Sacombank kicks off its ‘Internal Capital Adequacy Assessment Process’


Since January 1, 2020, Sacombank has officially applied Basel II to its banking activities in compliance with the State Bank of Vietnam’s Circular No. 41. Sacombank has kicked off its ‘Internal Capital Adequacy Assessment Process (ICAAP)’ project with the assistance of EY Consulting Vietnam JSC and the project will help it meet the higher requirements under Basel II and comply with the State Bank of Vietnam’s Circular 13 on internal controls.

This project will help Sacombank effectively identify, measure and evaluate risks, and build a complete database and internal review process to assess the impact on its capital and profits during both normal and crisis conditions, hence, helping it map out backup plans and allocate capital appropriately to improve the effectiveness of its internal control and administration. The completion of the ICAAP process will help protect the bank and its customers from market fluctuations and risks that may arise.

The project’s implementation roadmap is divided into three phases: reviewing, building and deploying tools. The project is expected to help the bank continue to meet the requirements of Basel II in years to come.

Earlier Sacombank also carried out projects to adopt the higher requirements of Basel II into its regular activities such as the loan origination system, the credit risk quantification model, the risk management database framework, upgrading and perfecting the asset liability management framework, internal audit framework, upgrading pricing framework and building framework for market risk capital requirements, and building a centralized debt management and recovery system.