VIETCOMBANK PROFILE
Strongly
leading the way
Corporate Governance
TOTAL ASSETS
VND 1.8 quadrillion
Corporate Governance
Activities of the Board of Directors
In 2022, Vietcombank’s Board of Directors held 55 meetings and consulted in ballots for 130 cases to guide and direct Vietcombank’s operations from time to time, to consider and decide on matters within the authority of the Board of Directors, or discuss a number of specific topics.
In 2022, Vietcombank’s Board of Directors held
55meetings
Committees within the Board of Directors
Risk Management Committee
Risk Management Committee assisted the BOD in approving appropriate policies and directions with regard to various types of risks (credit risk, market risk, operational risk, etc.) in each period, including defining risk ratios, limits/restrictions and risk appetite of the Bank.
In 2022, the Risk Management Committee held 04 regular meetings, coordinated with relevant departments to continuously developing and completing Vietcombank’s regulations/models. In addition, the Risk Management Committee also organizes seminars, exchanges with experts, comments and assessments on the current and future macroeconomic situation. The Risk Management Committee advises and proposes to the BOD strategies, risk management policies, and measures to prevent risks in many areas of operation. In line with the change of senior personnel and the actual operation situation, in 2022 VCB has strengthened the personnel of the Risk Management Committee.
Human Resource Committee
The Human Resources Committee consults and advises the Board of Directors on issues related to human resources, salary, remuneration, bonus and other welfare policies of Vietcombank. After the regulatory documents on personnel management were promulgated synchronously, the Human Resources Committee was actively and proactively consulting, evaluating, and proposing the appointment planning for authorized cadres, consolidating Organizational model and network development, acquiring personnel in line with Vietcombank’s business strategy and goals.
Activities of the Supervisory Board
The Supervisory Board supervised the BOD and BOM in implementing VCB’s 2022 business orientations and goals approved by the General Meeting of Shareholders, monitoring compliance with the laws, the Bank’s Charter in governance. In 2022, the BOD and BOM proactively and promptly promulgated policies and action plans, proposed appropriate solutions, and focused on drastically implementing measures to promote business and accelerate progress, focus on solving and removing difficulties and problems of the units in the whole system to ensure business development to achieve the goals. In general, the management and administration activities of the BOD and the BOM have complied with the provisions of the Laws on Credit Institutions and the Charter of the Bank.
In compliance with the provisions of the Law on Credit Institutions, the Supervisory Board monitored the list/updated the list of founding shareholders, major shareholders, members of the Board of Directors, members of the Supervisory Board, the General Director, and related persons of members of the Board of Directors, members of the Supervisory Board, and periodically updating information.
INVESTOR RELATIONS
Thanks to the efforts of the whole system and the flexible management in the right direction, Vietcombank has achieved impressive growth with the largest credit growth scale in the whole industry. Asset quality was maintained with the NPL ratio continuing to be controlled at 0.68%. Vietcombank’s leading position in asset quality and operational efficiency continues to be affirmed when in 2022. Vietcombank has been upgraded by all three international credit rating agencies, namely Fitch Ratings, Moody’s and S&P.
View moreRISK MANAGEMENT
GENERAL INFORMATION
In 2022, Vietcombank continues to maintain the minimum capital adequacy ratio to meet risk appetite as well as legal thresholds.
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The first line is to identify, control and mitigate risks. -
The second line is to develop risk management policy, internal regulations on risk management, measurement, and monitoring in compliance with the law. -
The third line is for internal auditing.
At the same time, the bank strengthens and enhances role and activities of Committees, Councils and Departments in risk management, such as: Risk Management Committee, Risk Council, Risk Management Department, Compliance Department, and Internal Audit Department. Thereby, it helps to improve the effectiveness of risk control, while actively supporting business activities to bring the best results for the Bank.
KEY RISK MANAGEMENT
Credit Risk Management
Vietcombank’s credit risk management framework includes organizational structure, policies, processes, models, limits and reports. Several results of credit risk management lately:
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Operational Risk Management
The operational risk management framework of Vietcombank has been established, fully implemented and continuously improved, including model, organizational structure, system of policies and procedures for operational risk management, appetite and operating risk limits, ensuring compliance with regulations of the State Bank of Vietnam in Circular 13/2018/TT-NHNN and advanced Basel II standards, aiming to meet Basel III standards.
In 2022, Vietcombank continued to focus and strengthen operational risk management with the aim to minimize operational risk losses to protect the Bank, its shareholders and customers.
Market Risk Management
The market risk management framework is a close cooperation of organizational structure, policies, processes, models, limits and reports of market risks with international standards. Market risk management is carried out at each business unit and operational unit based on each risk profile in particular and Vietcombank’s risk appetite in general. Based on synchronous market risk management framework, Vietcombank can actively prevent risks to limit the impact of market fluctuations.
In 2022, Vietcombank continued to periodically review and update policies, procedures, methodologies while supplementing and upgrading systems, models, measurement and market risk management programs to meet the State Bank of Vietnam’s regulations as well as international practices.
Liquidity Risk Management
Vietcombank’s liquidity risk management framework has been fully set up with calculation models, organizational management structures, internal policies and procedures, processes, regulations and overall limits to identify, measure, supervise and report risks according to international practices and Basel standards, and strictly comply with the State Bank of Vietnam’s regulations on solvency and liquidity ratios in banking operations. Regulations, processes, limits, liquidity risk management tools, etc. are reviewed and updated annually to promptly adapt to meet the regulatory requirements and implementation reality within the Bank.
Continuing and promoting in 2021, in addition to strict daily monitoring and control of liquidity risk, Vietcombank promptly identified and detected liquidity risk due to the impact of Covid-19 and contingency plan for liquidity backup.
Interest rate risk management on Bank book
For interest rate risk management, Vietcombank has established a comprehensive system of policies, processes and limits to identify, measure, supervise and report risks according to international practices such as Basel II and aiming to meet Basel III as well as comply with the SBV’s regulations at Circular No. 13/2018/TT-NHNN.
In 2022, Vietcombank always monitors and supervises interest rate risk limits on the bank book to ensure that interest rate risk limits on the bank book always remain within the established limits.
Concentration risk management
Vietcombank has established a comprehensive concentration risk management framework, composed of organizational model and structure, comprehensive system of policies, processes, regulations, and limits to identify, measure, supervise and report risks for compliance with the State Bank of Vietnam’s regulations as well as Vietcombank’s internal regulations.
In 2022, Vietcombank constantly supervised and monitored credit limits of concentration risks to ensure the credit limits to be maintained within the established limits. In addition, Vietcombank continues to improve the the framework for testing the capital endurance to credit risk and credit concentration risk in order to optimize capital sources in the bank’s business activities.
For concentration risks in self-trading, Vietcombank officially deployed management tools based on criteria to identify trading portfolio for limit setting in order to ensure the diversity and interactivity; the limits were set based on the maximum proportion of the trading volume, the currency and the counterparty compared with the total trading balance.