Phạm Văn Phong, permanent deputy chairman of Sacombank, speaks about the importance of the Credit Risk Model that is being adopted by the lender. — Photo Courtesy of SacombankViet Nam News HCM CITY — Sacombank has begun installing a Credit Risk Model, which will help measure the risk of business portfolios for formulating business strategies, managing credit portfolios and portfolio limits, and classifying assets based on risk levels. It will also help the bank evaluate lending limits based on risk analysis of customer segments and product portfolio, develop new products, assess the level of expected risks and losses to determine the level of retained capital needed to ensure safe operation, and improve and optimise the process of lending. Through this and a project to complete the risk management database framework launched on July 25, Sacombank is accelerating the process of completing the Standardised Approach and adopting the Internal Rating Based Approach … [Read more...] about Sacombank adopts credit risk measurement model
Credit risk analysis
Myanmar risks falling into a China debt trap
To understand China’s top priority in Myanmar, forget Beijing’s involvement in the country’s sputtering peace process, or efforts to restart its backed but now suspended US$3.9 billion Myitsone hydroelectric dam, or even securing rights to extract copper at the locally resisted Letpadaung mine outside of Mandalay. Those are all subordinate interests to what China really wants in Myanmar: economic and strategic access to the Indian Ocean through a deep-water port at Kyaukpyu in Myanmar’s western Rakhine state, a crucial link in Beijing’s US$1 trillion Belt and Road Initiative (BRI). The dailyReport Must-reads from across Asia - directly to your inbox But as China’s intentions come into clearer view, concerns are rising about the terms of the US$10-billion project, with top government economic advisor Sean Turnell recently saying the US$7.5-billion price tag on the project’s port component was “crazy” and “absurd.” … [Read more...] about Myanmar risks falling into a China debt trap
Report reveals cities most at risk from climate change
The picturesque Florida cities of Miami Beach and Sarasota carry high investment-grade credit ratings and are popular travel destinations. They’re also two of the most exposed U.S cities to climate change in the country, according to a new analysis by advisory firm Four Twenty Seven. The Berkeley, California-based firm has developed an index surveying 761 cities’ and 3,143 counties’ exposure to sea level rise, water stress, heat stress, cyclones and extreme rainfall based on analysis of changes between current and future conditions. It found that communities in Florida are the most susceptible to climate change risks, with Miami Beach being the most exposed city and Manatee County being the most-exposed county. The data will help investors, ratings companies and local governments better evaluate the issue, said Frank Freitas, chief development officer at Four Twenty Seven. “We’re hoping that municipalities and investors can engage in conversations that see … [Read more...] about Report reveals cities most at risk from climate change
HDFC Medium Term Opportunities Fund: Conservative on risk, high on returns
Launched in June 2010, HDFC Medium Term Opportunities Fund features in the debt short fund category of CRISIL Mutual Fund Ranking. The fund has been constantly ranked in the top 30 percentile (CRISIL Fund Rank 1 or 2) in the 12 quarters ended December 2017. Its month-end assets under management (AUM) more than tripled from Rs 34.12 billion in April 2015 to Rs 114.33 billion in March 2018. Anupam Joshi has been managing the fund since October 2015. The investment objective of the fund is to generate regular income through investments in debt/money market Instruments and government securities (G-secs) with maturities not exceeding 60 months. Superior performance The fund has consistently outperformed its benchmark (CRISIL Composite Bond Fund Index) over the trailing periods under analysis. It has significantly outperformed the benchmark during the past six months and one year in spite of fall in prices of securities with rise in bond yields during this period. Timely decline in … [Read more...] about HDFC Medium Term Opportunities Fund: Conservative on risk, high on returns
Divergent outlooks trail N633bn credit surge to private sector
By Babajide Komolafe THE N633 billion upsurge in credit to the private sector in February has been greeted with divergent outlooks for the overall growth in credit to the sector in 2018, with some analysts urging caution while others project continued growth. Citing the consolidation of the country’s exit from economic recession, reduced domestic borrowing by the federal government and declining yield on government securities as well as the need for banks’ to sustain profitability, some analysts have projected up to 10 percent growth in flow of credit to the private sector in 2018. Others were, however, less optimistic, stressing that while the above factors are expected to trigger growth in credit to the private sector, the growth may not be as significant as expected, except there is increased momentum in the economy. Financial Vanguard analysis of the Depository Corporation survey reports by the Central Bank of Nigeria (CBN) for … [Read more...] about Divergent outlooks trail N633bn credit surge to private sector