South Africa’s banks still dwarf those in the rest of Africa, but other countries are slowly gaining on their peer.

With balance sheet clean-ups continuing in Europe and the US, banks in emerging markets have grabbed the opportunity to forge stronger relationships with local commodity producers. 

South Africa’s capital markets have been resilient amid a surge of negative news emanating from the country following the killing of 34 miners in August. But many bankers say the situation could deteriorate quickly if economic growth does not pick up or if labour unrest is not calmed. 

To maintain its phenomenal growth rates, Islamic finance is increasingly looking beyond sukuk and property investment to growth areas such as renewable energy and healthcare. 

South Africa’s banks are among the world’s best regulated, and though a sluggish economy is straining revenue growth, expansion in to the rest of Africa and a rapid increase in unsecured lending are providing some respite.

South Africa’s ruling African National Congress has come under increasing pressure in the wake of police shooting 34 striking miners in August. But finance minister Pravin Gordhan says his party’s record in government is impressive and that it has done much to develop the country since 1994.

In the past three years, South Africa’s economy has struggled. Its growth is slower than that of many other African countries, and the shooting of 34 miners in August exposed a simmering tension that exists within its boundaries. Yet while there is no quick fix, investors remain attracted by the strength of the country's institutions. 

After leading Morgan Stanley’s equities business outside the Americas, John Hyman is working to position Renaissance Capital as a focused player in a number of very different markets across emerging Europe and Africa.

While The Banker's Top 1000 World Banks ranking published every July gives an insightful and unique snapshot of the state of the global banking market, our ranking of those banks featuring just below the ranking gives an excellent indication of the way in which the market is heading, and which countries and regions are on the rise.