Shinhan Vietnam Bank Fully Implements Basel II... Establishes Advanced Risk Management System

Complete Basel II Implementation through Establishment of Vietnam Basel II's Three Pillars (Standards)
Automation of Risk Management System and Establishment of Internal Rating Calculation Framework

On the 27th, Deputy Head Jeong Gwang-jun (center) and employees of the Risk Management Headquarters pose for a commemorative photo at the Shinhan Vietnam Bank headquarters.

[Asia Economy Reporter Kangwook Cho] Shinhan Bank announced on the 27th that its local subsidiary in Vietnam, Shinhan Vietnam Bank, has established the Basel II-Pillar 2 (Internal Capital Adequacy Assessment Process) system, thereby fully implementing Basel II’s standard Pillars 1, 2, and 3.

Following the early implementation of Basel II-Pillar 1 (minimum capital requirements) and Basel II-Pillar 3 (market discipline and enhanced risk disclosure) last year, Shinhan Vietnam Bank has now built the Basel II-Pillar 2 system, completing the full implementation of Basel II, an international risk management standard, and establishing an efficient and sound capital management framework.

Through the establishment of Basel II-Pillar 2, the bank can now manage key risks including credit risk, market and operational risks, as well as interest rate risk, concentration risk, and foreign exchange settlement risk. In particular, the risk management and calculation systems have been automated to improve operational efficiency.

Additionally, internal capital calculations and credit risk-weighted assets (RWA) are derived using internal rating-based approaches for each stress scenario, meeting the Basel Committee’s Basel II requirements and enabling differentiated risk management compared to other banks.

A representative of Shinhan Vietnam Bank stated, "The full implementation of Basel II has become an opportunity for Shinhan Vietnam Bank’s risk management capabilities to be internationally recognized," adding, "Based on our excellent risk management system, we will strive to maintain balanced growth in our future global operations."

Meanwhile, Shinhan Vietnam Bank was the first foreign bank to obtain Basel II implementation approval from the State Bank of Vietnam last year and continues to play a leading role in risk management in Vietnam by conducting annual training on risk management for officials from the State Bank of Vietnam.

This content was produced with the assistance of AI translation services.