Credit risk management framework following Basel’sPrinciples at commercial banks in Vietnam

Abstract

International Integration has opened up a lot of opportunities and challenges to the whole system of commercial banks
in Vietnam. One of the challenges is to improve the management process following international standards. Starting from
2005, State Bank of Vietnam has issued documents to instruct commercial banks in Vietnam to operate under the Basel’s
standards to improve and to advance in risk management capability in their business operations. The article provides
insights into the organization managementframework focusing on risk management – one of the bank management
theories under the direction of Basel Committee. With that, it aims to provide information about the improving process
of risk management framework in the environment of commercial banks in Vietnam.