Three more banks are graduates & # 39; Basel II


MBBank, VPBank and TPBank are the three most recent names recognized by the State Bank of Basel II for a successful application.

The Bank of the State has just announced the decision to apply the Basel II rules to three banks, including the Military Bank (MB), Vietnam Prosperity Bank (VPBank) and Tien Phong Bank (TPBank).

These three banks are responsible for completing the content, ensuring compliance with the provisions of Circular 41/2016 as of May 1, 2019.

Prior to VPBank, TPBank and MB, three other banks were successfully recognized by Basel as VIB, VIB and OCB.

According to Basel II standards, the capital adequacy ratio (CAR) needs to reach a minimum of 8% – 1% reduction in arithmetic compared to Basel I. However, the calculation is more complicated. The MB Securities Company report assessed that if applied in accordance with the Basel II calculation method, the banks' CAR of Basel I standards can be reduced by 1-3%.

In Vietnam, the implementation roadmap for Basel II is defined by the Bank of the State of Vietnam with 2 phases. Phase 1 is tested on 10 banks from February 2016, including: Vietcombank, VietinBank, BIDV, MB, Sacombank, Techcombank, ACB, VPBank, VIB and Maritime Bank. Phase 2 is basically commercial banks with a level of equity in accordance with Basel II standards, of which at least 12-15 banks successfully apply this standard.

Initially, the deadline for the pilot phase was set from February 2016 to the end of 2018 and the second phase to 2020. However, due to the pressure of capital increase faced many difficulties, the deadline The application of Basel II to the pilot banking group has been postponed to 2020.

By meeting Basel II standards, newly recognized banks will have a more "open" credit mechanism. Credit growth is now seen as a bottleneck in growth and profitability for many units today. At a press conference in early 2019, Deputy Governor Nguyen Thi Hong said that it could allow banks' credit growth to take Basel II higher than other lending institutions.

Minh Son


Source link