Sacombank starts adoption of Basel III norms

Sacombank began a project to implement Basel III and strengthen risk management capacity with EY Vietnam Consulting JSC offering consultancy. — Photo courtesy of the bank

Sacombank has begun a project to implement Basel III and strengthen risk management capacity with EY Vietnam Consulting Joint Stock Company offering consultancy.

The project is meant to build an organisational structure for risk management in line with international rules and the bank's strategies, improve capital and asset quality to ensure stable and sustainable business operations and meet the increasingly stringent requirements for the banking industry, optimise the process of identifying, measuring, monitoring, controlling, and overcoming risks, and develop skilled human resources and a modern information technology system.

Pham Van Phong, the lender’s vice chairman, said: "Sacombank is well aware of the importance of applying Basel III rules and improving its risk management system.

"This is one of the major factors that enable Sacombank to complete the restructuring project, thereby optimising all business activities while ensuring safety and efficiency in operations.

"With co-operation with a reputed partner, EY Vietnam Consulting Joint Stock Company, we believe Sacombank will make steady progress, building trust and confidence in the market, thereby creating an important premise to realise higher goals, reaching out to the regional and international markets."

Nguyen Thuy Duong, chairwoman of EY Vietnam Consulting JSC, said: "Banks are increasingly facing many risks and challenges in their operations. The implementation of Basel III in particular and determination to improve the capacity of the risk management system reflects Sacombank's long-term strategic vision, which not only aims to ensure financial safety compliance but also leverage risk management in strategic and business decisions to promote sustainable development and meet international standards in the long term.

"We are thrilled to be trusted by Sacombank in this extremely important transformation journey."

With a vision of becoming the leading modern and multi-functional retail bank in Viet Nam, in recent years Sacombank has steadily improved all aspects of its operations, including risk management, business environment and corporate culture.

Its prudent ratios have been well managed and within the safe threshold, its capital adequacy ratio has always been at a good level, liquidity has been always ensured, and credit quality has been improving. — VNS