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05 credit rating criteria of people’s credit funds in Vietnam according to Circular No. 42/2016/TT-NHNN

11:59, 06/02/2017

On December 30, 2016, the State Bank of Vietnam issued Circular No. 42/2016/TT-NHNN prescribing the credit rating of people’s credit funds.

According to Circular No. 42/2016/TT-NHNN of the State Bank of Vietnam (SBV), the total score of credit rating criteria is 100 points and is the sum of the following component scores:

- Capital: 10 points.

- Asset quality: 30 points.

- Management, administration and control: 30 points.

- Business efficiency: 10 points.

- Solvency: 20 points.

Also according to Circular No. 42/2016/TT-NHNN, figures and data used for evaluation and calculation of credit rating scores are specified as follows:

- Figures used for scoring of capital, asset quality and business efficiency criteria are those released on December 31 of the credit rating year;

- Scores of maintenance of capital adequacy ratio, management, administration and control, and solvency shall be calculated according to periodical inspection reports in the fiscal year.

View more details at Circular No. 42/2016/TT-NHNN of the State Bank of Vietnam, effective from May 01, 2017.

- Thanh Lam -

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