BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC NGOẠI THƯƠNG NGUYỄN ANH TUẤN QUẢN TRỊ RỦI RO TRONG KINH DOANH CỦA NGÂN HÀNG THƯƠNG MẠI VIỆT NAM THEO HIỆP ƯỚC BASEL LUẬN ÁN TIẾN SỸ KINH TẾ Hà Nội, 2012 BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC NGOẠI THƯƠNG o0o -NGUYỄN ANH TUẤN QUẢN TRỊ RỦI RO TRONG KINH DOANH CỦA NGÂN HÀNG THƯƠNG MẠI VIỆT NAM THEO HIỆP ƯỚC BASEL Chuyên ngành: Kinh tế giới quan hệ kinh tế quốc tế Mã số: 62.31.07.01 LUẬN ÁN TIẾN SỸ KINH TẾ NGƯỜI HƯỚNG DẪN KHOA HỌC PGS, TS, Nguyễn Thị Quy PGS, TS, Nguyễn Đình Thọ Hà Nội, 2012 LỜI CAM ĐOAN Tôi xin cam đoan luận án tiến sỹ có tiêu đề “QUẢN TRỊ RỦI RO TRONG KINH DOANH CỦA NGÂN HÀNG THƯƠNG MẠI VIỆT NAM THEO HIỆP ƯỚC BASEL” cơng trình nghiên cứu riêng Các số liệu sử dụng luận án có nguồn trích dẫn đầy đủ trung thực Kết nêu luận án chưa cơng bố cơng trình khác Hà Nội, ngày tháng năm 2012 Tác giả luận án Nguyễn Anh Tuấn Lời cảm ơn Trong trình xây dựng đề cương, nghiên cứu hoàn thành luận án này, nghiên cứu sinh nhận nhiều giúp đỡ từ thầy, cô Ban giám hiệu, Sau Đại học, khoa Tài Ngân hàng Trường Đại học Ngoại thương Đặc biệt, học viên nhận hướng dẫn tận tình PGS, TS, Nguyễn Thị Quy PGS,TS, Nguyễn Đình Thọ Nhân dịp này, cho phép học viên bày tỏ lòng cảm ơn chân thành tới PGS, TS, Nguyễn Thị Quy, PGS, TS, Nguyễn Đình Thọ thầy khoa Sau đại học Đồng thời, nghiên cứu sinh xin cảm ơn Cơ quan tra giám sát Ngân hàng Nhà nước Việt Nam, Ban lãnh đạo Ngân hàng TMCP Công thương Việt Nam, Ngân hàng TMCP Ngoại thương Việt Nam, Ngân hàng Đầu tư Phát triển Việt Nam, Ngân hàng Nông nghiệp Phát triển nông thôn Việt Nam, Ngân hàng TMCP Á châu, Ngân hàng TMCP Đông Nam Á, Ngân hàng TMCP Quốc tế Việt Nam, Ngân hàng TMCP Kỹ thương Việt Nam, Ngân hàng TMCP Việt Nam Thịnh Vượng số ngân hàng khác tạo điều kiện hỗ trợ thông tin, liệu tài liệu trình nghiên cứu sinh thực luận án Nguyễn Anh Tuấn Nghiên cứu sinh khóa 12 Trường ĐH Ngoại thương i MỤC LỤC MỤC LỤC……………………………………………………………………… …i Danh mục viết tắt……………………………………………………………… iv Danh mục bảng biểu ………………… …… …………………………… ….vii Danh mục hình vẽ…………………….…………………… ……………… …viii CHƢƠNG NHỮNG VẤN ĐỀ CHUNG VỀ QUẢN TRỊ RỦI RO TRONG KINH DOANH CỦA NGÂN HÀNG THƢƠNG MẠI THEO HIỆP ƢỚC BASEL 1.1 Ngân hàng thƣơng mại quản trị rủi ro kinh doanh NHTM …………………………………………………………………………… 1.1.1 1.1.2 Rủi ro hoạt động kinh doanh NHTM 12 1.1.3 1.2 Ngân hàng thương mại Quản trị rủi ro hoạt động kinh doanh NHTM 16 Quản trị rủi ro kinh doanh NHTM theo Hiệp ƣớc Basel .22 1.2.1 Sự đời trình phát triển Hiệp ước Basel .22 1.2.2 Nội dung quản trị rủi ro kinh doanh NHTM theo Hiệp ước Basel………… 28 1.3 Tình hình áp dụng Hiệp ƣớc Basel NHTM số nƣớc giới………… 54 1.3.1 Việc áp dụng Basel NHTM nhóm nước G-10 55 1.3.2 Việc áp dụng Basel NHTM số nước phát triển G-10 57 1.3.3 Bài học rút từ thực tiễn áp dụng Hiệp ước Basel quản trị rủi ro số nước giới 61 CHƢƠNG 63 THỰC TRẠNG QUẢN TRỊ RỦI RO TRONG KINH DOANH CỦA NHTM VIỆT NAM THEO HIỆP ƢỚC BASEL .63 2.1 Tổng quan hệ thống NHTM Việt Nam .63 2.1.1 Lịch sử hình thành 63 2.1.2 Năng lực hoạt động hệ thống NHTM Việt Nam 67 ii 2.1.3 Tác động điều kiện kinh tế vĩ mô đến hoạt động hệ thống NHTM Việt Nam .72 2.2 Thực trạng quản trị rủi ro kinh doanh NHTM Việt Nam theo Hiệp ƣớc Basel 77 2.2.1 Thực trạng quản trị vốn NHTM Việt Nam theo Hiệp ước Basel……… .78 2.2.2 Thực trạng công tác tra, giám sát hoạt động tuân thủ quy định pháp luật hệ thống ngân hàng Việt Nam theo Hiệp ước Basel .102 2.2.3 Thực trạng vấn đề công bố thông tin thống kê theo nguyên tắc thị trường NHTM Việt Nam .112 2.3 Đánh giá chung hoạt động quản trị rủi ro kinh doanh NHTM Việt Nam theo Hiệp ƣớc Basel 118 2.3.1 Các kết đạt .118 2.3.2 Một số tồn nguyên nhân .123 CHƢƠNG 130 GIẢI PHÁP TĂNG CƢỜNG CÔNG TÁC QUẢN TRỊ RỦI RO TRONG KINH DOANH CỦA CÁC NHTM VIỆT NAM THEO HIỆP ƢỚC BASEL 130 3.1 Đánh giá khả áp dụng Hiệp ƣớc Basel công tác quản trị rủi ro NHTM Việt Nam .130 3.1.1 Sự cần thiết phải tăng cường công tác quản trị rủi ro kinh doanh NHTM Việt Nam theo Hiệp ước Basel 130 3.1.2 Định hướng chiến lược phát triển hội nhập ngành ngân hàng Việt Nam 133 3.1.3 Cơ hội thách thức việc áp dụng Hiệp ước Basel công tác quản trị rủi ro NHTM Việt Nam 137 3.2 Giải pháp tăng cƣờng công tác quản trị rủi ro kinh doanh NHTM Việt Nam theo Hiệp ƣớc Basel 146 3.2.1 Nhóm giải pháp Chính phủ NHNN 146 3.2.2 Nhóm giải pháp NHTM để đáp ứng nguyên tắc vốn tối thiểu………… 148 iii 3.2.3 Nhóm giải pháp đáp ứng chuẩn mực Basel quy trình rà sốt, tra giám sát hoạt động ngân hàng 154 3.2.4 Nhóm giải pháp nhằm đáp ứng nguyên tắc thị trường, công bố thông tin…………… 162 3.2.5 Nhóm giải pháp hỗ trợ NHTM để áp dụng thành công hệ thống chuẩn mực quản trị rủi ro theo Hiệp ước Basel 164 Kiến nghị điều kiện thực giải pháp tăng cƣờng công tác quản 3.3 trị rủi ro kinh doanh NHTM theo Hiệp ƣớc Basel 169 3.3.1 Về phía thân ngân hàng thương mại .169 3.3.2 Về phía Ngân hàng nhà nước .170 KẾT LUẬN 172 Danh mục tài liệu tham khảo Phụ lục iv DANH MỤC VIẾT TẮT TIẾNG VIỆT Chữ viết tắt Tiếng Việt ACB Ngân hàng TMCP Á Châu Agribank Ngân hàng Nông nghiệp Việt Nam BIDV Ngân hàng Đầu tư Phát triển Việt Nam CNTT Công nghệ thông tin HĐQT Hội đồng quản trị KSNB Kiểm soát nội Maritimebank Ngân hàng TMCP Hàng hải MHB Ngân hàng Phát triển nhà đồng sông Cửu Long NHNNVN Ngân hàng Nhà nước Việt Nam NHTM Ngân hàng thương mại NHTMCP Ngân hàng thương mại cổ phần NHTMNN Ngân hàng thương mại Nhà nước NHTW Ngân hàng trung ương Sacombank Ngân hàng TMCP Sài Gịn thương tín TCTD Tổ chức tín dụng TSC/TSN Tài sản có/Tài sản nợ VBSD Ngân hàng Chính sách xã hội Việt Nam Vietcombank Ngân hàng TMCP Ngoại thương Việt Nam Vietinbank Ngân hàng TMCP Công thương Việt Nam v DANH MỤC VIẾT TẮT TIẾNG ANH Chữ viết Tiếng Anh Tiếng Việt Advanced Measurement Phương pháp tiếp cận đo lường nâng Approach cao Association of South East Hiệp hội quốc gia Đông Nam Á tắt AMA ASEAN Asia Nations ASRF Asymptotic Single Risk Mơ hình giả định nhân tố rủi ro Factor CRE Commercial Real Estate Bất động sản thương mại BIA Basic Indicator Approach Phương pháp số BCBS Basel Committee on Banking Ủy Basel giám sát hoạt động Supervision ngân hàng Bank for International Ngân hàng toán quốc tế BIS Settlement CAR Capital Adequacy Ratio Tỷ lệ vốn tối thiểu CCF Credit Conversion Factor Hệ số quy đổi tín dụng CRC Credit Risk Capital Vốn rủi ro tín dụng EAD Exposure at Default Giá trị rủi ro người vay không trả nợ EL Expected Loss Tổn thất dự kiến FSI Financial Stability Institute Viện ổn định tài IRB Internal Rating-based Phương pháp đánh giá nội Approach KPI Key Performance Indexes Chỉ số đánh giá vi LCR Liquidity Coverage Ratio Tỷ lệ đảm bảo khoản MRC Market Risk Capital Vốn rủi ro thị trường NSFR Net Stable Funding Ratio Tỷ lệ nguồn vốn ổn định ORC Operational Risk Capital Vốn rủi ro tác nghiệp RAROC Risk Adjusted Return on Tỷ lệ sinh lời vốn điều chỉnh Capital theo rủi ro RRE Residential Real Estate Bất động sản cư trú RWA Risk-weighted Asset Tài sản có theo trọng số rủi ro SA Standardised Approach Phương pháp tiếp cận tiêu chuẩn UL Unexpected Loss Tổn thất dự kiến VAR Value At Risk Giá trị rủi ro WTO World Trade Organization Tổ chức thương mại giới (iii) Accounting standards; (iv) Human resources and professional team; (v) Soundness of coporate governance; (vi) Market discipline; (vii) The presence and level of reliability of the credit rating companies; (viii) Equality playing issues CHAPTER 2: SITUATION OF VIETNAMESE COMMERCIAL BANKS’ RISK MANAGEMENT IN BUSINESS 2.1 Overview of Vietnamese commercial banking system Vietnamese commercial banking systerm has formed and developed since 1990, now become an extensive network Operation mechanism: two levels in which the State Bank manages all aspects related to banking activities According to the State Bank’s data, until June 2011, there were 53 banks, including state banks, social policy bank, 37 private joint sotck commercial banks, joint venture banks, banks with 100% foreign owned, 48 foreign bank branches in Vietnam and 48 representative offices of foreign banks Until now, there has been of state banks equitized, including Vietcombank, Vietinbank and BIDV, but the Sate still owns the large shares Therefore, the author arranged three banks above into group of state commercial banks Among the financial institutions mentioned above, state commercial banks accounted for nearly 60% market share overall banking services with the dense network of branches, transaction offices, automated teller machines, credit card payment machines,… nationwide About the operational capacity of Vietnamese commercial banking system: - Capital raising: capital raising activities of credit institution system has increasing growth rate per month and the whole 2011, the capital raising growth rate was higher than credit growth rate Compared to passed years, the proportion of state banks’ capital raising have tended to decrease from about 10 80% in the early 2000s, to now only account for nearly 45% One of the causes of the decline in the market share is the rise of joint stock commercial bank system The joint-stock commercial banks create a relative competitive advantage by improving service quality, diversifing the types of products and services, improving the financial capacity and in particular to increasing interest rate higher - Credit plays an important role in the monetary circulation of the economy In pass ten years, Vietnam has an average credit growth rate in high group of the world, approximately 32%, higher than GDP growth rate of the same period - Total payment: total payment (M2) has increased continuously over months in accordance with changes in growth of credit and capital raising According to the banking operation report issued in December 2011 by the State Bank, total payment to the date of 21st December 2011 increased 9.27% compared to the end of 2010, with the target set by Resolution 11 was 15-16%, in which cash circulating outside the banking system rose 5.49% - Earning growth rate: the average earning growth rate in 2008 reached 26%, in 2009 reached 47%, in 2010 reached over 25% and in 2011 reached about 35% 2.2 The situation of Vietnamese commercial banks’ risk management in business according to Basel Accord In recent years, Vietnamese commercial banks have make attetion to risk management activities as part of business strategy in order to increase the level of operation safety and promote competitive advantage, by investing in technology to meet the standards of risk management A lot of banks has found solutions in risk management through the foreign consultant units such as McKinsey, Deloitte, Ernst&Young,… However, in general, risk management model of Vietnamese comercial banking system has not same sets, individual nature and not really effective 11 2.2.1 The situation of Vietnames commercial banks’ capital management under Basel Accord The rate of minimum capital adequacy (capital adequacy ratio) to ensure that banking operation was safe under the first pillar of Basel Accord is calculated as follows: CAR = (Tier capital + Tier capital)/ Risk weighted assets With this approach, to evaluate the situation of capital management in Vietnamese commercial banks compared with the Basel formula, Thesis evaluates, reviews each factor of formula above including equity capital and other risks affect to asset quality of commercial banks in Vietnam The State Bank of Vietnam has issued several documents providing the equity capital as 457/2005/QD-NHNN Decision which regulated on safety ratios in credit institutions’ operation, 13/TT-NHNN Circular which regulated on safety ratios in credit institutions’ operation, 19/TT-NHNN Circular, 22/2011/TT-NHNN Circular, 33/2011/TT-NHNN which modified some contents of Circular 13 - About the own capital situation: Group of state commercial banks: at the time of the year 2000, the bad debt situation was too high, might lead to the bankruptcy of the state commercial banks, the state commercial banks built Restructuring Program which is concentrated on improving finanical situation by increasing own capital scale and handling bad loans After funding by the Government, total equity of five banks increased to more than 18,000 billion VND in total equity of the entire Vietnamese commercial bank system was 35,000 billion VND (counted for 51%) Group of stock commercial banks: from 2000 until now, the joint-stock commercial banks has better performance and could increased capital themselves In addition, joint-stock commercial banks also constantly replenished their own capital through issuing shares, leading to rapidly 12 increasing equity over the years, contributing significantly enhance safety operational ratio of joint-stock commercial banks The capital of Vietnamese commercial banks at present has improved but is still lower a lot compared to the capital of an average foreign bank or financial group The charter capital is limitted will cause a lot of difficulties in supplying investment capital, particularly for large projects Moreover, Vietnam is in the integration process, especially Vietnam officially joined the World Trade Organization (WTO), the competiors which are foreign banks with a strong influx of capital, the capital scale of Vietnamese commercial banks certainly have to increase further to ensure either safety opreation ratio or business expansion ability, in order to meet the new requirements from the market - About the risk management: Credit risk: Among the business activities of comercial banks, credit is the primarily activity but high risk The efficiency achieved is not match the actual risk level has continued to be the reasons threat to the operation of commercial banks According to the report of the State Bank of Vietnam, total outstanding loans of banking system at 31st December 2011 was about 3.120.000 billion VND, in which the bad debt ratio is about 3.6% However, according to Fitch – one of three the most prestigious financial assessment institution in the world, the real debt quality of Vietnamese banks remain weak, the result of lax accounting standards compared to international IFRS standards If the loan was rigorously classified to IFRS standards, the banks’capacity to meet new capital requirements will become more difficult The commercial banks made a number of measures to control credit risk, such as: promulgating and reoranizing new documents to manage credit risk better; bulding and applying credit scoring system; classifying debt; risk provisioning; setting secure credit limit and the maximum credit limit for customers and strategic business factor Market risk: in the case of Vietnam, besides the provisions on foreign exchange transactions, Vietnam has not yet issued regulations on risk market as 13 stocks, futures, options contract and the derivative It is noted that Vietnam has not applied the Basel Accord’s principles on adjusting minimum capital adequacy ratio for market risk because market risk in Vietnam has not yet played a critical role in banking risk of credit institutions Besides, the experience and skills of banking supervision on market risk and derivative products are also limited Operational risk: the Vietnamese commercial banks are not aware of all types of operational risk, therefore, there is not a bank which has appropriate and redundant provision for this risk type However, it can be stated that operational risk for Vietnamese commercial banking system is now very high, especially when the fiancial currencies banking market is in the process of international economic integration Operational risk can be transferred directly to a serious loss, even in some cases to shake the entire financial and monetary system of the country Liquidty risk: Liquidity risk management activities in Vietnamese commercial banks are stills weak due to the objective and subjective reasons Currently, some banks have adopted capital transfer valuation tool FTP which helps to control interest rate risk and liquidity risk efficiently Bottom line: It can be seen that the Vietnamese commercial banks have made great efforts in raising equity capital and most stock commercial banks have achieved capital adequacy ratio (CAR) of 8%, but if compared to the calculation of the safety factor of Basel including market risk, there is very few commercial banks in Vietnam achieved the capital adequacy ratio above 8% 2.2.2 The situation of inspections, monitoring and compliance with legal provisions of Vietnam banking system according to Basel Accord Currently, the State Bank of Vietnam has set up an inspection and supervision organization structure fairly as distributed functional model The supervision function does not focus on one department It is scattered and taken by the different department of the Vietnam State Bank Supervisory method in banking is compliance inspections method This method is limited and not suitable with the currently development situation 14 In commercial banks: the monitoring system is applicated to the model: The control department belongs to Board of Director, internal inspection department belongs to Operation Board, internal audit department at branches equivalent as a department With the supervision system as above, commercial banks have increased the effectiveness of risk management in business However, until now, commercial banks have not issued any documents guiding the process of intrenal monitoring imlementation because the State Bank of Vietnam has not any documents stated functions, tasks, execution orders of inspection and supervision at commercial banks Inspection and supervision of commercial banking system in Vietnam is limited at present and has many problems need to be addressed, especially compared to the principles of Basel This is really a big challenge for Vietnam commercial banking system in the future 2.2.3 The situation of statistical information report problem according to market principles in the Vietnamese commercial banks Statistical information system of each Vietnamese commercial banks has to meet the needs of statistical report for State Bank of Vietnam, the General Department/Department of statistics to help these state management agencies perform their funtions under law provisions At the same time, it also meets the demand of statistical information for business management activities of banks To meet the incerasing demand of information for the state bank’s adiministration, gradually step by step in accordance with international practice, the state bank has issued documents regulated on reporting, lead to state bank’s statistic activity has made fundamental changes to meet the information requirement in the context of international integration In addition, the state bank also issued regulations on financial reporting regime for credit institutions, which regulated on the information collection about safety operation, independent audtiting and fiancial and operation information disclosure of credit institutions The banks also must build, issued statistic report indicators for internal business management For the group of foreign banks in Vietnam, statistical 15 information and accounting information are complete, allows a better management of financial risks Meanwhile, for Vietnamese commercial banks, the information quality is different Some banks perform ralatively well the statistical information Some banks this work not well Bottom line: statistical reporting activities at the commercial banks in Vietnam now has some restrictions on the legal framework, the completeness and accuracy of data provided transparency and information disclosure The main cause of the limitations is due to: the central bank has not established a system of regulations on the openness and transparency of information; The ICT usage by banks still face many difficulties and inconsistencies; The banks not really serious about serving quality statistical reports, and statistical staff is lacking in both quantity and quality 2.3 Overall assessment of risks management activities in business of Vietnamese commercial banks under the Basel Accord 2.3.1 The results obtained First, banks have to pay more attention to maintaining minimum capital adequacy ratio Second, banking supervision activities are also emphasized Third, the information disclosure under market principles has been made regularly and has been more transparency 2.3.2 Some weaknesses and causes - Organizational structure, functions and duties related to the risk management, inspection and information disclosure are not reasonable leading to overlap and not clearly demarcated responsibilities - The regulations, business policies and risk management are weak, limited and not synchronous - The staff are lack of experience - The technology is obsolete and outdated Causes: According to survey results in 21 Vietnamese commercial banks, 95.24% of banks are aware of the importance of risk management in banking business, 16 100% of banks make a lot of attention to the Basel Accord and 90.48% of banks assess that Basel Accord has an important role in strengthening financial security for Vietnam banking system However, the factors cause the most difficulties for the application of Basel in risk management of Vietnamese commercial banks are human resources, information technology infrastructure and law frame In addition, although commercial banks confirmed the role of risk management is very important, but they did not focus on investing in risk management capabilties as pronounced Specifically: 85.71% of banks refered expanding assets in banks’activities strategy; 71.43% of banks focused on the second objective is to increase equity in order to achieve higher asset growth speed Investing in concentrated information technology system, building data management ability are the most important activities but rank lowest strategic priorities Besides, there are also some reasons as follow: - The commercial banks’capital scale is small while the range of activities is large - The banks have not focused on the formulation of policies, procedures and regulations - Recruitment and training not meet job requirements - Some other objective reasons CHAPTER THE SOLUTIONS TO ENHANCE RISK MANAGEMENT IN THE BUSINESS OF VIETNAMESE COMMERCIAL BANKS UNDER THE BASEL ACCORD 3.1 Evaluating the applicability of Basel’s treaty to the Vietnamese Commercial Banks 3.1.1 The needs to strengthen risk management for businesses of the Vietnamese commercial banks under the Basel’s treaty The joining of Vietnam to the World Trade Organization (WTO) on 11/2006 marked the period of deeper integration of the Vietnamese Economy to 17 the World Economy With a commitment to open the financial market in the WTO’s negotiating process, foreign banks shall be active and treated equally with the domestic banks This causes a competitive pressure on the Vietnamese commercial banking system Like other countries’ banking system, the safeness, efficiency and sustainability are the goal that Vietnamese banks are aiming at Therefore, the application of international standards in risk management is necessary in order to improve the stability of the financial system and ensuring the Vietnamese banking system to active healthily 3.1.2 The oriented development strategies and integration of the Vietnamese banking sector By 2020, the Vietnamese banking system continues to create breakthroughs results, building a banking system that is stable and sustainable with the world average scale, ensuring the stability and safety of the financial market The motto of commercial banks is “Safety – Efficiency – Sustainability – International integration” In addition, banks also build a orientation to enhance risk management under the Basel’s treaty Specifically: - Enhancing the institution’s capability, restructuring organization models and actives in accordance to the international practice - Strengthening of financials capability - Enhancing the ability of information technology applications in transaction, processing and administration 3.1.3 Opportunities and challenges in applying the Basel’s treaty to the risk management of the Vietnamese commercial bank The international economic integration create incentives and opportunities for Vietnamese banks to evolved into a banking system that is dynamic, safe, effective and consistent with international practice This also create a driving force to reform and evolve for the Vietnamese banking system, especially improving management, improving the legal 18 environment in the banking sector, closing the gap between the Vietnamese currency market and the international practice, to meet the international integration and commitment with international organization The more intelligible law will help facilitate better assessment for borrower, lenders including banks will charge lower risk fee In addition, there is also a more active participation of foreign banks in Vietnam This is one of the main reason promoting Vietnamese commercial banks to improve its professionalization in banking, banking management, asset management , risk management, improving credit quality, enhancing the efficiency of capital used and the development of new banking services In addition, Vietnamese commercial banks will face many challenges from economic integration and for the banking sectors like institutional challenges, structural, financial capacity, and human resources The international economic integration increases capital transactions and the risk of banking system, while management and information system to monitor banks is still in its infancy, is not consistent with the international practice Economic integration also leads to transformation of high quality human resources: foreign banks are willing to legally recruit skilled manpower with an attractive incentive that Vietnamese banks will not be able to offer 3.2 Solutions to improve risk management for Vietnamese commercial banks under Basel’s treaty 3.2.1 Solution for the Government and central bank Although the International Monetary Fund (IMF) and the World Bank (WB) were widely announced their desire to support countries to prepare for decision whether, when and how to implement Basel II However, both institutions emphasis that at the national level, Basel I remains a viable option in the near future, while Basel II should be based on a solid foundation of standards accounting and management, practices of pricing, classification and provisioning possible risks, the legal framework and resources adequate supervision When the factors are yet to convergence, countries want to apply Basel II to improve its financial infrastructure as part of Basel II implementation 19 roadmap In this orientation, the work that the Government and the central bank can in the early stages in the formation of a risk monitoring framework include: Finance infrastructure upgrades Improving the quality of credit information center Training and development of a new surveillance culture The Central Bank is the licensing agency for all banking activities and observance of policies and laws on monetary and banking activities in the territory of Vietnam 3.2.2 Solutions for banks to meet minimum capital rules - Continue to issue shares to increase its own capital - Merger of commercial banks to increase the size of own capital - Enhance business efficiency, equity supplement free - Consistently apply international standards in credit risk management, market risk and operational risk 3.2.3 Solutions to meet the Basel standards on the process review and supervision of banking activities 3.2.3.1 For State Bank: - Renewing the organizational model of inspection agencies, banking supervision - Renewing the form and content inspection activities, banking supervision - To improve the infrastructure to support the inspection and supervision of banks - Renew licenses and operate a system of safety regulations of banking activities 20 - Strengthening international cooperation in banking supervision activities and cooperation between banking supervision with the financial supervisory authorities in the country, the law-enforcement agencies in the country 3.2.3.2 For commercial banks: - Develop banking management model as the best international practices - Change the supervisory process - Construction and application of effective reward and punishment mechanism 3.2.4 Solutions to meet the market principles, information disclosure 3.2.4.1 For State Bank: - Solutions to improve the efficiency of statistical information - Applying the public policy and transparency of information - Applying a fine mechanism/ discipline cases reported incorrect information in accordance with regulations 3.2.4.2 For Commercial Bank: - Organize statistical report implement at commercial banks - Develop centralization data base 3.2.5 Solutions for banks to support the successful application of systems of risk management standards under the Basel Accord - Training staff - Defining the functions, tasks and role of risk management at all levels in Vietnamese commercial banks - Technological information innovation in banks - To study and implement selective principles of Risk Management issued by the Basel Committee 21 3.3 Recommendations conditions to implement solutions to enhance risk management in business of commercial banks under the Basel Accord The thesis proposes a number of recommendations to the central bank and commercial banks to implement the solution enhance risk management in the business of commercial banks under the Basel Accord On the part of commercial banks: Banks should achieve the level of certain risk management, invest more in infrastructures, particularly the appropriate information technology to meet international standards, to apply the good practices on corporate governance and the rule to set and operate systems of internal control and risk management (credit, market, liquidity and operational) The bank must establish a professional system of internal risk management consistent with best practice and meet the minimum requirements of the banking supervisory authorities to detect, measure, manage and monitor appropriate types of risks in banking activities The banks need to recruit and train human resources in sufficient quantity and quality to operate the risk management system, particularly for market, credit and operational risk management systems as risk modeling On the part of the State banks: State Bank must be competent to prescribe and use prudential regulations (quantitative and qualitative) to control the risks in banking activities The safety regulations are not a substitute for management decisions of the bank, but rather the prudent minimum standards to ensure that banks conduct activities reasonable Banking supervisory authorities need to have good coordination with other agencies and other financial supervision in the country and abroad to monitor the non-banking finance activities and international banking operations Prerequisites for an efficient banking supervision system is: the appropriate institutional and legal framework of banking supervision; healthy and sustainable macroeconomic policies; appropriate public infrastructure; effective market discipline; clearly procedure for resolving banking problems 22 Conditions and the readiness to apply the Basel Accord depends on several factors such as: current status of risk management system of banks; expected cost/benefi, and the pressure level of the central bank According to the point of central bank, the factors will be considered when preparing the new treaty including: The national priorities; The availability of legal framework and management; The accounting standards; human resources and expert staff; Discipline market presence and level of reliability of the credit rating companies CONCLUSION The Basel Accord with standardized content of credit risk, market risk and operational risk management is considered a turning point in the process of reforming the global risk management Due to the benefit of this accord, the Basel Accord in general and Basel II in particular has become global standards on risk management According to the investigation of the Basel Committee on Banking Supervision, there has nearly 100 national banks of countries outside the G-10 state of intent to implement the Basel Accord in the domestic commercial bank system’s operational framework It can not be denied that the bank managers of developing countries are under pressure to move in the direction of Basel II, Basel III It is the fact that as other banking systems, the goal of Vietnam's banking system is safe, effective and sustainable Furthermore, in comparison with international practice, the level of risk in credit activities of commercial banks in Vietnam, especially in the state banks is quite high and difficult to anticipate the consequences Therefore, the analysis and application of the Basel standards is not only essential to ensure the safe operation of commercial banks in Vietnam but also is the safety of the entire economy in the context of international economic integration With these strict standards, Basel in general and Basel II in particular creates real challenges in the implementation, even for the modern banks in the world So, it is not surprise the application of the Basel experiences major 23 barriers in the banking systems of developing countries, including Vietnam, requires the cooperation and consensus of many related departments By combining the methods of analysis, synthesis, statistics, comparisons, based on the basic criteria of the banking monitoring committee BIS and practices of Vietnamese commercial banks, thesis “Risk management in business of Vietnamese Commercial Banks under the Basel Accord” has completed the following contents: Systematize the theory of risk management standards under the Basel Accord; outlines the basic content of the Basel I, Basel II and Basel III, comparing differences and conditions to apply the Basel standards; Analysis the situtation of Vietnamese commercial banks’ operation under the current Basel standards, with the opportunities and challenges of Vietnam commercial banking system in the process of international economic integration Proposes solutions and recommendations to Vietnamese commercial banks to access and apply the standards of risk management in banking activities under the Basel Accord Solutions and recommendations of the thesis is based on banking sector’s development strategies by 2020 and trend of regional and global economic integration However, successful application of the Basel standards, particularly Basel II, in Vietnam commercial banking system is a major problem, which requires time and coordination of multiple related departments Therefore, solutions and recommendations of the thesis is an initial contribution to the process of applying the standards of risk management in banks’operation under the Basel in Vietnamese commercial banks 24