by the Bank on 19 April 1922. Set of ZAR notes 2012 to present R 104 000 000 000.00 and Set of ZAR notes 2018 to present 400 000 000 print.

Unlike the Bank of England, which provided the model for establishing the SARB, the SARB is privately owned.[1]

Functions of the South African Reserve Bank

[edit]
  • Formulating and implementing monetary policy;
  • Issuing banknotes and coin;
  • Supervising the financial services sector;
  • Ensuring the effective functioning of the national payment system (NPS);
  • Managing official gold and foreign-exchange reserves;
  • Acting as banker to the government – but not owned by South African Government.
  • Administering the country's remaining exchange controls; and
  • Acting as lender of last resort in exceptional circumstances.

Organisational structure

[edit]

Board of directors

[edit]
South African Reserve Bank head offices in Pretoria. The site is planned to be renovated, including the addition of a Reserve Bank museum.[4]

SARB has a board of directors consisting of a Governor Lesetja Kganyago three Deputy Governors, and eleven Directors. The Governor, and Deputy governors are appointed for five-year terms by the President of South Africa in consultation with the Minister of Finance. Four of the directors are also appointed by the President for terms of three years. The remaining seven directors are appointed by the Shareholders of the Bank, also for a three-year term.[5]

Ownership

[edit]

The Reserve Bank, with 2 million issued shares, is one of eight reserve banks worldwide that have shareholders other than the governments of their respective countries (the others being Belgium, Greece, Italy, Japan, Switzerland, Türkiye and the United States).[1] The only limitation on shareholding is that no single shareholder may own more than 10,000 shares individually. Currently there are 696 shareholders, as of the shareholders index report of 31 August 2018, owning shares in the South African Reserve Bank.

Shareholders are entitled a dividend of not more than 10 South African cents per share per annum (the total maximum dividend is therefore 200,000 South African Rand or a maximum of 1,000 South African Rand for any individual shareholder), with the remaining profits being paid to the South African government.[3]

The South African government has announced that it plans to nationalise the Reserve Bank.[1]

Subsidiaries

[edit]

On 1 April 2024, an arm of the South African Reserve Bank, the Corporation for Deposit Insurance (CODI), became operational; this is South Africa's deposit insurance scheme.[6][7]

List of governors of the South African Reserve Bank

[edit]

See also

[edit]

References

[edit]
  1. ^ a b c d "'Havoc' for rand amid plans to nationalise Reserve Bank". Polity.org.za. Retrieved 8 March 2019.
  2. ^ Weidner, Jan (2017). "The Organisation and Structure of Central Banks" (PDF). Katalog der Deutschen Nationalbibliothek.
  3. ^ a b "Reserve Bank shares - South African Reserve Bank". www.resbank.co.za.
  4. ^ "Head Office Renovation project". South African Reserve Bank. Retrieved 9 August 2023.
  5. ^ "South Africa Reserve Bank – Board of Directors".
  6. ^ "The Corporation for Deposit Insurance is South Africa's Deposit Insurance Scheme". South African Reserve Bank.
  7. ^ "South African Reserve Bank launches Corporation for Deposit Insurance | South African Government". www.gov.za. Retrieved 28 May 2024.
  8. ^ a b c d e f g h i "Previous Governors - South African Reserve Bank". www.resbank.co.za. Archived from the original on 10 April 2011. Retrieved 15 July 2021.
[edit]

25°44′43″S 28°11′46″E / 25.74528°S 28.19611°E / -25.74528; 28.19611 Categories: companies based in the city of Johannesburg

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