The Vietnam National Credit Information Center (CIC) of The State Bank of Vietnam (SBV) and the International Data Group (IDG) co-organized the “Enhancing credit risk management capacity in today’s connected world” Conference on November 24, 2016 in Hanoi.
Deputy Governor Nguyen Kim Anh at the conference
Attending the conference were Dr Nguyen Kim Anh, the SBV Deputy Governor-cum-Chairman of Science and Technology Council of the banking sector; representatives from SBV entities CIC and IDG; managers, officials, and leading specialists in banking and finance; a range of enterprises providing risk management solutions in banking-technology, and credit institutions operating in Vietnam.
Delivering the opening speech, Deputy Governor Nguyen Kim Anh stressed that, in the context of a fluctuating world and the complicated movements of the international financial market, domestic businesses faced a number of challenges. However, under the government’s direction, the SBV has actively proposed a number of effective measures to control inflation, stabilize the macro-economy (thereby supporting economic growth) and ensure the liquidity of credit institutions, with a focus on implementing credit solutions to remove difficulties, assist enterprises in enhancing their production and business operations as well as synchronously implementing the restructuring of the system of credit institutions and resolve problems with NPLs.
As a result, the system of credit institutions are basically stable, the financial management capacity of commercial banks - especially risk management - has been improved through gradual international integration. The legal framework for the standards of credit institutions has significantly improved, matching up with international standards, thereby creating foundations for the safe and sound operation of credit institutions and fostering bank-restructuring in line with the set objectives and orientations. The Vietnamese commercial bank system has gradually implemented and applied the safe capital standards of Basel II in accordance with the roadmap set out by the SBV.
In regard to international practices, regulations on information and risk management, and the system of internal control of credit institutions, needs to be fully completed. Hence, applying common standards and principles on risk management is essential.
In order to minimize any risks in the progress of commercial-banking operations, the SBV has recently strengthened the transparency of credit information, creating equal rights and favorable conditions for customers to get access to bank loans and has formulated new policies supporting the development of financial services.
The themes raised by experts at the conference included, (i) The role of big data in the credit-scoring system; (ii) managing credit-risk compliance with international practices in Vietnamese banks; (iii) operational risk-management for commercial banks in the digital age; (iv) best practice of the bureau scoring system and regulatory guidelines for credit-limit management; (v) the importance of information dimensions in credit scoring beyond the financial information.
Thoa Le