Representatives from the State Bank of Vietnam, the Vietnam National Credit Information Center (CIC), the Embassy of the Republic of Korea, the Financial Supervisory Service of Korea, Consulting firms and Shinhan Bank Vietnam at the workshop. Photo: ShinhanBank
The event brought together key regulatory officials and experts from the State Bank of Vietnam (SBV), the National Credit Information Centre of Vietnam (CIC), the Embassy of the Republic of Korea in Vietnam, and the Financial Supervisory Service (FSS) of Korea, alongside major international consulting firms and financial specialists.
The workshop took place against the backdrop of Vietnam’s banking sector accelerating efforts to strengthen risk governance, enhance capital adequacy, and reinforce financial resilience. The issuance of Circular No. 14 by the SBV, which establishes a clear legal and technical framework for credit institutions to register and apply the IRB approach, represents a major milestone in aligning domestic banking practices with international standards under the Basel framework.
However, experts at the workshop emphasized that transitioning to the IRB approach remains a complex undertaking. It requires comprehensive historical credit datasets, robust quantitative methodologies, rigorous model calibration, independent validation systems, and strong ongoing supervisory governance.
A representative from F1, a Korean consulting firm, delivers a presentation. Photo: ShinhanBank
Leveraging South Korea’s extensive supervisory experience in approving and monitoring IRB systems, the workshop offered actionable insights and technical references for Vietnamese regulators and commercial banks. Key topics covered included application dossier preparation, internal rating system design, risk parameter estimation (PD, LGD, EAD), model validation standards, post-approval reviews, and supervisory practices.
Participants also engaged in in-depth discussions on operational challenges, the vital role of regulatory collaboration, and essential prerequisites to ensure a smooth, prudent, and market-tailored implementation of IRB in Vietnam.
Speaking at the seminar, Mr. Lee Jong Hyuck, Deputy General Director of Shinhan Bank Vietnam, noted: "Transitioning to an advanced risk management framework is a long-term strategic journey that demands sustained investments in data, technology, human resources, and governance. Through this workshop, Shinhan Bank aims to share Korea’s practical experience and contribute valuable perspectives to support research, policy guidance, and IRB execution in Vietnam."
Looking ahead, Shinhan Bank reaffirmed its commitment to leveraging its global technical capabilities and strong partnerships with Korean regulators to support the modernization and sustainable growth of Vietnam's banking system.
