The Canadian International Development Agency (CIDA) and the State Bank of Vietnam will finance local commercial banks in building up an international-standard risk management network.

The Saigon Thuong Tin Commercial Bank (Sacombank) is the first of two Vietnamese commercial banks that will receive the finance.

The network is part of a co-operative project between CIDA and the State Bank of Vietnam aimed at overseeing risks in banking operations that will then be applied to all commercial banks in Vietnam.

The risk management network is expected to be implemented at Sacombank by late 2007 or early 2008.

Sacombank has a statutory capital of nearly VND1.9 trillion, which is the largest amount among commercial banks in Vietnam. It has developed 127 transaction points nationwide.