Publications
Partners
Smaller banks typically hold higher capital than the minimum regulatory requirements due to the perceived higher risk. When Ubank's capital levels were dwindling, the regulator stepped in to do what regulators should be doing: to prevent the failure of the bank, says Nolwandle Mthombeni.
The banking industry has undergone numerous technological advancements that may create the impression that running a profitable bank has become easier. However, several factors continue to have an impact on a small bank's chances of survival.
These include a weak economy, increased competition, and stricter regulation. And while banks navigate all these challenges, they still require access to funding.
