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South Africa’s banking system is not only the most sophisticated in Africa (which isn’t necessarily saying much) but also the equal of that in many western countries.There has been a reduction rather than increase in the number of banks operating in South Africa recently; since 2002, some banks have been taken over, some have given up their banking licence, and others have left the market, including the African Merchant Bank, BoE Bank, Brait Merchant Bank, ING Bank NV and PSG Investment Bank. Surviving banks have had to make fairly drastic staff cuts to contain operating expenses. Nevertheless, according to a 2004 Ernst & Young report, there’s a strong demand for banking services, particularly bank loans and mortgages.

According to the central banking authority, the South Africa Reserve Bank (www.reservebank.co.za), South Africa currently has 15 locally-controlled banks, six foreign-controlled banks (which, however, operate in much the same way as South African banks), two registered mutual banks and around 50 registered foreign bank branches and representative offices. The retail market is dominated by the ‘big four’: Absa (www.absa.co.za), FirstRand Bank (www.firstrand.co.za), Nedcor (www.nedcor.co.za), and Standard Bank (www.standardbank.co.za), who between them have over 15 million customers (including almost 1 million internet customers) and 25 million accounts. As in other countries, internet banking is projected to increase rapidly, although South African customers have so far been wary of banking online, following newspaper stories of hackers stealing large amounts of money.

Despite their sophistication, South African banks are widely accused of the same ills as banks in Australasia, Europe and North America, including high charges, poor levels of customer service, over-regulation (particularly foreign-controlled banks) and generally cartel-like behaviour. As anywhere, you should therefore shop around and compare rates before signing any contracts or taking out a loan (banks must publish their conditions).

Bank opening hours vary but are generally from 9am until 3.30pm, Mondays to Fridays, and 9am until 11am on Saturdays.

ComplaintsIf you have an unresolved dispute with your bank or a complaint about a banking service or product, you can approach the Banking Adjudicator (Tel. 011-838 0035, www.oba.org.za), an independent body which provides a free, informal, confidential problem-solving service. You can only refer to the Adjudicator after having first approached the bank and the Adjudicator will want your complaint reference number and copies of all correspondence between you and the bank.

If you have a problem concerning a loan, you can approach the Micro Finance Regulatory Council (Tel. 0860-100 406, www.mfrc.co.za), a private, non-profit body appointed by the government to regulate the micro-lending industry and protect the interests of customers.

You can check your credit rating (for a small fee) or seek advice about credit problems from either of South Africa’s two major credit bureaux: Experian (Tel. 089-110 5665, www.experian.co.za) and ITC (Tel. Cape Town, 021-401 4200, Durban 031-366 8222, Johannesburg 011-488 2911, www.itc.co.za). If they’re unable to solve your credit problem, you next stop is the Credit Information Ombud (Tel. 0861-662 837, www.creditombud.org.za), a voluntary, independent association reporting to an industry council.

No doubt you would like to try to estimate how far your euros will stretch and how much money (if any) you will have left after paying your bills.Inflation in Italy in 2003 was around 2.4 per cent and the country has enjoyed a relatively stable and strong economy in recent years. Salaries are generally reasonable and Italy has a high standard of living, although the combined burden of social security, income tax and indirect taxes make Italian taxes among the highest in the European Union (EU).

Anyone planning to live in Italy, particularly retirees, should take care not to underestimate the cost of living, which has increased considerably in the last decade. Italy is a relatively expensive country by American standards, and it’s one of the most expensive countries in the EU, although there’s a huge disparity between the cost and standard of living in the prosperous north and central regions of Italy, and the relatively poor south.

Luxury and quality products are expensive, as are cars, but wine and spirits are inexpensive. Food costs almost twice as much in Italy as it does in the US, but is similar overall to most other western European countries, although you may need to modify your diet. However, you should be wary of cost of living comparisons with other countries, which are often wildly inaccurate and usually include irrelevant items which distort the results.

It’s difficult to calculate an average cost of living in Italy, as it depends on your circumstances and lifestyle. It’s possible to live frugally in Italy if you’re willing to forego luxuries and live off the land. Shopping for selected ‘luxury’ items (such as stereo equipment, electrical and electronic goods, computers, and photographic equipment) abroad can also yield significant savings.

A list of the approximate minimum monthly major expenses for an average single person, couple and family with two children is shown in the table below. If you work in Italy, you must also take into account social security contributions and income tax. The numbers in brackets refer to the notes following the table.

NOTES

1. Rent or mortgage payments for a modern or modernised apartment or house in an average suburb, excluding major cities and other high-cost areas. The properties envisaged are a studio or one-bedroom apartment for a single person, a two-bedroom property for a couple and a three-bedroom property for a couple with two children.
2. Doesn’t include luxuries or liquid food (alcohol).
3. Includes electricity, gas, water, telephone, pay (satellite) TV and heating costs.
4. Includes all entertainment, restaurant meals, sports and holiday expenses, plus newspapers and magazines.
5. Includes running costs for an average family car, plus third party insurance, annual taxes, petrol, servicing and repairs, but excludes depreciation or credit purchase costs.
6. Includes ‘voluntary’ insurance such as private health insurance, household, third party liability, travel, car breakdown and life insurance.

There are three kinds of bank in Italy: ordinary commercial or credit banks, co-operative banks (banchi popolari cooperative) and co-operative credit banks (banche di credito cooperativo).

As in other countries, co-operative banks were established to provide loans (particularly home loans) to their customers. Co-operative credit banks are rural and artisan savings banks funded and owned by farmers and craftsmen. They comprise the largest number of banks (over 500) in Italy, but because their average size is very small they account for just a tiny percentage of total deposits. The Banca d’Italia is owned by the public sector banks and is the only bank permitted to issues notes in Italy.

There are some 900 banks (banche), around 200 of which are large (grandi), including around 50 branches of foreign banks (mostly in Rome and Milan). The remaining 700 or so are primarily local banks with few branches. The number of banks in Italy is continually decreasing as banks merge or are taken over.

The Banca Nazionale del Lavoro, Cassa di Risparmio, Banca Commerciale Italiana, Banca di Roma, Banco di Napoli and Banco di Sicilia all have nationwide branch networks. The top ten banks hold some 35 per cent of total bank assets. Creditwest, a joint venture between Credito Italiano and the British National Westminster Bank, has around 30 branches in Rome, Milan and Naples. The post office serves as a savings bank for many Italians and foreign residents, although non-residents aren’t permitted to open a post office account.
Opening hours

Bank opening hours vary according to the bank and town, and are generally from 8 or 8.30am until 1 or 1.30pm and for one to one and a half hours in the afternoon, e.g. from 2.30 or 3pm until 4 or 4.30pm, Mondays to Fridays. Some branches in major cities also open from 9am to noon on Saturdays. On the day before a public holiday, banks usually open only in the morning. Offices at major airports and railway stations have longer opening hours for changing money and cashing travellers’ cheques, and there are also exchange bureaux in major cities and resorts with extended opening hours.
Charges

Italian banks have traditionally levied some of the highest charges in the world, although they’ve been reduced in recent years. The interest rates charged by many Italian banks are still exorbitant, particularly for business and consumer loans. The interest rates levied on credit cards are also excessive. However, lenders are now required to publish the highest rates they charge and the market average, so that borrowers can make comparisons. Shop around and compare rates before signing any contracts or taking out a loan (banks must also publish their conditions).

Italy has traditionally had one of the least efficient and most ponderous banking services in Europe, where even the simplest operation was inordinately complicated and time-consuming. However, banking has become highly automated in recent years, although Italian banks still lag behind those in many other European countries in terms of efficiency, customer service, and the range and quality of services provided.

On the other hand, Italians banks are quite safe and most deposits are covered by a Bank Deposit Insurance Fund (Fondo Interbancario di Tutela dei Depositi). Branches of EU banks operating in Italy can join an Italian deposit guarantee plan and increase the amount of financial protection they offer clients above and beyond the protection provided by their home country’s guarantee plan. If a bank from a non-EU country is licensed to operate in Italy, the Italian branch must be part of the Italian deposit guarantee plan unless they’re members of an equivalent foreign plan. The maximum amount reimbursed to each depositor is limited to the very precise figure of €103,291.38.