Muhammad bin Ibrahim: Developments in Malaysia’s banking sector Keynote address by Mr Muhammad bin Ibrahim, Deputy Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Official Launch of the Asian Banking School, Kuala Lumpur, 17 August 2015. *  *  *  Thank you for inviting me to deliver my remarks at this official launch of the Asian Banking School (ABS). It is my great pleasure to be a part of this momentous occasion. Today is the culmination of the vision to take professional development and continuous learning in the Malaysian banking sector to new heights. It also marks the beginning of another important and exciting journey in our overall effort to enhance the standards, quality, productivity and competitiveness of the workforce of the financial services industry. It’s an important first step in professionalising the industry. The banking sector in Malaysia has come a long way to grow both in strength and stature, steadily advancing and maturing as it seeks to become more effective and efficient in performing its intermediation function. In the last decade alone, the industry has undergone some fundamental changes following a period of transformation facilitated by the Financial Sector Masterplan (FSMP). Today, our banking system is placed on a solid footing on the back of strong capitalisation, strengthened by improved risk management and governance practices. We are also seeing increased sophistication and a wide spectrum of products and services being offered by diverse players in the marketplace.

With these questions in mind, allow me to now share two strategies in the context of human capital development that, to my mind, are key catalysts toward a new era of development of the banking sector, as well as the broader financial services industry, with a particular focus on our aspiration with regard to the role of ABS towards the attainment of these strategies. First, is the strategic imperative toward professionalising the banking profession to create a banking workforce committed to highest standards of professional conduct, knowledge and competence. Our motivation in pursuing this imperative is many-pronged – firstly, the move to professionalize the industry, to be achieved via the development of professional qualifications and specialised certification track, that can play a vital role in ensuring that the banking workforce consistently achieves high levels of capability through continuing professional development (CPD) and learning. Secondly, by adhering to professional standards, professional conduct and CPD requirements of professional bodies, a higher level of professionalism and behaviour demonstrated by the banking workforce will generate increased public confidence and trustworthiness in the banking sector. Also vitally important, is the objective of creating structured career pathways for banking professionals through qualification and certification, thereby increasing the professional image, stature and attractiveness of the banking sector as a profession. Consequently we should be able to attract the best minds and talents into our mist. The ABS, together with the Asian Institute of Chartered Bankers (AICB), is envisioned to be the catalysts in driving this important agenda of professionalising the industry.