Threshold Score for Each Quantitative Criterion of Credit Institution in Vietnam

18:15, 10/07/2024

This is an important provision stipulated in Circular 52/2018/TT-NHNN regulating the ranking of credit institutions and foreign bank branches in Vietnam.

According to Circular 52/2018/TT-NHNN, thresholds 1, 2, 3, and 4 for each quantitative criterion by peer group in Vietnam are specifically determined as follows:

No.	Criteria/Indicator	Unit	Threshold
		Unit		Threshold 1	Threshold 2	Threshold 3	Threshold 4
1	CAPITAL (C)
1.1	Capital adequacy ratio	%	The larger the quantitative index value, the lower the risk level
	Large-scale commercial bank		15.00	12.00	8.00	5.00
	Small-scale commercial bank		15.00	12.00	8.00	5.00
	Foreign bank branches		15.00	12.00	8.00	5.00
	Finance companies		20.00	16.00	9.00	6.00
	Financial leasing companies		20.00	16.00	9.00	6.00
	Cooperative banks		15.00	12.00	9.00	5.00
1.2	First-tier capital adequacy ratio	%	The larger the quantitative index value, the lower the risk level
	Large-scale commercial bank		12.00	10.00	7.00	4.00
	Small-scale commercial bank		12.00	10.00	7.00	4.00
	Foreign bank branches		12.00	10.00	7.00	4.00
	Finance companies		19.00	15.00	8.00	5.00
	Financial leasing companies		19.00	15.00	8.00	5.00
	Cooperative banks		12.00	10.00	7.00	4.00
2	ASSET QUALITY (A)
2.1	Ratio of bad debts, bad debts sold to VAMC not yet resolved, and restructured debts potentially becoming bad debts to total debts plus bad debts sold to VAMC not yet resolved	%	The larger the quantitative index value, the higher the risk level
	Large-scale commercial bank		1.00	1.50	3.00	5.00
	Small-scale commercial bank		1.00	2.00	3.00	5.00
…	…		…	…	…	…

Circular 52/2018/TT-NHNN is effective from April 01, 2019.

- Thanh Lam -

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