STUART THEOBALD: SA may one day have a ‘big five’ in banking
Capitec for now seems to be the only one with prospects of joining the big four
It is astounding how many countries settle on a banking system of four top banks. The UK, Kenya, Australia, the US, India and Spain are among the many examples. Indeed, it is hard to think of exceptions — Switzerland is down to a big two after UBS’s takeover of Credit Suisse. Japan has a big three. France has a big six. But these are a far less common pattern.
SA might have become a “big three” country had then-finance minister Trevor Manuel allowed Nedbank’s takeover attempt of larger rival Standard Bank in 2000. His decision locked SA into the “big four” model we now have. Why is it that the world over, four seems a stable equilibrium in banking?..
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