Ho Chi Minh City, Vietnam, April 24,
2009—IFC, a member of the World Bank Group, is helping banks in the
East Asia and Pacific region improve their risk management by reviewing
their business strategies and promoting good governance practices in response
to the current global economic crisis.
At a one-day seminar organized today by IFC, senior management from regional
and global banks, financial institutions, and sector advisors shared
their experiences on such topics as capital adequacy, asset-liability management,
and operational, market, and credit risk. The seminar also covered risk-measurement
methodologies that illustrated how best to assess vulnerabilities and identify
and prioritize issues so that banks can be prepared to deal with the effects
of the global crisis on local markets.
“Banks and financial institutions are constantly faced with risks – mostly
financial – and must balance such risks as well as returns,” said Ho
Huu Hanh, Director of the Ho Chi Minh City branch of State Bank of Vietnam.
“The current economic downturn increases the critical urgency of risk
management. We appreciate IFC’s efforts in organizing this seminar, and
the opportunity it provides for senior management across the region to
share experience and advice.”
IFC also works with banks to help them diversify and focus their strategies,
thereby improving the product range available to the private sector, particularly
micro, small and medium enterprises (MSMEs). Improvements to internal procedures
can result in more profitable MSMEs and retail banking for the individual
institutions. Better understanding of client needs also helps banks reduce
risk and improve portfolio quality and access to finance for MSMEs.
“The need for improving risk management has become much more eminent,”
said Serge Devieux, IFC Senior Manager for Financial Markets. “Buoyant
markets and complacency diverted attention from predictable cyclical corrections
and their devastating impacts. We must re-think the way we do business
and manage risks. There is a great call for instilling a risk culture as
a top priority.”
IFC advises governments, private companies, and industry sectors on how
to grow businesses sustainably and create a healthy investment climate.
In Vietnam, IFC advisory services are delivered in partnership with Australia,
Canada, Finland, Ireland, Japan, New Zealand, the Netherlands, Norway,
Sweden, and Switzerland. For more information, visit www.ifc.org/mekong.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.