MATCHING TARGETS SAFETY MONITORING UNDER BASEL III AND CURRENT LEGAL DOCUMENTS IN VIETNAM

Abstract

The research will briefly introduce the new points of Basel III and also present the basic differences in the calculation of the index of Capital Adequacy Ratio (CAR) in Basel III and in Vietnam. Based on the analytical results, the authors will give some recommendations and solutions to help Vietnamese banks quickly achieve the requirements of international standards. Basel Committee on Banking Supervision (Basel Committee on Banking Supervision - BCBS) has introduced Basel III agreement; and in Vietnam, a series of new circulars and decrees have been issued in order to improve the quality and the depth of capital, liquidity management with aim to improve the ability to manage the potential risks of banks... So what are the new points of Basel III? Whether does the calculation of CAR in
Vietnam comply with Basel III? The research will answer the above questions, and based on the analytical results, the authors will give some recommendations and solutions.
Keywords: CAR, monitoring indicators, banking supervision, the Basel Committee