The HCM City Development Commercial Joint Stock Bank (HDBank) has received approval from the State Bank of Vietnam (SBV) to adopt Basel II standards from October 1st 2019.
Specifically, HDBank has met the stringent risk management standards of the SBV to ensure safe and more efficient, sustainable and more transparent business operations. With this decision, HDBank will officially apply the Basel II on capital safety earlier than expected.
Basel II is an international benchmark for risk management which commercial banks of Vietnam are aiming to gradually apply to enhance their risk management capacity and improve operational efficiency. To get approval, banks have to meet numerous strict regulations on capital, risk management system and investment in modern technology to well control all risks.
It is known that from 2015, HDBank has actively researched and coordinated with prestigious international consulting units to carry out Basel II. At the same time, the bank has always actively participated in the SBV’s programmes, complied with credit risk management measures, and focused on operational risk management to ensure the bank’s transparent and sustainable development.
With the operation of growing strongly and sustainably with effective risk management, HDBank for many years has maintained the leading asset quality in the banking sector with high return on assets (ROA) and return on equity (ROE). The bank’s separate bad debt ratio is well under control at only one percent.
