WHAT BANK OFFICERS SHOULD KNOW?
1. Bankers need skill to perform the daily work. Time now ripe to teach them Knowledge. Future banking is knowledge-driven.
2. Inter-linkages in bank functioning needs to be taught. Officers should be able to understand the entire balance sheet management of the Bank in a holistic manner.
3. Inter-linkages in various functioning of banks should be taught. How deposits – credit – investment – capital – risks are inter-connected. A piecemeal approach to banking has gone.
4. Core banking is not merely an IT Tool. It is a Decision Support System. The CBS should be fully exploited. Otherwise, enormous amount spent on it will be a waste.
5. Payment & Settlement is a main area of customers’ complaints. Officers should be fully aware of the logistics of the payment & settlement mechanism.
6. What happens outside banking area is as important as what happens inside. Officers need to update global banking movements and directives coming from Basel agreement and WTO platform.
7 Credit, Forex and Treasury knowledge is very important. Every responsible officer should be taught the basics of international banking
8. Integrated Risk Management will be key driver. A fair idea of this taught to all officers.
9. More thrust should be on Front Office and Mid Office.
10. In the past 80% officers were dealing in deposits. It needs to be balanced. Asset management is equally important.
11. Now bankers talk of new terms like Liquidity stress, CRAR, Value at Rsik (VaR), Duration, Modified Duration, CSR, RAROC, Forex Sterilization, Trade Cycle, Systemic Risks, Maturity mismatches, Rate sensitive Assets/ Liabilities, etc. Time to teach new things and make them think in a larger frame.
Source: Article by Shri Arvind Mannur on Face Book
Waman Gokhle’s Comments:
A three tier course can be drawn for officers in Scale 1 to 3
1stTyre
a. The first tire should be designed to up skill the back end activities of CBS, how data is manipulated.
b. The elementary idea of working of Treasury and ID should be given.
c. The broad concepts abotworking of RMD and ALM
Stage 2
1. In depth working of CBS , how software is designed and details of what results it can give,what are its limiting factors, how far the sys is robust etc.
2. The working of ID & Treasury Deptt. In depth . How the liquidity is managed, then different instruments of hedging.
3. The relationship between Balance Sheet Deptt. /ALM/RMD be given
Stage III
1. Understanding the concepts and calculations of Models VAR, RWA, Capital Adequacy calculations.
2 Integrating functions of BS/Treasury/ID/ALM/RMD and CBS.
Further the same inputs be given to Scale IV to Vlll with visit to these departments and submitting their Dissertation on these.
Waman Gokhale
7350901500
waman.gokhale@gmail.com
Vasundhara Krishnamurthy :
Well said Mr.Mannur. Role of departments such as HRD, (specially training), IT, Treasury and Audit has to transform to become more communicative, sharing and more sensitive to changes within and outside the Bank. Yes. Need for a holistic approach is increasing and need for knowledge and skill at every level is also increasing. Thanks for your periodical inputs.
Vincent Joseph Sandanasamy: No doubt Mannurji that risk management and capital management are the two prime areas that the present day bankers should focus.
Now let us search our souls whether the young generation are taught or whether they are willing to learn.
Everyone is working in silos even the corporate office is not an exception. Lack of coordination among the departments.
Present day employees have to be taught the banking what they do is only feeding in the system.
Harishchandra Salian: What Is being seen in private sector banks is that the emphasis is only on marketing of products etc and not in-depth knowledge.. For the roles involving some skills they draw upon the trained POs from the PSU banks.. But the emphasis on getting business at any cost is being followed by he PSU Banks, as ultimately it is the numbers that speak and it is all a game about market capitalization/valuations… So knowledge takes a back seat. !!