Thursday, January 23 2020

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First bank in Việt Nam complete Basel II three pillars

Update: December, 20/2019 - 08:00

 

The bank's CEO Hàn Ngọc Vũ delivers his speech at the ceremony on Thursday in Hà Nội. — Photo courtesy of VIB

HÀ NỘI — Vietnam International Bank (VIB) has become the first bank in Việt Nam to complete the three pillars of Basel II, which are minimum capital, supervisory review and market discipline.

Basel II is the second edition of the Basel Accords, which are recommendations on banking law and regulations issued by the Basel Committee on banking supervision. It aims to enhance competition and transparency in the banking system and make banks more resistant to market changes.

During an announcement ceremony in Hà Nội on Thursday, Trần Đăng Phi from the State Bank of Việt Nam (SBV) said he believed VIB's completion of Basel II pillars marks an important foundation for the bank, supporting safer and more efficient business activities.

VIB has embarked on the Basel II journey since early 2018 and became one of the first banks in Việt Nam to fully comply with Circular 41 and now Circular 13 before the regulator’s deadlines.

At the event, the bank’s CEO Hàn Ngọc Vũ said VIB considers the implementation of all Basel II three pillars as one of the important tasks in the long-term for the bank's risk management.

The bank posted revenue of more than VNĐ5.87 trillion (US$252 million) and pre-tax profit of VNĐ2.33 trillion ($100 million) in the past nine months of 2019.

Total assets amounted to nearly VNĐ176 trillion while the bank’s credit outstanding balance reached VNĐ127 trillion.

Non-performing loans decreased to 1.78 per cent as of September 30 from 2.24 per cent at the beginning of this year. Its equity saw a yearly increase 17 per cent to VNĐ12.5 trillion, of which charter capital topped VNĐ9.24 trillion, up 18 per cent year-on-year. — VNS

 

 

 

 

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