EY Consulting Vietnam delves into notable updates of Basel III compared to Basel II and its impacts on bank operations.

On October 12, Ho Chi Minh City’s commercial lender Nam A Bank announced the completion of risk management standards according to Basel III under the accompaniment and advice of KPMG.

More Vietnamese financial institutions are adopting international practices, particularly Basel III standards, to enhance a solid financial buffer, aid resilience, and prepare for global competition.

Besides Basel II, many banks have also applied Basel III and IFRS 9. These international standards help banks improve risk management compared with peers.

Though there are currently no regulations that require the application of Basel III international banking standards, some banks have pioneered the implementation of the norms and are expected to complete the work soon.

In recent years, the banking system has experienced many strong transformation trends such as digital transformation, process automation, and strong investments in information technology. Alongside with these innovations, banks have also devoted considerable resources to enhancing the risk management foundation towards leading practices. In Vietnam, some pioneering banks have proactively piloted Basel III and Basel IV standards in order to stay competitive and ensure a sustainable growth.