Vietnam: For what purposes do credit institutions collect and use customers’ data and information?

19:09, 24/01/2013

Recently, the Governor of the State Bank of Vietnam has issued Circular No. 02/2013/TT-NHNN providing on classification of assets, levels and method of setting up of risk provisions, and use of provisions against credit risks in the banking activity of credit institutions, foreign banks’ branches.

According to Article 4 of Circular No. 02/2013/TT-NHNN of the State Bank of Vietnam, credit institutions, foreign banks’ branches must have measures and regularly implement collection, use of customers’ information, data, including information from the Credit Information Center (CIC), for:

thu thap khai thac thong tin khach hang, Thong tu 02/2013/TT-NHNN

- Amending and supplementing the internal credit ranking system, internal regulations on credit extension, loan management, policy on risk provisions.

- Following up, assessing the capability of customers to pay debts after having ranked under the internal credit ranking system, had proper measures to control risks, manage credit quality.

- Implementing classification of debts, off-balance sheet commitments, setting up risk provisions and using provisions as prescribed in this Circular.

Also according to Circular No. 02/2013/TT-NHNN, credit institutions, foreign banks’ branches must formulate an information technology system in their whole system for meeting requirements on management of customers’ data, information, operation and management of internal credit ranking system, risk management, classification of debts, off-balance sheet commitments, setting up and use of provisions in order to deal with risks.

View full text at Circular No. 02/2013/TT-NHNN of the State Bank of Vietnam, effective from June 01, 2014.

Thu Ba

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