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|CEO of VIB Han Ngoc Vu (second from left) receives the approval from the SBV|
This approval followed the central bank (SBV)’s Circular No.41/2016/TT-NHNN on regulating capital adequacy ratio for banks, branches of foreign banks, effective from January 1, 2019.
“Meeting strict Basel II standards, VIB is capable of operating safely in accordance with advanced general rules of developed countries around the world to prevent credit, market and operation risks,” the bank (VIB) said in a statement.
Basel II is the second edition of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on banking supervision.
|Three years ago, SBV selected the first 10 commercial banks to pilot Basel II standards. To date, only VIB and Vietcombank are the two banks among 10 to join the pilot scheme successfully.|
Basel II comprises minimum capital requirements, supervisory review and market discipline. It aims to enhance competition and transparency in the banking system and make banks more resistant to market changes.
Three years ago, SBV selected the first 10 commercial banks to pilot Basel II standards. To date, only VIB and Vietcombank are the two banks among 10 to join the pilot scheme successfully.
“The successful implementation of Basel II helped VIB develop business strategies and better form customer, products, risk management and price policy to optimise capital and risk assets,” said Han Ngoc Vu, the bank’s CEO.
Earlier, in July 2018, VIB became the fifth bank in the local banking system to completely buy all bad debts sold to state-owned Vietnam Asset Management Company (VAMC) to bring its real balance sheet back to “one number” – an important step to implement Basel II.