On June 17th, Maritime Commercial Joint Stock Bank (MSB) has received the decision of the State Bank of Vietnam (SBV) to apply Circular 41 which regulates the capital safety ratios for banks and foreign bank branches according to the Basel II international standards.
The bank satisfies the Basel requirements with a Capital Adequacy Ratio (CAR) of over nine percent (regulated at eight percent). MSB said that the compliance with the Basel II means that the bank is accredited as operating safety, effectively and transparently under higher risk management principles, in line with international standards, helping it improve position and increase competitiveness in the market.
MSB is one of the 10 banks participated in piloting the implementation of Basel II standards in the first phase, which included Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank), Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank), Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV), Military Commercial Joint Stock Bank (MB), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), Vietnam Technological and Commercial Joint Stock Bank (Techcombank), Asia Commercial Joint Stock Bank (ACB), Vietnam Prosperity Commercial Joint Stock Bank (VPBank), Vietnam International Commercial Joint Stock Bank (VIB), and MSB.
The second phase is for commercial banks having equity in accordance with the Basel II standards, in which at least 12 -15 banks successfully apply this set of standards.
Initially, the time limit for the pilot was fixed from February 2016 to the end of 2018, and the second phase was set by 2020. However, as raising equity faces numerous difficulties, the deadline for piloting the Basel II application has been postponed to 2020.
