The HCM City Development Joint Stock Commercial Bank has received approval from the State Bank of Viet Nam to adopt Basel II standards from October 1.

It received a communication from the central bank on September 12 to apply Circular 41/2016/TT-NHNN on capital adequacy ratio for banks and foreign bank branches.

The SBV’s decision indicates that HDBank’s risk management capacity has met its stringent standards for the finance and banking sector to ensure safer and more efficient, sustainable and transparent business operations.

Following the approval, HDBank will adopt Basel II standards for capital safety earlier than originally planned in late 2019.

Since 2015 HDBank has actively researched and co-ordinated with prestigious international consulting units to implement Basel II.

Besides, it has always actively participated in the SBV’s programmes, complied with credit risk management measures and focused on operational risk management to ensure transparency and sustainable development.

Basel II is an international benchmark for risk management that the Vietnamese commercial banking system is aiming to gradually adopt to strengthen risk management and improve operational efficiency.

To get approval to adopt it, banks have to meet a number of strict regulations on capital, risk management systems and investment in modern technology to control all risks.

With its orientation towards strong and sustainable growth and effective risk management, HDBank has maintained the best asset quality in the banking sector for many years.

In addition, its return on assets and return on equity, which are profitability indicators, have always been at high levels.

Its bad debt ratio is well under control at only 1 per cent. — VNS

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