Staff at VPBank. — Photo courtesy of the bank

Asia Risk, a prestigious magazine specialising in risk management and derivatives in the Asian market, has just honoured VPBank as 'House of the Year 2021' – the best bank in the field of risk management and derivative products in Viet Nam.

This prestigious award is testament to VPBank's outstanding capacity in providing effective financial solutions to meet the needs of corporate customers in Viet Nam.

The voting committee of the award includes representatives of leading credit institutions, banks, and fund management companies around the world. Through the objective review process, the voting committee was deeply impressed by VPBank’s ability to improve financial instruments, especially the ability to provide a wide variety of large-scale derivative products to customers with modern and advanced risk management systems according to international practices.

This prestigious award is testament to VPBank's outstanding capacity in providing effective financial solutions to meet the needs of corporate customers in Viet Nam. — Photo courtesy of the bank

Notably, due to comprehensive financial solutions accompanying customers, the total sales of derivative products including cross currency swaps (CCS) and interest rate swaps (IRS) of VPBank at the end of 2020 reached US$3 billion, equivalent to a growth of more than 750 per cent over the same period a year before.

In the second half of 2019, VPBank deployed the Kondor transaction management system (Kondor Treasury system) developed by Finastra, allowing automation of the entire transaction flow from business units to risk management, accounting and operation. This transaction management system has helped VPBank improve business efficiency significantly, saving 30 per cent of time and increasing total capacity by 25 per cent.

Pham Phu Khoi, Deputy General Director and Head of Financial Market Division of VPBank, commented that, although the implementation time was relatively short, the Kondor system had successfully built a complete solution related to exchange rate and interest rate derivatives, and simultaneously helped VPBank improve risk management by reflecting in a timely and accurate way the risk position according to the bank's mark-to-market valuation.

Dmytro Kolechko, Head of Risk Management Division, remarked that to ensure conformity with IFRS 13 and the advanced requirements of Basel, at the time of implementing the Kondor project, VPBank was the only domestic bank that applied Market data validation before conducting mark-to-market valuation to perform accurate customer position valuation according to market fluctuations, avoid inappropriate margin notice due to market data error.

The above difference helped VPBank closely monitor market fluctuations, to make professional judgments and grasp potential risks; from there, VPBank could make suggestions on effective hedging strategies with the most optimal price for customers.

With all the above efforts, VPBank is proud to be awarded the 'House of the year 2021' for the pioneering spirit of a top commercial bank in developing a variety of financial instruments including sophisticated and complex derivative products to provide the best financial solutions to help corporates avoid potential financial risks.

“The title of 'House of the Year 2021' also shows VPBank’s great determination to integrate with modern global financial practices to provide the market with the most advanced and effective risk management solutions. This award once again affirms the reputation and trust that expert and customers rendered to us in the field of derivative products in Viet Nam," the VPBank's leader affirmed. — VNS