On July 31, 2018, Sacombank launched a project called “Credit Risk Modeling” (CM) in cooperation with PricewaterhouseCoopers Consulting (PwC) and CMC Saigon System Integration Limited Company (CMC SISG).

Through the implementation of this project with “Completing the risk management database framework” project launched on July 25, 2018, Sacombank is speeding up the process of completing the Standard Approach (SA) and progress towards Basel II (Internal Rating Based Approach – IRB).

Accordingly, Sacombank will build credit risk quantification models such as: A – Card (Application Scorecard), B – Card (Behavioral Scorecard) for individual customers; Probability of Default (PD) model for businesses; EAD (Exposure At Default) and LGD (Loss Given Default) estimation models.


These will make a better improvement for Sacombank in:

  • Assessing the risks of business portfolios to plan business strategies, manage credit portfolios, manage portfolio limits, classify assets in accordance with risk appetite in order to balance management risk and expected return;
  • Loan pricing based on risk based on customer segmentation and product portfolio that helps the Bank to develop new products;
  • Determining risks and losses for the entire business portfolio to determine the required maintenance capital to contribute to the safe operation;
  • Improve and optimize credit granting process to improve the service time and increase customer satisfaction.


Mr. Pham Van Phong – Vice Chairman of Sacombank’s Board of Directors said: “Implementing Basel II is not only to meet the expectations assigned by the State Bank, but to improve the management system of Sacombank itself. We will spend the maximum resources to accomplish this goal”.

According to Mr. Grant Dennis – General Director of PwC Vietnam Consulting Co., Ltd.: “Credit risk quantification is the current major trend in the world. To Sacombank, this model not only helps improve business processes and manage risk, but also optimizes customer care. PwC is committed to bringing the most experienced professionals in the region to work with Sacombank to make the project successful”.

Ms. Tran Thi Phuong Hong – CMC SISG Vice General Director is presenting

“To my opinion, the most important thing for a successful project is the understanding, sharing and coordination among the parties; in which Sacombank senior management plays a key role. For CMC SISG, we are committed to devoting the best and stable resources to cooperate with Sacombank not only during project implementation but continue our support after the project is finished ”– Ms. Tran Thi Phuong Hong – Deputy General Director of CMC SISG shared.

Although the portfolio structure of banks in Vietnam in general and Sacombank in particular is gradually shifting towards to services such as international payment, e-banking, cards, etc and reducing reliance on credit. Credit is still the main source of revenue so far. This means when credit activities are well run will contribute greatly to the sustainability and efficiency of the bank. Sacombank, with its long-term development strategy, has made steady strides in building credit management framework using to Basel II standards and other best practices in the market. With Credit Risk Modeling Project, Sacombank has taken a long step toward completing Basel II.

(VietStock, August 01 2018)

Category: General news, Press talk about CMC TSSG