The State Bank of Vietnam (SBV) has issued a Decision on the application of Circular 41/2016/TT-NHNN of Vietnam Thuong Tin Commercial Joint Stock Bank (Vietbank).
Specifically, from December 1st 2019, Vietbank will apply Circular 41/2016/TT-NHNN dated December 30th 2016 of the SBV’s Governor stipulating the capital safety ratio of banks and foreign bank branches.
Vietbank is responsible for (1) switching the official operation from the main system to the backup system for the Capital Adequacy Ratio (CAR) calculation system in December 2019 under the plan in Report No.106/2019/TT-CNTT dated October 8th 2019 of Vietbank; (2) adjusting the credit granting determination to be in accordance with the provisions in Circular 41 in accordance with Report No.70/BC-KTNB dated October 7th 2019 of Vietbank’s Internal Audit; (3) complying with the provisions of Circular 41 and performing the statistical reporting on CAR for Circular 41 under the guidance of the SBV.
From December 1st 2019 to the end of December 31st 2019, Vietbank simultaneously implements the reporting on the minimum CAR as prescribed in Circular 36/2014/TT-NHNN dated November 20th 2014 of the SBV’s Governor which regulates safety limits and ratios in operations of credit institutions and foreign bank branches (amended and supplemented).
Thus, VietBank is the 14th bank approved by the SBV to apply Basel II standards, including Commercial Joint Stock 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), Asia Commercial Joint Stock Bank (ACB), Vietnam Prosperity Commercial Joint Stock Bank (VPBank), Military Commercial Joint Stock Bank (MB), Vietnam Technological and Commercial Joint Stock Bank (Techcombank), Maritime Commercial Joint Stock Ban (MSB), HCM City Development Commercial Joint Stock Bank (HDBank), Shinhan Bank, Viet Capital Commercial Joint Stock Bank (VietCapitalBank), Southeast Asia Commercial Joint Stock Bank (SeABank), and Vietbank.
In the first nine months of 2019, Vietbank’s pre-tax profit reached 429 billion dong, up by 42 percent over the same period of last year. In the end of September, the total assets of Vietbank were 61.505 trillion dong, up by 19 percent over the beginning of the year. In which, lending to customers increased by 10.3 percent to 39.143 trillion dong and mobilisation from customers increased by 13.8 percent to 45.351 trillion dong.
On September 30th 2019, Vietbank’s on-balance sheet bad debts reached 481 billion dong, up by 38 billion dong compared to the end of 2018. The ratio of bad debts on total outstanding loans declined from 1.29 percent to 1.23%.
