are critical to the future of the banking system : i. human capital investment ; and ii. forward looking leadership. human capital investment requires a new model : learning that adapts and is continuous the approach towards talent development and career learning is rapidly shifting. traditional learning systems are no longer sufficient. data from a recent study revealed that the “ ability to learn and progress ” is the principal driver of a company ’ s employment brand among millennials today. yet, only one - third of millennials believe employees are using their skills well, and 42 % say they are likely to leave because they are not learning fast enough. we must reinvent and modernise the existing model of human capital investment if we are to recruit, develop and retain 1 / 3 bis central bankers'speeches the very best of talent. prioritising and channelling greater resources to the talent development function are important first steps. currently, the average annual training expenditure for the banking industry is around 3 % of employee payroll, in contrast with international comparisons of around 4 % to 4. 5 %. the malaysian banking industry ’ s allocation for training and development is still below global benchmarks. it is, however, not enough to solely focus on outright spending. equally important is the quality of training investments. in my mind, this begins with transforming existing corporate learning systems to enable continuous lifelong learning and ongoing skill acquisition. the banking sector ought to have an “ on demand, ever ready ” learning system that empowers talent to take ownership of selfdevelopment. this means diversifying from the traditional form of structured learning that only takes place at rigid fixed intervals. aspiring talent ought to be empowered to personalise learning content according to individual preference and pace. indeed, knowledge should be accessible to all who seek learning. learning should take place at any time. learning should be democratised. the rise of innovative digital content providers such as coursera, codecademy and edx has further increased the viability and attractiveness of an “ on demand, ever ready ” learning system. edx, for example, includes over 130 economics and finance courses offered by prestigious providers such as harvard, mit and imf. in short, both the quantity and quality of human capital investment matter. agility is also a key aspect. human capital investment must adapt and evolve with its operating environment. the fintech wave has taught us an important lesson ; opportunity favours the bold and the wellprepared. more so in times of change. experience has

the ratings were due to the support and commitment of the parent company ( ghl ), its historical profitability and its adequate capitalization. you would notice the words “ adequate capitalization ” featuring in both cases. these words add even greater significance to the agreement we celebrate today. if my understanding is correct, the ifc ’ s investment of us $ 75 million involves a conversion of us $ 50 million of subordinated debt into equity, with the balance being an injection of new capital. as a result of the transaction shareholders ’ equity in ghl will be increased by close to $ 400 million. the ifc ’ s decision to partner with ghl through equity participation demonstrates its tremendous confidence in the local financial services industry, despite the challenges the sector currently faces. ghl, in turn, is expected to benefit from ifc ’ s considerable expertise and its association with a strong reputable partner, which has funds available for follow - up investments. from our vantage point, as regulator, this agreement sends precisely the right message to the insurance industry, and that is, the importance of adequate capitalisation. as you may ( or may not know ), with our legislation dating back to 1966, we are one of the few jurisdictions in the world that do not have robust capital requirements for the insurance industry. without doubt, this deficiency contributed greatly to clico ’ s problems. adequate risk - adjusted capital would not only have provided a buffer to absorb losses but moreover, would have acted as a dis - incentive to risk - taking since the greater the risk, the greater would have been the need to allocate scarce resources to capital. i am pleased to say that the bank is well advanced in the development of a new legislative framework for the insurance industry. this new framework will include a robust risk - based capital regime, a standardized actuarial methodology, tighter prudential arrangements, enhanced corporate governance and regulatory and supervisory practices, consistent with international best practices. fortunately some insurance companies, including guardian life and guardian general should be able to adapt easily to the new regulatory structure since they have already patterned their operations in order to meet higher standards. ladies and gentlemen, the central bank is very pleased to demonstrate its strong support for ghl ’ s capital raising initiative. it is an added bonus that ghl ’ s partner in this transaction is a progressive reputable global development institution with deep pockets. this partnership should bring significant benefits to the financial services industry in trinidad and tobago, and the caribbean.