Sacombank adopts credit risk measurement model

August 01, 2018 - 18:28

Sacombank has begun installing a Credit Risk Model, which will help measure the risk of business portfolios for formulating business strategies, managing credit portfolios and portfolio limits, and classifying assets based on risk levels.

Phạm Văn Phong, permanent deputy chairman of Sacombank, speaks about the importance of the Credit Risk Model that is being adopted by the lender. — Photo Courtesy of Sacombank

Viet Nam News

HCM CITY — Sacombank has begun installing a Credit Risk Model, which will help measure the risk of business portfolios for formulating business strategies, managing credit portfolios and portfolio limits, and classifying assets based on risk levels.

It will also help the bank evaluate lending limits based on risk analysis of customer segments and product portfolio, develop new products, assess the level of expected risks and losses to determine the level of retained capital needed to ensure safe operation, and improve and optimise the process of lending.

Through this and a project to complete the risk management database framework launched on July 25, Sacombank is accelerating the process of completing the Standardised Approach and adopting the Internal Rating Based Approach proposed under the Basel II capital adequacy rules for banks.

Phạm Văn Phong, the bank’s permanent deputy chairman, said: “Implementing Basel II not only aims to meet the requirement of the State Bank of Vietnam, but also, more importantly, to perfect the management system of Sacombank.

“So we will focus the maximum resources to accomplish this goal.”

The credit risk model is being installed with consultancy from PricewaterhouseCoopers (PwC) and deployed by CMC Saigon System Integration Co.,Ltd. — VNS

Tags Vietnam Sacombank Vietnam News news credit risk model

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