Vietnam: The Director General of a commercial bank must establish the Risk Committee, ALCO and Capital Management Committee

11:50, 17/07/2018

This is a content specified in Circular No. 13/2018/TT-NHNN of the State Bank of Vietnam on internal control systems of commercial banks and foreign banks’ branches.

According to Circular No. 13/2018/TT-NHNN of the State Bank of Vietnam, the Director General (Director) must establish the Risk Committee, ALCO and Capital Management Committee. In order to manage and supervise effectively, the organizational structure of the above Committees is prescribed as follows:

- The Risk Committee: The chairman is a member of headquarters' management (not the Director General (Director)) who specializes in risk management, has experience, knowledge and professional capacity in risk management and the other members belong to related departments specified in the commercial bank’s internal regulations;

- The ALCO: The chairman is the Director General (Director) or a member of headquarters' management and the other members belong to related departments specified in the commercial bank’s internal regulations;

- The capital management committee: The chairman is the Director General (Director) or a person in headquarters' management who specializes in finance, has experience, knowledge and professional capacity in finance and accounting, and the other members belong to related departments specified in the commercial bank’s internal regulations.

View relevant provisions at Circular No. 13/2018/TT-NHNN of the State Bank of Vietnam, effective from January 01, 2019.

- Thanh Lam -

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