BizLIVE - HDBank (HoSE: HDB) implements the upgrade from Basel II to Basel III. Up to now, the bank has applied 2 indicators of Basel II: LCR– Liquidity Coverage Ratio and NSFR – Net Stable Fund. Moreover, the NSFR index has reached 150%, higher than the minimum of 100%.
HDBank Pioneers Basel III Implementation

HDBank's steps continue to demonstrate its pioneering position in meeting international standards along with a few Vietnamese banks. By the end of 2020, HDBank was also one of the first banks to announce the completion of all 3 pillars of Basel II standards, in line with Circular 41 and Circular 13 of the State Bank of Vietnam.

Since mid-2019, with the support of the world's leading consulting firms, HDBank has implemented the upgrade to Basel III by categories, in which priority is given to liquidity risk management, market risk management, etc. The bank has developed a rather complex system of methodology, policies, organizational structure and calculation tools in order to implement this upgrade.

Basel III, issued in 2010 right after the 2007-2009 financial crisis, is a new version of the global banking standard which improves upon Basel II, and is internationally recommended to apply from January 1, 2023.

Stemming from the experience of maintaining a sustainable growth in banking operations, Basel III has therefore raised standards/requirements for equity capital, managing the securitization of credits, and especially high and stable liquidity to help banks overcome economic crisis situation through the application of LCR, NSFR, etc.

In the context of the world economy, Vietnam faces many challenges due to the Covid-19 pandemic, international credit rating agency Moody’s has maintained HDBank’s B1 rating and raised the bank’s outlook to Stable.  The bank achieved a CAR (according to Basel II) of 12.1%, equivalent to 150% of the minimum level of 8%.

In addition, the Bank has also completed many important projects on automatic treasury system, digital banking transformation strategy, 5-year business strategy, etc. with the support of world-leading consulting firms. Along with a strong financial foundation, a potential customer ecosystem, and an appropriate business strategy, HDBank has been and is ready for rapid and sustainable growth in the coming time.

VAN CAO