MB implements Basel III in liquidity risk management

With the strategic vision of becoming a financial group and a comprehensive digital transformation enterprise in the period of 2022 - 2026, MB identifies that smart and superior risk management is always an important foundation in strategic stages. As a pioneer bank in applying risk management standards according to international practices, MB has become one of the first banks to meet Basel II standards for all three pillars since 2020. The application of advanced liquidity risk management standards has helped the Military Commercial Joint Stock Bank (MB) stand firm in the face of market difficulties. During periods of market tension, MB always complies with the safety limits prescribed by the State Bank, maintaining abundant liquidity to ensure that MB has full capacity to ensure financial obligations in all possible situations. Aiming for higher standards, MB is always a pioneer in researching advanced practices and applying them in liquidity risk management. MB focuses on improving the quality of resource use, resource optimization, liquidity buffer, liquidity risk management capacity; In particular, the bank has proactively developed a tool to calculate the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) from 2021-2022 according to the strict regulations of the Basel Committee, and applied the calculation results in the management orientation, balancing growth targets, and ensuring sustainability in the bank's liquidity profile. In June 2024, within the scope of the Basel III project, PwC independently reviewed, evaluated and recognized MB's compliance with Basel III regulations in measuring LCR and NSFR. This is the basis for MB to be more steadfast in its choice to build a solid risk management framework, affirming strong, safe, effective and sustainable business development. Previously, MB has continuously won prestigious international awards on risk management such as: Bank with the best liquidity risk management activities in Asia - Pacific (2021) by The Asian Banker, Innovation Excellence Award by Oracle (2023) for organizations with outstanding innovation in applying OFSAA platforms to internal management and ensuring compliance with international standards (Basel II), Model Risk Manager Award by Celent (2024) for successfully implementing a near-real-time maximum loss (VaR) calculation tool. On the eve of its 30th birthday, MB continues to affirm itself as one of the pioneering banks in applying international risk management standards to ensure safe and sustainable development in the future, helping MB firmly implement its strategic vision of "Becoming a digital enterprise, a leading financial group." Source: https://nhipsongkinhte.toquoc.vn/mb-trien-khai-basel-iii-trong-quan-ly-rui-ro-thanh-khoan-20240629135939621.htm