Southeast Asia Commercial Joint Stock Bank (SeABank) has just announced the completion of the second pillar of Basel II The internal capital adequacy assessment process (ICAAP), after the completion of pillar 1 and pillar 3 last October.
In October 2019, SeABank was approved by the Governor of the State Bank of Vietnam (SBV) before the deadline for Circular 41/2016/ TT-NHNN pillars 1 and 3 of Basel II. On July 2, 2020, the bank continued to announce the completion of the pillar 2 of Basel II ICAAP.
Along with completing the implementation of ICAAP to meet the requirements of SBV in Circular 13/2018/ TT-NHNN, SeABank is the fifth bank in Vietnam to complete all three pillars of Basel II, after VIB, TPBank, VPBank and MSB.
The early completion of Basel II confirms the ability and potential of risk management as well as demonstrates the bank’s ability to approach international standards.
Le Thu Thuy general director of SeABank said that the completion of deploying all three pillars of Basel II before the deadline as well as Moody’s keeping B1 credit rating for 2020 was the fulcrum for SeABank to continue going in advance in meeting the highest international standards, helping the bank to manage and run its business proactively, transparently, safely and sustainably. This is also the basis for the bank to affirm its position, potential and reputation with customers, partners, especially the foreign investment community and credit rating agencies.
ICAAP is an internal assessment of capital adequacy that makes it possible for banks to assess their own capital adequacy not only in normal business conditions but also in the context of adverse market movements, including key risk assessment components, risk appetite building, endurance test, capital planning, assessment, reporting and adequacy monitoring.
Implementing ICAAP plays an important contribution in improving risk management in the bank such as: Increasing awareness of risk management among all officers, staff and bank leaders; ensuring the appropriate level of risk strategy and business plan; more effectively measuring bank’s sensitivity to macroeconomic conditions such as interest rates, exchange rates, inflation, GDP, and real estate price volatility; utilising capital resources effectively through allocation of capital to each material risk and business unit, and integrating in the process of assessing business performance of banks.
