Techcombank becomes 8th bank meeting Basel II standards
Techcombank has officially been given approval from the State Bank of Viet Nam (SBV) to apply Basel II standards, raising the number of Vietnamese banks meeting the global norms ahead of the SBV’s schedule to eight.
According to the SBV’s decision, all of Techcombank’s activities will follow Circular 41/2016-TT/NNNN regulating the application of Basel II standards starting from next month.
One of the most important requirements of Basel II is to ensure Capital Adequacy Ratio (CAR) of at least 8 per cent. By the end of the first quarter of the year, Techcombank’s CAR was 13.8 per cent, while its revenue and pre-tax profit reached the record level of VND4.2 trillion (US$179.6 million) and VND2.6 trillion, respectively. This has been the 14th consecutive quarter the bank achieved high revenue growth.
Techcombank General Director Nguyen Le Quoc Anh said with the approval from the central bank, Techcombank would be given priorities in getting higher credit growth limits this year.
According to current regulations, the SBV sets a credit growth limit for the entire year for each bank to ensure the credit growth target of the banking system.
The bank’s return on equity (ROE) and return on assets (ROA) have been at high levels in the region. This has been a competitive advantage for the bank.