On November 8, 2018 in Hanoi, the State Bank of Vietnam (SBV), in collaboration with the Korean Financial Supervisory Service (FSS) and Shinhan Bank Vietnam, organized a Seminar on “Experience of risk based supervision and implementation of Basel II’s Pillar 2” under the chairmanship of SBV Deputy Governor Doan Thai Son.
Also attending the Seminar were representatives from the SBV departments, several commercial banks, foreign banks and joint-venture banks. On the South Korean side, there were Mr. Cho Jae Hee, Executive Officer & Managing Director of Risk Management of Shinhan Bank of Korea, together with several senior leaders from the FSS in charge of Basel implementation.
In his opening speech, Deputy Governor Doan Thai Son stated that Vietnam’s banking sector has been implementing Basel II for five years with encouraging results. The SBV has conducted many critical tasks, which has created the foundation for the implementation of Basel II as scheduled. He also shared that the SBV has completed the assessment of the gaps between the current situations of the 10 banks selected for the pilot Basel II implementation and the standards of Basel II; conducted the Quantitative Impact Studies (QIS) for these 10 banks; promulgated Circular No.41/2016/TT-NHNN prescribing the capital adequacy ratios in line with Basel II standards; promulgated Circular No.13/2018/TT-NHNN stipulating the internal control systems, which includes the requirement for an Internal Capital Adequacy and Assessment Process (ICAAP) to implement Basel II’s Pillar 2.
The Seminar focused on: (i) Experience in risk based supervision regarding Basel II’s Pillar 2; (ii) Experience in risk management: analyze functions among customer relations, appraisal and credit approval in the operation of credit extension; (iii) Experience from the implementation of Basel II’s Pillar 2.
At the Seminar, officials from the SBV Banking Supervision Agency and the commercial banks discussed and shared their views with the FSS about the issues of mutual interests with a view to drawing lessons and experience from the implementation of Basel II.
LH