Guidelines on the Rating of Credit Institutions and Foreign Bank Branches

According to the provisions of Circular 52/2018/TT-NHNN, credit institutions and foreign bank branches are classified as follows:

- Credit institutions and foreign bank branches are classified as Grade A (Good) if the Total Score is greater than or equal to 4.5.- Credit institutions and foreign bank branches are classified as Grade B (Fair) if the Total Score is less than 4.5 and greater than or equal to 3.5.- Credit institutions and foreign bank branches are classified as Grade C (Average) if the Total Score is less than 3.5 and greater than or equal to 2.5.- Credit institutions and foreign bank branches are classified as Grade D (Weak) if the Total Score is less than 2.5 and greater than or equal to 1.5.- Credit institutions and foreign bank branches are classified as Grade E (Very Weak) if the Total Score is less than 1.5.- In addition to the provisions stated in Clause 4, Article 20 of Circular 52/2018/TT-NHNN, credit institutions and foreign bank branches are classified as Grade D if they fall into one of the cases in Points a, b Clause 1 of Article 130a of the Law on Credit Institutions.- In addition to the provisions stated in Clause 5, Article 20 of Circular 52/2018/TT-NHNN, credit institutions and foreign bank branches are classified as Grade E if they fall into one of the cases in Points a, b, c Clause 1 of Article 145 of the Law on Credit Institutions and have not been placed under special control by the SBV.

More details can be found in Circular 52/2018/TT-NHNN effective from April 1, 2019.

- Thanh Lam -

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