Photo shows banking-financial experts during the discussion panel of the seminar yesterday. — Photo HPT Vietnam Corporation

Information technology firm HPT Vietnam Corporation hopes to provide technological expertise and software solutions for local banks to manage credit risks and comply with required financial regulations.

During a seminar held on November 17 by HPT Vietnam Corporation (HPT), the US-based analytic software developer SAS Institute (SAS) and auditing firm Ernst and Young Vietnam (EY Vietnam), specialists, regulators and members of think-tanks in the financial-banking industry, raised concerns over the growing level of non-performing loans (NPLs) or bad debts in Viet Nam.

The local banking sector expects strong growth this year, given the high credit demand, healthy macro-economic conditions and the consolidation of banks, HPT said in a press release, adding that high NPL levels continue to loom over the country’s economy.

The State Bank of Viet Nam has emphasised that it will strictly control the quality and pace of lending growth, especially loans for companies that have “high implicit risks,” HPT said.

Dinh Ha Duy Linh, CEO of HPT Vietnam Corporation, speaks at the seminar on November 17. — Photo HPT Vietnam Corporation

“HPT is willing to enable banks to improve their risk management capability, with the help from technology expertise and risk management software solutions that HPT implements,” said Dinh Ha Duy Linh, CEO of HPT Vietnam Corporation.

Further, Eric Kong, Sales Director at SAS’ Asia Emerging Countries division, noted, "SAS technologies can adapt to the changing risk management needs of the Vietnamese market.”

Based on SAS’ solutions, banks can make the best use of the latest applications and behavioral scorecards to evaluate risks for their clients, Eric said.

They (the banks) can also “provide a basis for scoring loan applicants for virtually all lending lines, including credit cards, personal, home equity, mortgage and auto.”

Eric Kong, Sales Director at SAS’ Asia Emerging Countries division, speaks at the seminar on November 17. — Photo HPT Vietnam Corporation

It is inevitable to develop credit risk quantification models for Viet Nam’s banking-financial sector, Nguyen Thuy Duong, senior executive of EY Vietnam, said.

“EY is in a unique position to provide support to both state-owned and major joint-stock banks throughout Viet Nam in developing credit ratings and PD models, as well as analysing the gaps between current state and Basel 2 requirements.” — VNS