Viet Capital Commercial Joint Stock Bank has received approval from the State Bank of Vietnam to adopt Basel II standards, taking the number of banks meeting the global norms ahead of schedule to 12.

Basel II is an international benchmark for risk management that major banks around the world adopt to ensure operational safety through the application of high standards and tools in business and risk management.

Viet Capital Bank said in a press release that the central bank’s green light underlines the fact that it has met a number of stringent requirements related to business management, risk management system and technology.

Understanding the importance of risk management, the lender had established a risk management project in accordance with Basel II standards at the beginning of 2017.

The bank has gradually completed the roadmap to ensure it meets Basel II norms before schedule.

It has tied up with KPMG Tax and Advisory Limited to develop tools to verify project results to ensure transparency and strict adherence to standards.

By meeting Basel II standards, newly approved banks will have a more open mechanism for credit growth limits, helping overcome a bottleneck restricting growth and profitability. — VNS