Within the framework of the “Vietnam: Strengthening Banking Sector Soundness and Development” Project financed by the Swiss State Secretariat for Economic Affairs (SECO) and administered by the World Bank (WB), on July 13, 2023, the Banking Supervision Agency (BSA) under the State Bank of Vietnam (SBV), in coordination with the SBV International Cooperation Department and the World Bank (WB) specialists, organized a Workshop on Credit risk measurement using the Probability Of Default (PD) Model.
The Workshop was aimed to assist the implementation of the banking supervision functions of the BSA, especially in the area of supervision over the credit risks related to the credit granting to the big economic groups, or the groups of customers with complex ecosystem. These are among the critical risks that should be recognized at an early stage in order to issue early warnings and take interventions to prevent issues that may spread more widely and impact seriously the entire banking system.
Representative from the Banking Supervision Agency speaks at the Workshop
Moreover, through the attendance and discussions at the Workshop, the specialists and representatives from the relevant entities also shared about the practices for the formulation and the use of the credit risk measurement using the PD model conducted by the banking supervision agencies/central banks in the world, thereby opening a new viewpoint for the BSA staff about the methodologies that may be selected for the development of an appropriate model, as well as the relevant requirements, the conditions for data, technologies, human resources, etc. related to each method.
Le Hang