Making diploma in banking, NBFIs mandatory

The crucial role of banking in the country's economic growth and development cannot be overemphasised. As such, it is essential that the workforce in these institutes is competent, qualified, and equipped with the necessary skills and knowledge to perform their duties effectively.

After the banks, Bangladesh Bank has now made the two-part diploma of the Institute of Bankers, Bangladesh (IBB) compulsory for the promotion of senior officers, and non-banking financial institutions (NBFIs).

In a circular published on February 22, the Department of Financial Institutions and Markets (DFIM) of the central bank said the new decision has been made with an aim to increase the efficiency, skills and productivity of the NBFIs officers. The decision will be effective from 1 January 2024.

Earlier on February 8, the Bangladesh Bank made the two-part diploma of the Institute of Bankers Bangladesh mandatory for the promotion of bankers holding positions of senior officer or above, except for managing director and the immediate juniors, in all scheduled banks.

Experts have been stressing for a long that the banking diploma should be mandatory for promotion in Bangladeshi banks. First and foremost, a banking diploma provides employees with a solid foundation of knowledge and skills that are essential for performing their duties effectively. A diploma programme covers a wide range of topics related to banking operations, financial management, and customer service, among others. This knowledge and skills can help employees to improve their job performance, thus contributing to the overall efficiency and effectiveness of the banking sector in Bangladesh.

Also, a diploma can help to promote a culture of continuous learning and development among employees. The banking sector is constantly evolving, with new technologies and practices emerging on a regular basis. By pursuing a diploma programme, employees can keep themselves updated on the latest trends and developments in the industry, thus ensuring that they are always equipped with the necessary skills and knowledge to perform their duties effectively.

Bangladesh Bank Governor Abdur Rouf Talukder stated that there is no alternative to a banking diploma to enhance the scope of knowledge for bank officials. Moreover, several changes are being made to the diploma curriculum. The changes that will come in the syllabus and examination procedures will be published very soon.

The two-part diploma can help to improve the overall quality of the workforce in the banking sector in Bangladesh. By ensuring that, only those who have completed a diploma programme are promoted to senior positions, banks can be assured that their workforce is both competent and qualified. This can help to build customer trust and confidence in the banking and NBFI sectors, which is essential for their long-term growth and development.

It provides employees with the necessary skills and knowledge to perform their duties effectively, promotes a culture of continuous learning and development, and improves the overall quality of the workforce in the banking sector.

Be that as it may, it is important to ensure that the implementation of this policy does not create barriers to upward mobility for talented individuals who do not have access to higher education. Thus, a gradual implementation of this policy, with financial assistance and support provided to employees who wish to pursue further education, would be the ideal way forward.