South African Reserve Bank
Encyclopedia
The South African Reserve Bank 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 USA, Japan
and Java.
Unlike the Bank of England
, which provided the model for establishing the SARB, the SARB is privately owned.
Shareholders are entitled to a 10c South African Rand dividend per annum (the total dividend therefore is 200,000 South African Rand), with the remaining profits being paid to the South African government.
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
of South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
. It was established in 1921 after Parliament
Parliament of South Africa
The Parliament of South Africa is South Africa's legislature and under the country's current Constitution is composed of the National Assembly and the National Council of Provinces....
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
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
had brought. The SARB was only the fourth central bank established outside the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, the others being the USA, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
and Java.
Unlike the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
, which provided the model for establishing the SARB, the SARB is privately owned.
Functions of the South African Reserve Bank
- Formulating and implementing monetary policy;
- Issuing banknotes and coin;
- Supervising the banking system;
- Ensuring the effective functioning of the national payment system (NPS);
- Managing official gold and foreign-exchange reserves;
- Acting as banker to the government;
- Administering the country's remaining exchange controls; and
- Acting as lender of last resort in exceptional circumstances.
Board of Directors
The South African Reserve Bank has a board of directors consisting of a Governor, three Deputy Governors, and and eleven Directors. The Governor, and Deputy governors are appointed for five year terms by the President of the Republic of South Africa in consultation with the Minister of Finance. Four of the directors are also appointed by the President of the Republic of South Africa for terms of three years. The remaining seven directors are appointed by the Shareholders of the Bank, also for a three year term.Ownership
The Reserve Bank is privately owned, with 2,000,000 shares issued shares. The only limitation on shareholding is that no single shareholder may own more than 10,000 shares individually. Currently there are more than 660 shareholders owning shares in the South African Reserve Bank.Shareholders are entitled to a 10c South African Rand dividend per annum (the total dividend therefore is 200,000 South African Rand), with the remaining profits being paid to the South African government.
List of Governors of the South African Reserve Bank.
- William Henry CleggWilliam Henry CleggWilliam Henry Clegg was the first Governor of the South African Reserve Bank from 17 December 1920 until 31 December 1931. His successor was Johannes Postmus.-References:...
- December 1920 - December 1931 - Johannes PostmusJohannes PostmusJohannes Postmus was the second Governor of the South African Reserve Bank. His term of office was from 1 January 1932 until 30 June 1945. He was succeeded by Michiel Hendrik de Kock.-References:*...
- January 1932 - June 1945 - Michiel Hendrik de KockMichiel Hendrik de KockMichiel Hendrik de Kock was the third Governor of the South African Reserve Bank. His term of office was from 1 July 1945 to 30 June 1962. All South African banknotes issued during the reign of Queen Elizabeth II carry his signature. The Union of South Africa became the Republic of South Africa...
- July 1945 - June 1962 - Gerhard RissikGerhard RissikGerard Rissik was the fourth Governor of the South African Reserve Bank. His term of office was from 1 July 1962 to 30 June 1967. He was succeeded by Dr. Theunis Willem de Jongh.-References:...
- July 1962 - June 1967 - Theunis Willem de JonghTheunis Willem de JonghTheunis Willem de Jongh was the fifth Governor of the South African Reserve Bank. His term of office was from 1 July 1967 to 31 December 1980. He was succeeded by Gerhardus Petrus Christiaan de Kock.-References:...
- July 1967 - December 1980 - Gerhardus Petrus Christiaan de KockGerhardus Petrus Christiaan de KockDr. Gerhardus Petrus Christiaan de Kock was the sixth Governor of the South African Reserve Bank. He was the son of Dr. M.H. de Kock, who was the third Governor of the South African Reserve Bank. South Africa's constitutional arrangements were changed during his term in office. The 1st Republic was...
- January 1981 - August 1989 - Christian Lodewyk StalsChristian Lodewyk StalsDr. Christian Lodewyk Stals was the seventh Governor of the South African Reserve Bank, serving from 8 August 1989 to 7 August 1999. He succeeded Dr. G.P.C. de Kock who had died in office. During his term, South Africa's constitutional arrangements were changed again. The Second Republic was...
- August 1989 - August 1999 - Tito MboweniTito MboweniTito Mboweni was the eighth Governor of the South African Reserve Bank. He succeeded Dr. Christian Lodewyk Stals on the 8 August 1999 and was succeeded by Gill Marcus who replaced him as Governor on 9 November 2009. He is currently the Chairman of AngloGold Ashanti.The youngest of three children,...
- August 1999 - November 2009 - Gill MarcusGill MarcusGill Marcus is the ninth Governor of the South African Reserve Bank. She is the first woman to hold the position.-Early Years:Marcus was born in Johannesburg, South Africa. Her grandparents were Jewish immigrants from Lithuania...
- November 2009–present