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HDBank pioneers comprehensive implementation of Basel III
HDBank is one of the first lenders in Việt Nam to have successfully adopted Basel III reforms standards.
Customers at a HDBank branch in HCM City. The bank has fully applied Basel III Reforms standards for risk management. — Photo courtesy of the bank
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It has fully adopted the Basel III Reforms since July under the guidance of EY Vietnam Consulting Joint Stock Company.
They represent a long-running but fundamental overhaul of the global regulatory capital regime, aimed at restoring credibility in the calculation of risk-weighted assets and improving the comparability of banks’ capital ratios.
Accordingly, HDBank has completed a comprehensive upgrade from Basel II to Basel III Reforms across the board, and now complies with the strict requirements that the Basel Committee recommends for international banks from January 1, 2023.
By applying Basel III Reforms standards, HDBank aims to achieve sustainable development goals such as improving its financial capacity by meeting the capital adequacy ratio -- with minimum requirements being higher than under Basel II -- and the Internal Capital Adequacy Assessment Process; increasing its leverage ratio, improving its liquidity via the application of liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) and strengthening its internal control system.
These factors create a solid foundation for HDBank to develop effectively and robustly, especially at a turbulent time for the global economy.
This important milestone also affirms HDBank's continued solid risk management and international standards of operations, and enhances its reputation and competitiveness in the market.
HDBank began applying Basel III in mid-2019, and completed it pillar by pillar with priority given to liquidity risk management and market risk management through the application of LCR and NSFR.
To apply Basel III, HDBank has standardised data, improved the quality of human resources, invested in modern technology infrastructure, upgraded its IT system, enhanced digitisation, and strengthened its mechanisms.
It has also been transparent in disclosure of information.
The comprehensive implementation of the Basel III Reforms makes HDBank one of the pioneers in Việt Nam in applying leading international risk management standards.
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