Case Study - China
Situation
China’s banking sector is fully open, and after 2010, large state-owned commercial banks will gradually implement the New Basel Capital Accord. China’s commercial banks have recognized that in order to compete with the world’s multinational banks they must become Basel compliant. This can only be done by increasing their understanding of financial risk management theories and concepts. To be successful they must ensure that employees are familiar with approaches to risk management that are based on international standards.
Solution
After assessing the needs of China it was decided that GARP’s already established International Certificate in Banking Risk and Regulation was a good solution to fulfill China’s education needs. The Certificate is globally recognized and provides a comprehensive overview of risk management and regulation in banking. Through the use of practical examples that reinforce financial risk concepts covered in the new Basel Capital Accord, the teaching material for the Certificate helps all banking personnel master basic theory while allowing them to gain a thorough understanding of financial risk management based on international standards.
Banks in China, as well as elsewhere around the globe, must conduct ongoing systematic training, enabling their employees to master risk management techniques and concepts. This training will allow banks to maintain their competitiveness and avoid possible risks to their reputation and finances, as well as allow the China Banking Regulatory Commission and global investors to have a greater degree of confidence about the long-term stability of the Chinese banking industry.
Banks in China that pursue the International Certificate in Banking Risk and Regulation (ICBRR) will play a positive role in establishing the basic foundation of knowledge necessary to create a culture of risk awareness, throughout the entire bank, from the most junior to the most senior levels.
Result
The Ministry of Labor and Social Services (MOLSS) approved the program in February 2008. Over 30,000 candidates are expected to register for the program in 2008, with larger numbers in 2009 and beyond.
