After announcing the successful implementation of risk management standards according to Basel III standards in October 2022, Nam A Bank continues to complete the development of methodologies and tools according to Basel III - Reforms standards according to international advanced risk management standards under the accompaniment and consultation of leading international consulting firm KPMG.
Customers transact at Nam A Bank.
While the requirements of Basel III focus mainly on improving the quality and quantity of capital, introducing liquidity indicators to ensure short-term liquidity (liquidity coverage ratio - LCR), long-term capital stability (net stable funding ratio - NSFR) and limiting the leverage ratio of credit institutions, to comply with Basel III - Reforms, in addition to complying with the requirements of Basel III, banks need to apply new risk measurement methods. Some new standards require: For credit risk implemented according to the internal rating - based model method - IRB (Internal ratings - based), Basel III - Reforms provides minimum thresholds to avoid banks from making internal estimates that are too low; Banks need to measure and manage credit valuation adjustment risk - CVA (Credit valuation adjustment).
Drawing on lessons learned from previous financial crises, the Basel Committee has introduced a completely new method of measuring market risk to overcome the limitations of the measurement method in previous standards. All these changes aim to improve the resilience to shocks, market fluctuations and increase the operational stability of credit institutions.
In order to improve internal management and operations according to Basel III standards, after completing the methodologies and calculation tools, Nam A Bank continues to complete the set of regulations on internal system operations according to Basel III. Specifically, the main regulations include: Regulations on the methodology for determining the capital adequacy ratio according to Basel III standards; Regulations on the methodology for determining the liquidity guarantee ratio LCR according to Basel III standards; Regulations on the methodology for determining the net stable capital resource ratio - NSFR according to Basel III standards; Regulations on the methodology for determining the leverage ratio according to Basel III standards; Regulations on information disclosure on capital adequacy ratio and liquidity safety ratios according to Basel III standards; Procedures for implementing, managing and monitoring compliance with the safety guarantee ratio in Nam A Bank's operations within the framework of international standards on Basel III risk management.
On the eve of its 31st birthday, Nam A Bank 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.
A representative of this bank shared: "The application of Basel III - Reforms demonstrates Nam A Bank's determination to meet the highest international standards, pioneer in technology application, and bring banking activities to new heights. We are committed to continuing to invest heavily to improve risk management capacity, improve internal control and audit, and make financial information transparent to ensure safe and effective operations, bringing the best benefits to customers and shareholders."
Nam A Bank has made continuous efforts to promote early application of international practices in risk management activities, confidently entering a new era, affirming its pioneering position in service quality, stable, safe and effective operations, continuing to bring good values to customers, partners, the community and contributing to the development of the Vietnamese banking system.
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