On October 12, 2022, Nam A Bank announced the completion of the implementation of risk management standards according to Basel III standards under the accompaniment and advice of the leading international consulting firm KPMG. This event continues to affirm the strong, safe, effective, and sustainable business activities of the Bank during its 30-year construction journey.
After nearly 8 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 the regulations. Basel III risk management standards, under the close consultation of KPMG Tax and Consulting Co., Ltd – a leading international independent consultant in the financial sector.
Basel III is a reputable risk management standard that is widely applied internationally and is being targeted by the Vietnamese banking system, through improving the quality of capital and liquidity as required by the standards, helping the bank to be better equipped to withstand liquidity stresses while at the same time creating the foundation for a sustainable banking system that is resilient to events, recovers from events and contributes to preventing prevent 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. full operation. In addition, Basel III also introduces a set of liquidity risk management indicators including: Liquidity reserve ratio – LCR, net stable capital ratio – NSFR_ and leverage ratio – LR to increase resilience. liquidity of banks in the face of stressful scenarios.
High capital requirement standards and emphasis on liquidity risk management as above ensure that the bank has enough liquid assets to meet liquidity needs, maintain a sustainable capital structure, Limits reliance on short-term wholesale financing for all on- and off-balance sheet assets and limits the risk of high leverage. As a result, the bank’s regular funding sources will be more stable, reducing the risk of liquidity position being eroded and adversely affecting banking operations.
This event is one of the proofs that Nam A Bank is a pioneer in risk management, safe operation and sustainable development.
Previously (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, completed the internal assessment of capital adequacy (ICAAP) in accordance with Circular 13/2018/TT-NHNN (pillar II of Basel III) in 2020.
In addition to the implementation and application of Basel III, Nam A Bank also implemented international financial reporting standards (IFRS) to enhance financial transparency and improve efficiency and safety in its future operations. comprehensive international financial standards.
A representative of Nam A Bank knows: “Completing Basel III international risk management standards is one of the great efforts of Nam A Bank’s staff to celebrate the Bank’s 30th anniversary. For Nam A Bank, implementing and complying with management standards in accordance with international practices is the responsibility and honor of the entire banking system when it is always pioneering in the implementation and application of advanced standards to maintain and ensure the safety of the entire banking system. ensure the Bank’s operational efficiency as well as the interests of customers and shareholders”.
Nam A Bank is committed to building safe, efficient and sustainable business activities that always bring trust to customers and contribute to the development of Vietnam’s banking system. Following this activity, Nam A Bank will continue to implement advanced governance standards in line with international practices in order to integrate deeply into the international capital market.
Recognizing Nam A Bank’s continuous efforts in risk management activities, Nam A Bank continuously received the award “Excellent in risk management Bank Vietnam” (in 2021, 2022) by International Business Magazine. Magazine (IBM) voted and a series of prestigious awards from domestic and foreign organizations such as: Best Digital Innovation Bank in Vietnam 2022; Most Beautiful Banking Experience Vietnam 2022; Most Socially Responsible Bank Vietnam 2022 voted by International Business Magazine (IBM).
The Article received on Mail by Nam A Bank
