BANK Negara Malaysia will soon require financial institutions to rigorously screen new hires, saying integrity is critical in boosting confidence in the financial system.

“This is to ensure that the financial industry possesses a competent and professional workforce,” said the central bank when asked on development measures by BNM and the industry to protect the integrity of and confidence in the domestic financial system.

Furthermore, the bank said in an email to Bernama, in providing comprehensive training in banking and development, institutions, like the Asian Institute of Chartered Bankers (AICB), International Centre for Education in Islamic Finance, and Iclif Leadership and Governance Centre, played an important role in strengthening the talent pool.

It said the prestigious Chartered Banker qualification, for example, was aimed at providing comprehensive education on banking to boost bankers’ professionalism, and ensured they made good judgments and decisions.

Beginning January last year, all graduate entrants in the banking industry are required to be a member of AICB, and complete a mandatory programme on ethics and professional standards.

Since last April, the workforce in wholesale financial markets is required to adhere to a high standard of professional entry eligibility, market conduct and internal controls, as stated in the Code of Conduct for Malaysia’s Wholesale Financial Markets.

BNM said the code of conduct was rigorously and jointly enforced by the Financial Market Association of Malaysia, financial institutions and regulators.

BNM Governor Muhammad Ibrahim previously said: “Malaysian financial institutions should be the gold standard for good governance practices.

“Because of their important role within the economic system, banks have the added responsibility of maintaining public trust and confidence.

“BNM expects the banking industry to take the lead in promoting good governance practices more broadly across corporate Malaysia, through financial and investment activities, or professional advice to clients,” he was quoted as saying in 2016 at the 20th Malaysian Banking Summit. – Bernama, February 16, 2018.