Nghiem Xuan Thanh, chairman of Vietcombank, received Leadership Achievement Award for Best COVID-19 Response in Vietnam from The Asian Banker. Vietcombank was also awarded Best Managed Bank during COVID-19 in Vietnam.
Nghiem led Vietcombank to ensure business continuity and safety of customers and staff amid the COVID-19 pandemic
Under his leadership, the bank maintained continuous operations to provide essential banking services to customers while strictly following health and safety measures. Meanwhile, the bank actively took part in social welfare activities and joined the whole country in the fight against the pandemic.
The digitalisation of processes and strong infrastructure allowed customers to enjoy banking services while ensuring quality and security of the network during the pandemic where face to face banking is discouraged. The bank also continued to provide better online payment products and develop unique products to meet customers’ needs. An initiative was launched in July 2020 to unify internet and mobile banking and enhance customer experience.
Vietcombank extended support packages to customers experiencing difficulties
In response to the pandemic and the needs of customers, the bank diverted resources to implement multiple measures including lowering lending rates, restructuring, and creating more loans as well as waiving interest payments and exemptions. Meanwhile, it launched preferential lending interest rate programmes for new loans.
As of June 2020, the bank supported more than 6,300 corporate customers and 224,000 individuals and small and medium size enterprises (SMEs) by reducing interest by $16 billion and $11.7 billion, respectively.
Various steps have been taken to reduce liquidity risk
To deal with liquidity risk during the pandemic, the bank developed a comprehensive liquidity risk management framework in accordance with international standards. It actively monitored the fluctuation of funding situation, reviewed the contingency plan, strengthened the supervision of business activities and limited long-term deposit. As a result, the bank’s liquidity ratios have been maintained at a healthy level and complied with standards set by the State Bank of Vietnam.
For video of the Leadership Dialogue and Leadership Achievement Awards Virtual Ceremony, please click here.
About Leadership Achievement during COVID-19 Awards
The Asian Banker conducts the annual Leadership Achievement Awards programme that focuses on the performance of CEOs/chairmen and boards in the financial services industry in Asia Pacific, the Middle East, and Africa. This year, the awards are specifically aimed at evaluating the performance and response of CEOs/chairmen and the banks that they lead during the COVID-19 pandemic as well as the initiatives implemented to help customers and society at large through the crisis. Shortlisted candidates and institutions were evaluated on the level of digitalisation of operations and processes, risk management capabilities especially around credit and liquidity risk management, how they deploy their own funds in a manner relevant to the societies they serve, and how they create social capital, the means by which they justify their value through the contributions to the communities they serve.