MYK Consultancy

The South African Reserve Bank’s Monetary Policy Committee hiked rates by 375 bps (3.75%) since November 2021.

Tears for South Africans are coming on these days:
30 March 2023
25 May 2023
20 July 2023
21 September 2023
23 November 2023.

Startup-focused lender SVB Financial Group became the largest bank failure since the 2008 financial crisis on Friday, in a sudden collapse that roiled global markets and left billions of dollars belonging to companies and investors stranded.

California banking regulators closed the bank, which did business as Silicon Valley Bank, on Friday and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for later disposition of its assets.

The main office and all branches of Silicon Valley Bank will reopen on March 13 and all insured depositors will have full access to their insured deposits no later than Monday morning, the FDIC said.

But 89% of the bank’s $175 billion in deposits were uninsured as the end of 2022, according to the FDIC, and their fate remains to be determined.

The FDIC is racing to find another bank over the weekend that is willing to merge with Silicon Valley Bank, according to people familiar with the matter who requested anonymity because the details are confidential. While the FDIC hopes to put together such a merger by Monday to safeguard unsecured deposits, no deal is certain, the sources added.

An FDIC spokesperson did not immediately respond to a request for comment.

Separately, SVB Financial, the parent company of Silicon Valley Bank, is working with investment bank Centerview Partners and law firm Sullivan & Cromwell to find buyers for its other assets, which include investment bank SVB Securities, wealth manager Boston Private and equity research firm MoffettNathanson, the sources said. These assets could attract competitors and private equity firms, the sources added.

It’s unclear if any buyer will step up to buy these assets without SVB Financial having filed for bankruptcy first. Credit ratings agency S&P Global Ratings said on Friday it expected SVB Financial to enter bankruptcy because of its liabilities.

Silicon Valley Bank is largest failure since 2008 crisis, billions stranded SVB focused on lending to start-ups; branches to reopen Monday. Crisis exposes banking 'vulnerabilities' amid rising rates.

The Financial Sector Conduct Authority (FSCA) has cancelled the exchange licence of ZAR X, an alternative trading platform in which the Public Investment Corporation (PIC) holds a 24.14% stake.

The financial regulator cancelled ZAR X’s exchange licence “with immediate effect” for prolonged noncompliance with section 8 of the Financial Markets Act (FMA), which governs the liquidity and capital adequacy requirements of an exchange. The FSCA said in a statement on Monday announcing its decision that it concurred with the Prudential Authority (PA) and the SA Reserve Bank before deciding to strip ZAR X of its licence.

The Financial Sector Conduct Authority’s decision means ZAR X has just 14 days to delist all the securities on its platform.

Decision to strip ZAR X of its licence ‘not taken lightly’.

Decision to strip ZAR X of its licence ‘not taken lightly’ The Financial Sector Conduct Authority’s decision means ZAR X has just 14 days to delist all the securities on its platform

BREAKING: The MPC decided to increase the repurchase rate by 75 basis points to 7%, with effect from the 25th of November 2022.

BIG NEWS:

2nd world's largest crypto exchanges, FTX at brink of total collapse.

The company was valued at $32bn... just 2 days ago…today it's worth $2-$5

World’s no.1 crypto exchange, Binance was considering rescuing FTX but has since pulled out of the deal. As a result, according to WSJ - After Binance walked away from the FTX deal, leaked messages to WSJ shows SBF asking for up to $8 billion from investors given inability to fund withdrawals.

The founder & CEO of the exchange has since lost 93% of his net value. Sam Bankman-Fried's net worth falls $14.6 billion in the past 24 hours to $991M.

And as you may imagine, this has taken a knock on the value/price of various cryptocurrencies including Bitcoin. Even worse, the company cannot honour withdrawals as investors are trying to pull their funds or profits out

Could this be another steinhoff situation? 🫣

Thank you!

Looking forward to more engagements 🤝🏾

Our Minister of Finance, Godongwana Enoch gave his mid-term Budget Speech today and here are the outtakes/highlights from his speech.

1. Expect GDP growth to be 1.9% in 2022 (vs 2.1% in Feb 22)

2. Economy is expected to grow at 1.6% on average for the next 3 years.

3. Initiatives to be done to unleash the dynamism of the economy:

- leveraging fixed/ infrastructure investments (Private/ Public Sector)
- decreasing governments debt and debt servicing costs
- proposed no budget reductions implementation in the 2023 budget

4. A portion of higher-than-anticipated revenue proposed to be utilised for:
- reducing the current deficit and over MTEF
- making additions to Infrastructure projects (Education, Health and Policing)
- to address identified fiscal risks (debt service costs, public service wage bill, etc)

5. In-Year spending adjustment = R13bn

6. Expenditure framework- to be focused on restoring service delivery and laying the foundation for higher growth.

7. Other focus areas/ interventions:
- address SOE risks: Transnet, Denel and SANRAL
- Reforming Eskom, debt take-over and improving the reliability of energy/ electricity generation
- Modernising procurement
- Fighting crime and corruption
- Strengthening auditing and preventative controls and accountability mechanisms
- Avoiding the potential Grey-Listing of SA.

Hello,

Excited to have finally launched MYK consultancy, specialising in providing the right solutions for your business’s anything finance related

We help public sector, personal, already existing entrepreneurs and private businesses as well as potential and any form of new businesses (small, medium, large):

✅ build a business case
✅ prepare business proposal for access to funding
✅ preparation of management accounts
✅ preparation of financial statements
✅ financial analysis reporting
✅ quotations and invoicing

& many more…

Consult with us and optimise your financials!!! 📊🧾🗒️

South African regulatory body (FSCA) has taken an important step forward by declaring crypto asset as a regulated "financial product" under the purview of the FAIS Act (Financial Advisory & Intermediary Services).

𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝘁𝗵𝗶𝘀 𝗺𝗲𝗮𝗻 𝗳𝗼𝗿 different crypto companies?

They will be required to apply and obtain a license as a Crypto Asset Service Provider (CASP). Licensing applications open 1 June 2023.

Just launched! 🚀 📣