Reference no: EM132864968

Standard Bank is a leading African banking group focused on emerging markets globally. With assets exceeding R1509 billion, it is the largest banking group in Africa (by market capitalization) and operates in 33 countries worldwide. The group has been a mainstay of South Africa's financial system for over 145 years. In recent years, led by the Corporate & Investment Banking division, Standard Bank's international expansion has taken it from its southern African base into 17 countries across the continent, and 16 countries outside Africa. Standard Bank's Corporate & Investment Banking division serves a wide range of client requirements around the world for banking, finance, trading, investment, risk management and advisory services. Having developed in line with globalizing capital markets and the growing sophistication in financing requirements in emerging markets, the division has built a deep understanding of the market dynamics in countries with rapidly developing economies. The objective at the time was to overhaul the banking book collateral operating environment including the business operating model, processes, methodologies and systems. The Bank considered this a strategic imperative in terms of the need for capital efficiency, accurate credit risk management, operational efficiencies, reducing operational risk and optimized pricing. Banking book collateral was loosely defined as all legal and collateral documentation that did not fall within the stricter parameters of normal trading agreements like ISDA's, ISMA's etc. The CIB business is diversified and spread over a large number of different divisions and geographies without a common system for the recording, housing and valuation all of the banking book collateral documentation being in place. This led to numerous different standards being applied and a lack of consistency. The collateral system in use, in SA, at the time was never designed to be a Collateral Management tool and options to enhance it were limited. Manual workarounds proved difficult and certainly not ideal for Regulatory capital purposes.

• Explain the strategic management process that Standard Bank needs to follow to remain competitive and to gain more market share.
• Discuss driving force that would give Standard Bank a competitive edge in the market
• As a Business Management 512 student, advise the Senior Management of Standard Bank on the future challenges for the bank.