Vietnam International Bank (VIB) has become the first bank in Vietnam to complete the three pillars of Basel II, which are minimum capital, supervisory review and market discipline.

VIB's CEO Han Ngoc Vu delivers his speech at the ceremony in Hanoi
(Photo courtesy of VIB) 

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.

During an recent announcement ceremony in Hanoi, Tran Dang Phi from the State Bank of Vietnam (SBV) said he believed VIB's completion of Basel II pillars marks an important foundation for the bank, supporting safer and more efficient business activities.

VIB has embarked on the Basel II journey since early 2018 and became one of the first banks in Vietnam to fully comply with Circular 41 and now Circular 13 before the regulator’s deadlines.

At the event, the bank’s CEO Han Ngoc Vu said VIB considers the implementation of all Basel II three pillars as one of the important tasks in the long-term for the bank's risk management.

The bank posted revenue of more than 5.87 trillion VND (252 million USD) and pre-tax profit of 2.33 trillion VND (100 million USD) in the past nine months of 2019.

Total assets amounted to nearly 176 trillion VND (7.6 billion USD) while the bank’s credit outstanding balance reached 127 trillion VND (5.5 billion USD).

Non-performing loans decreased to 1.78 percent as of September 30 from 2.24 percent at the beginning of this year. Its equity saw a yearly increase 17 percent to 12.5 trillion VND (539 million USD), of which charter capital topped 9.24 trillion VND (398.5 million USD), up 18 percent year-on-year.