SBV to rate credit institutions as of 2019
VOV.VN - The State Bank of Vietnam begins to rate credit institutions and foreign bank branches from 2019 onward under its newly-issued Circular No. 52/2018/TT-NHNN, as reported by vneconomy.vn.
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| State Bank of Vietnam headquarters in Hanoi. |
The rankings are aimed at giving a full assessment of the operations and risks of credit institutions and foreign bank branches as well as their compliance with relevant legal regulations.
Credit institutions and foreign bank branches are then divided into different groups.
Group 1 includes large-scale commercial banks with a quarterly average asset value exceeding VND100 trillion (US$4.37 billion). Meanwhile, small sized commercial banks with a quarterly average asset value equal to or lower than VND100 trillion are listed among Group 2.
Meanwhile, Group 3 comprises of foreign bank branches and Group 4 is made up of financial companies. Financial leasing companies along with co-operative banks are named in Group 5 and Group 6, respectively.
Quantitative and qualitative indicators have been set to review the operations of credit institutions and foreign bank branches as well as their adherence to rules.
Based on their scores across the indicators, credit institutions and foreign bank branches are classified into one of the five categories, including Good (A), Fair (B), Medium (C), Poor (D), or Very Poor (E).
The annual rankings are scheduled to be approved by the SBV Governor prior to June 30.
The circular will take effect from April 1, 2019, replacing the SBV Governor’s Decision No. 06/2008/QD-NHNN previously issued on March 12, 2008 which had communicated the classification of joint-stock commercial banks.
