Nam A Bank completes risk management following Basel III standards
Nam A Bank completes risk management following Basel III standards
On October 12, Ho Chi Minh City’s commercial lender Nam A Bank announced the completion of risk management standards according to Basel III under the accompaniment and advice of KPMG.
After nearly eight months of implementation, Nam A Bank officially completed and put into operation the methodologies, calculation tools, and operating procedures for the capital components and liquidity management indicators according to regulated Basel III risk management standards.
Basel III is a reputable risk management standard widely applied internationally and is increasingly being targeted by Vietnam’s banking system through improving the quality of capital and liquidity as required by the standards.
It helps the bank to be better equipped to withstand liquidity stresses, while simultaneously creating the foundation for a sustainable banking system that is resilient to events and contributes to preventing possible system losses.
Basel III helps the bank to be better equipped to withstand liquidity stresses, while simultaneously creating the foundation for a sustainable banking system that is resilient to events and contributes to preventing possible system losses.
Accordingly, for capital components, Basel III standards require banks to simultaneously meet both capital adequacy ratio and core capital components and reserve buffer components to ensure safe capital provision.
Basel III also introduces a set of liquidity risk management indicators including liquidity reserve ratio, net stable capital ratio, and leverage ratio to increase resilience of banks in the face of stressful scenarios.
Leveraging high capital requirement standards and emphasis on liquidity risk management, the bank has sufficient assets to meet liquidity needs, maintain a sustainable capital structure, and limit high leverage risk.
At the end of 2019, Nam A Bank was approved by the State Bank of Vietnam for early application according to Basel II standards (pillars I and III) according to the provisions of Circular 41/2016/TT- SBV.
Nam A Bank is committed to building a safe, effective, and sustainable business
In addition to the application of Basel III, Nam A Bank also implemented international financial reporting standards to enhance financial transparency and improve efficiency and safety in its future operations.
A Nam A Bank representative noted, “Completing Basel III international risk management standards is one of the great efforts of Nam A Bank to celebrate the bank’s 30th anniversary.”
He added, “For Nam A Bank, complying with international practices is the responsibility and honour of the entire banking system when it is always pioneering in the implementation and application of advanced standards to maintain the safety of entire banking system to ensure banks’ operational efficiency as well as the interests of customers and shareholders.”
The bank will continue to implement advanced governance standards in line with international practices to integrate deeply into international capital market.
