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Banking & Finance

OCB recognized as complying with Basel II

Released at: 15:52, 28/12/2018 BUSINESS SPOTLIGHT

OCB recognized as complying with Basel II

Photo: OCB

Bank secures recognition from SBV after a year of implementing Basel II standards.

by Hung Cao

The Orient Commercial Joint Stock Bank (OCB) was officially recognized by the State Bank of Vietnam (SBV) on December 26 as applying Circular No. 41 ahead of schedule after one year of implementing and applying Basel II standards.

In order to complete risk management categories according to international standards in Basel II, OCB has implemented ten large and small tools to actively support credit and risk management, and has also studied, drafted, adjusted, and improved nearly 30 processes/regulations relating to credit, data, and risk management. At the same time, the bank also organized a series of communication and training programs that are synchronous and effective throughout the system.

The proactive and successful implementation of Basel II over the past year and now the recognition from SBV demonstrate compliance with the bank’s regulations and the SBV’s orientations, contributing to building a healthy banking industry in Vietnam, and enhancing competitiveness, especially in asset quality, profitability, capital adequacy ratio, and governance capacity.

According to financial experts, the successful implementation and application of Basel II helps OCB operate safer and healthier while managing capital more effectively, resulting in more positive and sustainable business results. After implementing Basel II with capital indicators, liquidity, and risk management requirements meeting international standards, Vietnamese banks will have the opportunity to reach further. The successful implementation of Basel II shows that OCB has been gradually operating risk management standards following international standards, marking a new turning point in the bank’s development in the future.

Specifically, Basel II not only brings practical values for the bank but also for its customers and shareholders. Application has helped OCB optimize profits by adopting business strategies based on risk, the rational allocation of capital to customers and products, and establishing an investment/credit portfolio with optimal profit margins.

“The SBV’s recognition of the application of Circular No. 41 officially completes the successful implementation of Basel II by OCB, which is considered a remarkable milestone after recent efforts,” said Mr. Nguyen Dinh Tung, CEO of OCB. “At the same time, it creates an important foundation for OCB to maintain a high growth rate, enhance its competitiveness in the local market, and bring added value to customers within the customer-centric strategy the bank is pursuing.”

In addition to successfully completing Basel II and being recognized by the SBV, OCB also achieved many other successes in 2018, such as Moody’s upgrading its rating to B1 in many important categories; being the first Vietnamese bank to successfully apply the Omni Channel platform into its operations; receiving two consecutive awards from International Finance magazine in 2018; and, most recently, on December 23, receiving a Top 100 Vietnam Gold Star 2018 Award.

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