Hanoi (VNA) – The Southeast Asia Commercial Joint Stock Bank (SeABank) said it has completed the second pillar of Basel II standards, which is supervisory review.
Together with the realisation of the first and third pillars of Basel II – minimum capital requirements and market discipline – last October, SeABank becomes the fifth bank in Vietnam to complete all three pillars.
Basel II is the second edition of the Basel Accords, which are recommendations on banking law and regulations issued by the Basel Committee on banking supervision. It aims to enhance competition and transparency in the banking system and make banks more resistant to market changes.
Under the second pillar, a bank must have an Internal Capital Adequacy Assessment Process (ICAAP) in place. It must conduct periodic internal capital adequacy assessments in accordance with its risk profile and determine a strategy for maintaining the necessary capital level.
The four other banks that completed the three pillars are the Vietnam International Commercial Joint Stock Bank (VIB), the Tien Phong Commercial Joint Stock Bank (TPBank), the Vietnam Property Joint Stock Commercial Bank (VPBank), and the Vietnam Maritime Commercial Joint Stock Bank (MSB)./.VNA
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