New University of Pretoria (UP) master’s degree graduate Seipati Lepele’s research could help build greater stability in South Africa’s banking system.

Lepele, who’s also an Assistant Lecturer in UP’s Faculty of Law, received her LLM in Mercantile Law (majoring in Banking Law) from UP on 3 September 2024. She is one of the 2 000 graduates who will be conferred their qualifications during UP’s Spring Graduation ceremonies taking place from 2 to 6 September.

“My research focuses on South Africa's recently established explicit deposit insurance scheme (EDIS),” Lepele says. “It evaluates how well the scheme aligns with international standards, specifically the Core Principles set by the International Association of Deposit Insurers (IADI).”

Her thesis, titled ‘The Deposit Insurance Scheme under the Financial Sector Regulation Act 9 of 2017’, assesses whether the scheme meets global best practices and identifies any potential shortcomings in its design and implementation. The study focuses on key areas such as financial stability and bank failures, among others.

Lepele, whose research was done under the supervision of Dr Ashley Nyaude, Lecturer in the Department of Mercantile Law, found that South Africa’s EDIS aligns well with the IADI Core Principles. “However, there are some shortcomings that need to be addressed,” she says. According to her study, South Africa’s EDIS meets all the Core Principles, except for Core Principle 5 (Cross-Border Issues), Core Principle 6 (Deposit Insurer’s Role in Contingency Planning and Crisis Management) and Core Principle 12 (Dealing with Parties at Fault in a Bank Failure).

Additionally, the study suggests that South Africa could benefit from insights gained from both the United States and Kenya. The US, as a pioneer in deposit insurance, offers valuable lessons in continuously updating EDIS legislation and judiciously applying systemic risk exceptions when necessary. Kenya, as the first in Africa to implement an EDIS, provides practical examples and strategies tailored to the regional context.

Lepele hails from Sebokeng in southern Gauteng. She finished her BA Law degree at North-West University before completing her LLB degree at UP and then taking on UP’s LLM Mercantile Law programme.

“To me, this degree represents more than just a formal qualification,” Lepele says. “It symbolises dedication, growth and the pursuit of knowledge. It's a tangible manifestation of the hard work and perseverance I've put into learning and mastering a subject.”

In terms of her career, she believes that a degree can open doors and creates opportunities.

Her message to younger law students would be that “your degree can serve as a foundation for specialised skills and knowledge that are crucial in the law field. It also reflects a commitment to continuous learning and adaptability – traits that are highly valued in today’s ever-evolving professional landscape”.

She says opportunities for her career are endless with her new degree. “A master’s degree in banking law can open doors to a career in the regulatory sector. In this sector, I can work for government agencies, regulatory bodies or private organisations that focus on compliance, policy development and enforcement. This could involve roles such as regulatory affairs specialist, compliance officer, policy analyst or regulatory consultant.”

“Moreover, earning a degree can boost confidence and credibility, enabling me to take on new challenges and responsibilities.”

Lepele plans to enrol for an LLD (doctorate degree in law) and eventually pursue a career as an attorney.