return icon

ACB becomes seventh bank in Vietnam to meet Basel II standards

The Asia Commercial Bank late last week was officially given approval from the State Bank of Viet Nam to apply Basel II standards, raising the number of Vietnamese banks meeting the global norms ahead of the SBV’s schedule to seven.

 Basel II standards help Vietnamese banks get high credit growth limit

The central bank has allowed ACB to apply Basel II from this month. Photo ACB


According to the SBV’s decision, all of ACB’s activities have started to follow Circular 41/2016-TT/NNNN regulating the application of Basel II standards since this month.

Basel II is the second edition of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on banking supervision. Basel II, which comprises minimum capital requirements, supervisory review and market discipline, aims to enhance competition and transparency in the banking system and make banks more resistant to market changes.

The SBV has so far approved only seven local banks to apply Basel II standards earlier than its deadline of 2020. They are Vietcombank, VIB, OCB, MBBank, TPBank, VPBank and ACB.
With the application of Basel II ahead of the SBV’s deadline, the banks will be prioritised by the SBV in getting higher credit growth limits this year. According to current regulations, the SBV sets a credit growth limit for the entire year for each bank to ensure the credit growth target of the entire banking system during the year and all local banks expect to have high credit growth limit as their income still mainly depends on lending.

At last month’s 2019 annual general meeting of shareholders, Chairman of VIB Dang Khac Vy said VIB expected the SBV to approve its credit growth limit proposal of 35 per cent in 2019 as it was one of the banks to meet the central bank’s Basel II standards.

MB and TPBank also set high credit growth targets of 20 per cent for this year and are waiting for approval from the central bank. As for MBBank, industry insiders forecast the bank could then ask for another extension to increase its credit growth limit to 30 per cent this year.

Meanwhile, credit growth targets set at other banks, which haven’t met Basel II standards, are lower. Techcombank, for example, wants credit growth of 13 per cent while the figure for Kien Long Bank is 15 per cent.




Positive prospects for Vietnam’s stock market this year


Prime Minister launches New Year tree planting festival

Vietnam supports expansion of UN Security Council

Vietnam supports the expansion of the United Nations Security Council (UNSC) in terms of both permanent and non-permanent members, with the fair representation of groups of nations, especially underrepresented ones, taken into account.

About 9 million Vietnamese travel during Tet

The tourism sector served about 9 million domestic tourists in the week-long Lunar New Year (Tet) holiday, up about 47.5% over the previous Tet, according to the Vietnam National Administration of Tourism (VNAT).

Five players compete for 2022 Vietnam Golden Ball Awards

The top 5 players in the final round of the Vietnam Golden Ball Award 2022 have been officially revealed.

Vietnam's steel industry to gradually recover in 2023

Domestic steel demand is expected to keep falling due to the property market slump and tightened monetary policy, economic downturn in many export markets and a rise in supply making the outlook for the industry in 2023 poor, analysts said.

Railway network aims to turn tide against low-cost airlines, cars with improved service

The railway industry is striving to regain its past glory after decades of struggling to compete with low-cost airlines and flexible car transport.

HCM City to pilot issuance of electronic civil status records

The HCM City Department of Justice has proposed the Ministry of Justice pilot the issuance of electronic civil status records instead of a paper version as part of efforts to enhance satisfaction with civil status registration.

Spiritual sites to visit in spring around Hanoi

Some of our recommendations might be the perfect place for you and your loved ones to spend the spring.

Huong Pagoda crowded on the first day of spring festival 2023

Despite the cold weather, thousands of people flocked to the Huong (Perfume) Pagoda Festival in Huong Son commune, Hanoi’s outlying district of My Duc on the opening day to celebrate the new year.

Data centers: Vietnam's bright spot

Under the impact of Covid-19, many activities have moved to online platforms and amount of data uploaded has been increasing.

More Vietnamese scientists returning to home country

More Vietnamese scientists decided to return to the country with a desire to devote themselves to their homeland’s growth.

Hoang to defend WBA belt in hometown next month

Truong Dinh Hoang announced the bout on his Facebook page on February 26, though the challenger has yet to be named.

Sea tourism and expectations for a 'made in Vietnam' fleet

The number of cruise tourists accounts for only 2-3% of the total number of international visitors to Vietnam.

Hanoi’s tourism sector rakes in over VND1 trillion during Tet holiday

The capital expects to welcome roughly 332,000 visitors, including 32,000 international guests, during the Lunar New Year holiday from January 21 to January 26, with total revenue anticipated to reach more than VND1 trillion.