December 18, 2017 23:25

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First Vietnamese bank completes Basel II project

16:18 | 07/12/2017

The Orient Commercial Joint Stock Bank OCB has become the first Vietnamese bank to complete the implementation of a Basel II project equipping it with the infrastructure of a modern and safe bank that meets capital supervisory review and transparency requirements

first vietnamese bank completes basel ii project

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.

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.

OCB said after two years, it finished a project on managing risks according to Basel II standards. It implemented 10 tools to support credit work and risk management while drafting and amending nearly 30 processes or regulations relevant to credit and data work and risk management. It also held communication and training programmes for its employees.

OCB General Director Nguyen Dinh Tung said complying with Basel II standards means the bank has a modern risk management system.

The Development Banking Singapore (DBS) provided OCB with advice to meet requirements of the supervisory review pillar of Basel II – Internal Capital Adequacy Assessment.

Eddie Lim, a representative of DBS, said by completing works to apply Basel II for its whole system, OCB took important steps to become a modern bank integrating with others worldwide.

Source: VNA