National Citizen Commercial Joint Stock Bank (NCB) said that the bank has completed developing the programme and data system to calculate capital adequacy ratio (CAR) according to Basel II standards as prescribed in Circular 41/2016/ TT-NHNN. This is the first success in standardising the capital management tool to serve as the foundation for NCB in consolidating its standardised management and administration system as required by Basel II.
Previously, on June 21, 2019, NCB signed a contract with the Joint Venture of Blackice and Raffles Vietnam, which is an ERA solution provider and implementation consultant for the Circular 41 and Basel II Project of NCB.
After nearly eight months of implementation, NCB has completed the construction of an information technology system for data management, calculation of own capital and assets according to credit risks and capital requirements for operational risks, market risk and capital adequacy ratio as required by Circular 41.
NCB has been continuously adjusting the organisational model, building and adjusting regulations, policies and risk management processes as required by Circular 41 and Circular 13 to complete the risk management framework of the bank. This is also the goal and roadmap in the restructuring plan of NCB.
NCB leadership representative said: “NCB is completing documents to ask the State Bank of Vietnam (SBV) for approval to apply and carry out Basel II in accordance with regulations. The bank has collected necessary information to calculate the minimum capital adequacy ratio in accordance with Circular 41 and Basel II standards”.
Therefore, the serious application of Circular 41 and Circular 13 is the basis for NCB to develop business strategies, good customer policy, risk management and pricing policy to optimise capital and risk-weighted assets in the near future.
