Bank Negara Malaysia (BNM) will soon require financial institutions to undertake rigorous screening for their new hires as integrity is critical in enhancing 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 further development measures by BNM and the financial industry to protect the integrity and confidence in the domestic financial system.

Furthermore, in providing comprehensive training and development on banking, institutions like the Asian Institute of Chartered Bankers (AICB), International Centre for Education in Islamic Finance (INCEIF) and Iclif Leadership and Governance Centre will assume an important role in strengthening the talent pool, it told Bernama via an email.

The prestigious Chartered Banker qualification, for example, is aimed at providing comprehensive education on banking to raise the professionalism of bankers in supporting sound judgment and decision making in the industry, it said.

Beginning Jan 2017, all new graduate entrants into the banking industry are required to be a member of AICB and complete a mandatory programme on ethics and professional standards.

Since April 2017, the financial industry workforce operating in wholesale financial markets are also required to adhere to a high standard of professional entry eligibility, market conduct and internal controls ascribed in the Code of Conduct for Malaysia’s Wholesale Financial Markets.

The Code of Conduct is rigorously and jointly enforced by the Financial Market Association of Malaysia, financial institutions and regulators, it added.

BNM has been harping on upholding integrity in the financial system, time and again, and has been undertaking various efforts in this direction.

Governor Muhammad Ibrahim once 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 expect the banking industry to take the lead in promoting good governance practices more broadly across corporate Malaysia, through financing and investment activities or professional advice to clients,” he was quoted as saying in 2016 at the 20th Malaysian Banking Summit.

- Bernama