HANOI, Vietnam, July 3, 2020 /PRNewswire/ — Southeast Asia Commercial Joint Stock Bank (SeABank – Vietnam) held an announcement ceremony of the completion of the second pillar of Basel II – Internal Capital Adequacy Assessment Process (ICAAP).
The event had participation of leaders and experts from the Bank Inspection and Supervision Agency and the State Bank of Vietnam along with representatives of the Board of Management and the Board of Directors of SeABank.
In October 2019, SeABank was approved by the Governor of the SBV before the deadline for the compliance with Circular 41/2016/TT-NHNN – pillars 1 and 3 of Basel II. Along with completing the implementation of ICAAP to meet the requirements of the SBV in Circular 13/2018/TT-NHNN, SeABank completes all three pillars of Basel II.
The early completion of Basel II confirms SeABank’s ability and potential in risk management as well as the ability to meet international standards. Furthermore, the Bank is continuing to reach out to more comprehensive international practices, including Basel II IRB, IFRS 9 and Basel III. Currently, SeABank has initially achieved the implementation results for the next phase, thereby confirming that the selection of implementing international practices is fully consistent with the capacity and orientation of SeABank.
Ms. Le Thu Thuy – General Director of SeABank said: "The completion of the implementation of all 3 pillars of Basel II before deadline as well as Moody’s maintaining the B1 rating for SeABank in 2020 are the fulcrum that give SeABank opportunity to meet the highest international standards, helping SeABank operate business proactively, transparently, safely and sustainably. This is also the basis for SeABank to affirm position, potential and prestige with customers, partners, especially foreign investment community as well as credit rating agencies".
ICAAP helps banks to assess their own capital adequacy in normal business conditions and in the context of adverse market movements, including Key risk assessment components, Risk appetite building, Endurance test, Capital planning, Assessment, Reporting and monitoring of capital adequacy.
Implementation of ICAAP has contributed significantly to improving risk management in the Bank such as: Increasing awareness of risk management; ensure the appropriate level of risk strategy and business plan; measure more effectively bank’s sensitivity to macroeconomic conditions such as interest rates, exchange rates, inflation, GDP; utilize capital resources effectively through allocation of capital and simultaneously integrate into the Bank’s business performance evaluation process.
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