nternal Capital Adequacy Assessment Process - International experiences and lessons for banking industry in Vietnam

Abstract

In the recent trend of globalization of economic activities, aiming to build credibility,
strengthening competitiveness and maximizing business efficiency, Vietnam banking operations shall
be met in conformity with international standards regulatory. This has been clearly demonstrated
in Circular No. 41/2016/TT-NHNN dated December 30th, 2016 of the State Bank of Vietnam
Governor stipulating the capital adequacy ratio for the commercial banks and the foreign banks’
branches in line with the Pillar 1 of Basel II Framework; Circular No. 13/2018/TT-NHNN dated May
18th, 2018 of the State Bank of Vietnam on internal control systems of commercial banks and foreign
banks branches, including ICAAP in the Pillar 2 of Basel II Framework. This paper outlines main
findings on ICAAP implementations in some developed countries in the world and in Vietnam as well,
then summarizes experiences learned from that by using some research methods included analysis,
statistics, synthesis, induction, deduction, comparing….