HDBank Meets Basel II Int’l Standard Ahead of Schedule

1:59:05 PM | 25/9/2019

Ho Chi Minh City Development Joint Stock Commercial Bank (stock ticker: HDB) recently received a decision from the Governor of the State Bank of Vietnam (SBV) on application of Circular 41/2016/TT-NHNN on capital adequacy ratio (CAR) at banks and foreign bank branches (Basel II standard method) from October 1, 2019.

On September 12, 2019, HDBank was officially certified by the SBV Governor to apply the Basel II standard from October 1, 2019. The lender met high standards and principles of risk management set by the SBV to ensure safer, more efficient, sustainable and more transparent business operations. With this decision, HDBank officially applied Basel II standards for capital adequacy ratio sooner than its expected deadline in late 2019.

Reportedly, since 2015, HDBank actively researched and coordinated with prestigious international consultants in Basel II deployment. At the same time, the lender always actively participated in the SBV’s programs, complied with credit risk management measures and focused on operational risk management for the system to ensure sustainable, transparent development.

The Basel II Treaty is an international benchmark for risk management that the Vietnamese commercial banking system is aiming for gradual application to strengthen risk management capacity and improve operational efficiency. To be approved for application by the SBV, commercial banks must meet a variety of very strict regulations on capital, risk management systems and requirements on investment in modern technology systems to control all operational risks well.

With its approach to robust and sustainable growth, effective risk management, HDBank is always among the best managers of assets in the banking industry. ROA and ROE, which illustrate profitability, stands at an all-time high. Its separate bad debt ratio is controlled at only 1%.

L.P