Shinhan Bank Vietnam, a local unit of Shinhan Bank in Vietnam, said on Oct. 2 that it has won approval from the State Bank of Vietnam to implement "Basel 2."
Shinhan Bank Vietnam's approval to implement the "Basel 2" is the first case among foreign banks in Vietnam, including Korean banks. This will allow Shinhan Bank Vietnam to further solidify its position as a leading foreign bank in Vietnam as it is recognized for its ability to manage risks while enhancing its external credibility.
Currently, Shinhan Bank Vietnam operates 36 networks across Vietnam and is successfully pushing for operations there by expanding its business models, including the launch of the CIB headquarters and the introduction of the PWM model.
Since the Vietnam's central bank issued an enforcement ordinance in December 2016 requiring all Vietnamese banks to implement "Basel 2" to advance and stabilize their financial services, Shinhan Bank Vietnam has been making great efforts to get approval for the implementation of "Basel 2" by expanding capital and overhauling risk management systems.
In order to maintain the managerial soundness of financial institutions, Basel II requires them to set aside sufficient capital to counter various risks with international standards commonly accepted worldwide, as well as capital for risks of financial losses arising from computer system errors, employee misconduct and external accidents.
"We believe that the approval of Vietnam's central bank is the result of the efforts made by Shinhan Bank Vietnam, such as risk management system built by the bank and training of professionals in the field based on Shinhan Bank's advanced management techniques," a Shinhan Bank official said.