MSB completes all three pillars of Basel II
Together with the realisation of the first and third pillars of Basel II – minimum capital requirement and market discipline – in July 2019, MSB has become one of the first banks to complete all of the three pillars.
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.
Under the second pillar, a bank must have an Internal Capital Adequacy Assessment Process (ICAAP) in place. A bank must conduct periodic internal capital adequacy assessments in accordance with their risk profile and determine a strategy for maintaining the necessary capital level.
To meet the standards, the MSB has adopted a risk governance model based on big data analysis using artificial intelligence to seek and assess potential clients for credit card products. Accordingly, clients could apply online for credit cards within 24 working hours without submitting income statement or visiting its branches or transaction offices.
Nguyen Hoang Linh, MSB Acting General Director, said the early completion of the three pillars of Basel II will create a premise and momentum for the bank to gear towards higher international risk governance standards like Basel III, while helping the bank operate in a transparent, safe and sustainable way.
The bank’s net profit before provisioning of MSB in 2019 exceeded 2.2 trillion VND (94.3 million USD), up 23.5 percent over 2018. Its total assets reached nearly 157 trillion VND, up 14 percent year-on-year and surpassing its target by 3 percent.
The bank’s total pre-tax profit was 1.28 trillion VND, up more than 20 percent over 2018./.