Activities at a SeABank transaction office
Comprehensive risk management according to international standards In order to maximize support for business goals and build a solid foundation for sustainable development, SeABank continuously improves comprehensive risk assessment methods according to international standards and practices, while flexibly adjusting policies according to market fluctuations, ensuring the maintenance of asset quality, stable liquidity and a solid buffer. To strengthen the capital reserve foundation for risks, SeABank has completed all 3 pillars of Basel II ahead of schedule. SeABank is also one of the few pioneering banks to deploy and apply Basel III from May 2022 with strict requirements on meeting the Capital Adequacy Ratio (CAR), core capital components, buffer capital components, and liquidity risk management indexes. After 2 years of implementation, SeABank has continuously improved indicators on ensuring safe capital reserves for operations and enhancing liquidity resilience against events. Accordingly, the Bank applies the IMA (Internal Models Approach) method to measure liquidity tolerance index, calculate capital for market risk, and fully implement the Internal Capital Adequacy Assessment Process (ICAAP) to be ready for all scenarios. Thanks to that, the Bank always maintains a CAR ratio at a safe level higher than the minimum requirement of the State Bank of Vietnam (SBV), with a consolidated CAR ratio of 13.61% as of December 31, 2023. SeABank also applies the International Financial Reporting Standards (IFRS) early, in addition to the Vietnamese Accounting Standards when preparing and presenting financial statements. Thereby, the Bank strengthens risk management and control by improving the ability to measure and manage business results, creating a basis for reasonable resource allocation to increase capital efficiency. Managing environmental and social risks and promoting responsible credit In addition to managing inherent material risks, SeABank has also proactively developed and implemented an Environmental and Social Risk Management System (ESMS) and promoted green credit, aiming to combat climate change and realize the Government's goal of transforming to a zero net carbon economy. Since 2022, SeABank has comprehensively implemented environmental and social risk management in credit activities. Accordingly, 100% of credit transactions are screened, classified, and assessed for environmental and social risks, thereby identifying appropriate environmental and social risk management measures based on the identified risk level, while rejecting transactions that have serious and irreversible impacts on the environment and society. To improve efficiency and promote responsible credit projects, SeABank is constantly seeking companionship, financial and professional support from prestigious international partners, such as IFC, DFC, ADB, etc. Thereby, the Bank is confident in providing green financial and social financial products to maximally support small and medium enterprises, women-led enterprises, developing towards green economy, circular economy, meeting the world's strict production criteria, improving the efficiency of resource and energy use. Risk management on technology and digitalization platforms To strengthen the risk management platform to create momentum for business development, SeABank continuously promotes the implementation of the "Digital Convergence" strategy, focusing on investing in systems, applying advanced technology to enhance control, prevention and early detection of risks, thereby maintaining safe and continuous operations. SeABank has invested in applying advanced technology to improve the efficiency of risk management, control and early detection, and risk prevention in many aspects, such as exploiting Big Data to have a comprehensive and timely view of problems arising in transactions and building tools to identify suspicious transactions; applying AI, Machine Learning, Data Analytics to build models to improve the quality of risk assessment; developing data centers... In particular, SeABank especially prioritizes resources to prevent risks in technology safety and customer information security in the digital transformation period through investing in data loss prevention systems; risk management projects and enhancing card security such as Digital Authentication Framework or Mastercard Proactive Scanning; upgrading eKYC technology, ensuring integration of national population data and authenticating chip-embedded citizen identification cards to increase transaction security... Thanks to that, SeABank is certified to meet the highest standards of information security and safety according to ISO 27001, and at the same time becomes the first organization in Vietnam to be awarded the PCI DSS 3.2 Certificate for safety and security for payment card systems. SeABank has been rated by Moody's for many consecutive years at B1. Notably, in 2023, this organization rated SeABank at Ba3 for many important categories with a Stable outlook. Moody's also highly appreciated the improvement in asset quality management, high capital adequacy, lending activities and stable liquidity. Source: https://baodautu.vn/seabank-phat-trien-ben-vung-tren-nen-tang-quan-tri-rui-ro-vung-chac-d228677.html
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