ACB prioritizes risk management strategy for sustainable development

(Chinhphu.vn) - Recently, Asia Commercial Joint Stock Bank (ACB) announced the completion of the project to build a capital calculation platform for credit risk based on the Internal Ratings-Based (IRB) method, including both basic (FIRB) and advanced (AIRB) levels.

A representative from KPMG presentedACB with a letter confirming the project's completion.

ACB: A pioneering bank in implementing Basel III

As one of the 10 banks selected by the State Bank of Vietnam (SBV) to pilot Basel III implementation in Vietnam, ACB also serves as a member of the Steering Committee and the Working Group for the implementation of Basel Capital Standards. This is a recognition not only of ACB's capacity to implement complex projects, but also of its strategic vision and readiness to adopt international governance standards.

The IRB project has been implemented by ACB since 2024 to meet the requirements of the State Bank of Vietnam. Accordingly, the bank has finalized the model and operational processes for calculating credit risk capital and data platforms. The internal models accurately reflect the specifics of risk and contribute to standardizing credit control, and are developed based on real data from ACB's loan portfolio.

Mr. Nguyen Van Hoa, Deputy General Director of ACB and Project Leader of IRB, said that the completion of the project demonstrates ACB's pioneering role in implementing advanced Basel standards in the Vietnamese market, thereby aiming for increasingly professional risk management, enhanced transparency, and sustainable development in accordance with advanced international standards.

Mr. Nguyen Van Hoa, Deputy General Director of ACB and Project Manager, delivered a speech at the project completion announcement ceremony.

IRB helps ACB improve its risk management capabilities.

The successful implementation of the IRB is a significant contribution to the completion of the State Bank of Vietnam's Basel roadmap, and also a crucial step in fulfilling ACB's strategy of continuously improving and enhancing risk management standards. The IRB helps ACB improve its risk management capabilities, increasing the accuracy and relevance of risk estimation tools to the bank's specific risk characteristics.

The IRB also serves as a positive signal to the market and investors. In the context of credit rating agencies and international capital flows increasingly prioritizing risk control capabilities, transparency, and adaptability to ESG standards, the IRB platform is clear evidence of ACB's deep operational capacity.

To calculate capital and estimate credit risk according to the IRB, banks must meet stringent requirements regarding measurement methods, data quality, and model management. Therefore, ACB has invested resources in data collection, building, and managing large-scale data centers. In particular, it has developed comprehensive models with high applicability in business operations and risk management.

ACB is currently among the top-rated banks, having received an initial long-term issuer credit rating of AA+ from FinnRatings with a "Stable" outlook. FinnRatings also assesses ACB's business position as "Good". ACB consistently maintains its leading position among private commercial banks in Vietnam.

Le Nguyen

Source: https://baochinhphu.vn/acb-uu-tien-cho-chien-luoc-quan-tri-rui-ro-de-phat-trien-ben-vung-102250819170347933.htm