On March 18th, 2022, at Co-opBank’s head office, STEP project experts had a meeting with representatives of Co-opBank’s management board to report the results of PCFs’ risk monitoring framework. This is an activity under the risk management component of “Strengthening the PCFs Network” (STEP) funded by the Global Affairs Department Canada (GAC), jointly implemented by the International Development Desjardins (DID) and Co-opBank.
From November 2020, the PCFs Report Management System (PRMS) were officially launched to fully replace the CF-eMIS system. The PRMS system is designed to produce 22 output reports using data from the reports that the PCFs submitted to SBV as required by Official Letter 2947/NHNN-DBTK. These reports are divided into 5 groups, including: key performance indicators, credit, capital mobilization, capital intermediation and regulatory compliance. In order to fully utilize the PRMS system’s data warehouse, STEP project experts have collaborated with Co-opBank’s relevant departments and committees to study and design a PCF risk monitoring framework to create early warning system and support Co-opBank in supervising the PCFs network.
.
Overview of the PCFs risk monitoring framework meeting
The risk monitoring framework is built based on a set of risk indicators and scoring methods with 04 main risk groups: long-term payment risk, credit risk, liquidity risk and operational risk with different scoring ratios based on which PCFs are then grouped from safe to very high risk. The PCFs risk monitoring framework is designed to serve different purposes from junior staff to high-level management. The data is visualized in graphs, charts to demonstrate an overview of the risk level of PCFs at each level: transactions, branches, region and total asset volume…
STEP project expert presented the PCFs Risk Monitoring Framework
Besides that, after having the general context of PCFs network risk level through the Dashboard, users can further investigate into PCFs’ operation using 03 reports: PCFs’ monitoring internal risks; Types of risk; Detailed monitoring of PCF’s risk indicators to find out the causes and evaluate the level of violations to give warnings to Co-opBank’s management board for timely solutions.
Co-opBank’s management board set high expectation for the PCFs risk scoring and the risk monitoring framework developed by the STEP project and Co-opBank. This toolkit is believed to support Co-opBank in lending and monitoring the PCF system efficiently and conveniently. It will be the basis for Co-opBank to develop credit policies to PCFs. STEP project will look for contractors to help design the toolkit’s automation and dashboard.
