Qualitative Criteria Group for Evaluating Credit Institutions and Branches of Foreign Banks

18:16, 10/07/2024

Circular 52/2018/TT-NHNN was signed and promulgated by the State Bank of Vietnam, stipulating the ranking of credit institutions and foreign bank branches.

Criteria for asset quality of credit institutions, branches of foreign banks are assessed and scored based on quantitative indicators and qualitative indicators. Details of the qualitative indicators group are as follows:

- Compliance with legal regulations on lending activities;- Compliance with legal regulations on issuance, review, amendment, supplementation, and reporting of internal regulations on credit granting, loan management, and risk provision policies;- Compliance with legal regulations on the internal credit rating system;- Compliance with legal regulations on asset classification, provisioning levels, provisioning methods, and the use of provisions to handle risks in the operations of credit institutions, branches of foreign banks;- Compliance with legal regulations on provisioning and using provisions for financial investment losses and bad debts;- Compliance with legal regulations on provisioning and using risk provisions for special bonds issued by the Vietnam Credit Institution Asset Management Company;- Compliance with legal regulations on credit limitation and credit granting restrictions;- Compliance with legal regulations on credit risk management.

See the criteria for management and governance at Circular 52/2018/TT-NHNN, effective from April 1, 2019.

- Thanh Lam -

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