Leaders of Sacombank and EY Consulting Vietnam at the ceremony to kick off the ‘Internal Capital Adequacy Assessment Process’ project. The ICAAP project will help Sacombank identify, measure and evaluate risks effectively. — Photo courtesy of Sacombank

Sacombank has kicked off its ‘Internal Capital Adequacy Assessment Process (ICAAP)’ project with the assistance of EY Consulting Vietnam JSC.

The bank has implemented the State Bank of Vietnam’s Circular No.41 that requires banks and branches of foreign banks to comply with Basel II capital adequacy ratios from January 1 this year, and the project will help it meet the higher requirements under Basel II and comply with the SBV’s Circular 13 on internal controls.

The ICAAP project will help Sacombank effectively identify, measure and evaluate risks, and build a complete database and internal review process to assess the impact on its capital and profits during both normal and crisis conditions, thereby helping it map out backup plans and allocate capital appropriately to improve the effectiveness of its internal control and administration.

The completion of the ICAAP process will help protect the bank and its customers from market fluctuations and risks that may arise.

The project’s implementation roadmap is divided into three phases: reviewing, building and deploying tools.

The project is expected to help the bank continue to meet the requirements of Basel II.

Earlier Sacombank also carried out projects to adopt the higher requirements of Basel II into its regular activities such as the loan origination system, the credit risk quantification model, the risk management database framework, upgrading and perfecting the asset liability management framework, and building a centralized debt management and recovery system. — VNS