Techcombank was entitled to apply Basel II on capital safety since July 1, 2019.
The Governor of the State Bank of Vietnam (SBV) issued Decision No.1200/QD-NHNN on Vietnam Technological and Commercial Joint-Stock Bank (Techcombank) applying Circular No.41/2016/TT-NHNN.
Specifically, the Governor of SBV decided that Techcombank applied the Circular 41/2016/TT-NHNN dated December 30, 2016 of the Governor of SBV to regulate the capital adequacy ratio for foreign banks and branches (Circular 41) from July 1, 2019.
Techcombank was responsible for for officially operating the capital adequacy ratio system no later than June 22, 2019; issued or amended or supplemented internal regulations according to commitments in Official Letter No.5040/2019/TGD-TCB dated June 4, 2019.
Techcombank complied with the provisions of Circular 41 and implemented the reporting regime of capital adequacy ratio for Circular 41 under the guidance of SBV. During the period from July 1, 2019 to December 31, 2019, Techcombank implemented the regime of reporting on the minimum capital adequacy ratio as prescribed in Circular 36/2014/TT-NHNN dated November 20, 2014 of the Governor of SBV stipulating safety limits and ratios in the operation of foreign credit institutions and bank branches.
Up to now, eight banks have been accepted to apply Basel II early, including Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam International Commercial Joint Stock Bank (VIB), Orient Commercial Joint Stock Bank (OCB), Tien Phong Commercial Joint Stock Bank (TPBank), Military Commercial Joint Stock Bank (MB), Vietnam Prosperity Joint-Stock Commercial Bank (VPBank), Asia Commercial Joint Stock Bank (ACB) and Techcombank.
