Speakers at a regional banking conference have identified some newer challenges for the bankers including ensuring regulatory compliance and corporate governance as the banking system is stepping into a new paradigm.
The human resource management department of banks are already facing difficulties in confronting these challenges, they said, and also stressed for compliance requirements to ensure long term stability and sustainability in the sector.
These views emerged from two sessions at the conference titled “Operational Issues of Banking” and “Human Capital Development in the Banking Industry of the Region” at the Regional Banking Conference 2018, which concluded in Dhaka on Monday.
The two-day conference was organized by the Bangladesh Institute of Bank Management (BIBM) in association with the Financial Institutions Training Institute (FITI) of Bhutan, National Institute of Bank Management (NIBM) of India, and National Banking Institute (NBI) of Nepal, at the BIBM headquarters.
The session “Operational Issues of Banking” was chaired by CEO of Bangladesh International Arbitration Centre and former deputy governor of Bangladesh Bank Muhammad A Rumee Ali.
BIBM Supernumerary Professor Helal Ahmed Chowdhury, President and Managing Director of Bank Asia Ltd Arfan Ali, Additional Managing Director of Trust Bank Ltd Faruq Mainuddin Ahmed, BIBM Director Professor Dr Prashanta Kumar Banerjee, were the discussants.
Muhammad A Rumee Ali said the bankers have to be ready to cope with new technologies, as their jobs will be more and more difficult in the future with the introduction of newer technologies.
For this, the bankers have to be trained well, and they have to acquire additional skills such as data analysis, he said.
“However, ensuring the role of law and maintaining proper corporate governance is the prime need for a sustainable banking industry,” he said.
Talking about financial inclusion, Arfan Ali said that only 30% have bank accounts in Bangladesh only.
“The banks have to adopt more digital technologies with a view to channelling the unbanked people to banking.”
Faruq Mainuddin Ahmed emphasized on the practicing of central bank’s power to ensure good governance in the banking sector.
Dr Prashanta Kumar Banerjee said: “The management of risks of criminal activities and compliance of regulatory requirements are costly, challenging and even cumbersome. The banks are working to cope with these challenges, and they should speed up the process.”
Another session, “Human Capital Development in the Banking Industry of the Region” was chaired by Banking Reforms Advisor to Bangladesh Bank SK Sur Chowdhury, while BIBM Director General Dr Toufic Ahmad Choudhury, Director of NIBM in India Dr KL Dhingra, CEO of NBI in Nepal Sanjib Subba, and Head of HR, Admin and Finance of FITI in Bhutan Penjor Gyeltshen, attended as panellists.
At the session, the discussants said that the human resource departments of the banks are facing challenges in employing and engaging adequate and equipped personnel to ensure required compliance.
They called on the regulatory authorities to introduce new regulations and compliance requirements to address the challenges.
Dr Toufic Ahamad Choudhury said: “To get the best out of human resources in an organization, there must be substantial and meaningful investment on them.”
SK Sur Chowdhury said: “There is no importance of good capital and sophisticated technologies in a bank, if it is managed and operated by under-developed human resources.”
He said many existing bank employees have not only a lack of capacity, but also a scarcity of motivation from the organizational end.