The Council of Higher Education approves BASBF integration within the LU ecosystem

28.12.2022.

University reform is not a formula-based task, because every university has a different situation. We have looked at the research carried out by the BA School of Business and Finance, and we have to agree with the argument that integration in the ecosystem of the University of Latvia, while keeping its autonomy, can contribute to the development of the quality of education, informs Andris Teikmanis, Chairman of The Council of Higher Education.

On  December 22nd, the Council of Higher Education (CHE) evaluated the plan to integrate BA School of Business and Finance (BASBF) into the ecosystem of the University of Latvia (LU). At the meeting, the CHE members listened to the opinions of the representatives of BASBF and LU and decided in favor of the integration of the two universities, preserving the autonomy of BASBF within the LU ecosystem.

Minister of Education and Science Anda Caksa says: “The development of the higher education and science sectors is directly dependent on our ability to rapidly address the challenges and growing needs of these sectors. The sectors are global because we are part of the European and global higher education and science space, where competition for talent and resources is only growing. This requires proactive action, and we appreciate that the University of Latvia and the BA School of Business and Finance have been proactive and have found a successful integration solution. This is a fundamental step to ensure excellence in higher education and science. The chosen solution of integrating the BA School of Business and Finance into the ecosystem of the University of Latvia is in line with the national priorities and within the main national policy objectives of rational use of higher education and research resources.”

The Rector of the BA School of Business and Finance Liga Peiseniece emphasized that the BASBF would like to implement the integration process into the ecosystem of the University of Latvia by the principles of good governance and to ensure the conditions in which the CHE and the Cabinet of Ministers make a reasonable decision, reducing the risks of legal proceedings and the number of financial obligations, and the whole process would take place in a way that is beneficial for the Latvian economy and education – rationally and systemically.

She also adds that the new ecosystem is a highly efficient way to collect resources, increase accessibility and reduce administrative costs, but that the BA School of Business and Finance needs to maintain its autonomy to leave financial education as a student choice and continue to offer internationally recognized diplomas that already ensure high competitiveness of students in the labor market.

This is important because the demand currently exceeds offer, employers need more students than higher education institutions can provide. Employers need trained professionals who can enter the labor market faster.

Previously, the BASBF Senate and the BASBF Constitutional Assembly almost fully approved the decision to join the LU ecosystem with 93% of votes. The plan was carefully considered and agreed upon with both students and academic staff.

According to an assessment by KPMG LAW, the best type of merger is one that leaves all the existing advantages in BA School of Business and Finance, such as flexibility in the design of study programs and graduates who will receive an internationally recognized diploma in an internationally regulated industry. The autonomy of the BASBF will allow quick decisions on the creation of new programs needed by the financial sector.

It is foreseen that the integration of LU and BASBF will preserve both the BASBF brand and the autonomy of the university. BASBF will have the right to choose its academic staff, and maintain its competitive study programs and its cooperation agreements with other universities providing internationally recognized diplomas. The BASBF will develop its research activities in finance, sustainability, cyber security and other areas.

“Merging two universities is not easy, so it is important to preserve what is important in financial education in the context of university reform,” explains Peiseniece.

The BA School of Business and Finance is an importnant higher education institution for finance professionals, which is most evident in the high employment rate of its graduates – 92% of its graduates are employed and receive the second highest salaries among Latvian university graduates.

The University of Latvia will also benefit from the integration of the BA School of Business and Finance in the LU ecosystem, as the BASBF has proved to be a successful brand for 30 years, attracting both students and lecturers. The BASBF’s modern curriculum is developed in partnership with employers, for which 95% of students pay full tuition fees.

“We have agreed on a very forward-looking goal – we have many common interests and our cooperation will allow us to create a strong business school with a specialization in banking and finance in the Baltic region. Business in cooperation with other faculties will bring scientific achievements, prosperity, and economic development,” said Professor Indrikis Muiznieks, Rector of the University of Latvia, at the signing process.

The BA School of Business and Finance is already a major center of financial and business expertise with an ambition to expand its activities across the Baltic region.

“The aim of university reform is to strengthen science and improve the quality of higher education. The merger of a science university with a strong niche university helps to achieve both goals,” says BASBF rector Liga Peiseniece.


About the BA School of Business and Finance

The BA School of Business and Finance is a state-founded, internationally recognised higher education institution, which has been one of the most recognizable Latvian business schools for 30 years. It is currently implementing 12 accredited professional higher education study programs in the fields of business management and financial education at all cycles in Latvian and English.

More than 12 000 graduates from the BASBF have entered the labour market for the Latvia’s economy, many of whom are managers of companies and experts in industries that are widely recognised in Latvia and Europe.