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Banking & Finance

Basel II workshop held

Released at: 14:19, 10/03/2015

Basel II workshop held

SBV and SCB hold workshop in Hanoi for key stakeholders.

by Hung Nguyen

The State Bank of Vietnam (SBV) and Standard Chartered Bank (SCB) held a workshop on the application of the Basel II standards on banking laws and regulations, in Hanoi on March 9, attended by leaders of SBV departments, policy makers, and representatives of commercial banks in Vietnam.

The purpose of the workshop was to discuss and share experiences on implementing Basel II and the practical experience of SCB in the process.

The workshop focused on three major pillars: experiences in establishing, organizing and operating Basel II by the Management Board of the Basel II - PMO project; experiences in gathering, enriching and analyzing data to narrow the data gap; and qualitative and quantitative assessments and internal audits to control major risks for banks.

Pillar 1 relates to the minimum capital requirements each bank must maintain to address credit risk, market risk and operational risk; Pillar II relates to the reviews and evaluations of inspection departments and supervision to ensure a bank's capital is at sufficient levels to manage overall; and Pillar III relates to market discipline and the minimum level of information disclosure to the public.

Mr. Le Trung Kien, Deputy Director of the Department of Banking Operation Safety Policy at the Banking Inspection and Supervision Agency said that the implementation of Basel II is one of the most important features of Vietnam's bank restructuring process and has been approved by the government, with the SBV Governor directing implementation, which still faces challenges in personnel and financial capacity.

On February 24, in Frankfurt, Germany, Vietcombank joined a roundtable organized by the Basel Committee on bank supervision to hear from representatives of global banks on the revised draft of Basel Task Force on Standardized Approaches.

Vietcombank was the only representative from Vietnam, as a member of the Asian Bankers Association (ABA). Through the ABA it contributed to the draft to reflect the actual conditions in Vietnam.

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