Issues of concern for deploying basel II in credit risk management in Vietnamese commercial banks

Abstract

One problems with Vietnam’s banking system is the credit risk that leads to bad debt due to limited management, lack of professional, luculent absence and inadequateness in information. Therefore, in order to be effective in management credit risk, banks need to develop a management model according to international standard. The Basel principles on credit risk management are the foundation for the model of credit risk management in Vietnam’s commercial banks. As Vietnamese economy has been integrating into the world economy more deeply, commercial banks in Vietnam need to promote the analysis and timely application of Basel II standards for banking risk management in general and credit risk management in particular. This article mentioned the Basel II credit risk management requirements, assess the reality of credit risk management in the 10 pilot banks deploy Basel II, and provides some recommendations to promote deploying basel II in credit risk management in Vietnamese commercial banks.