Legal Counselling

Vietnam: Guidelines for credit rating of people’s credit funds according to solvency

11:49, 06/02/2017

This is an important content specified in Circular No. 42/2016/TT-NHNN of the State Bank of Vietnam 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 maximum score and minimum score of the solvency criterion are 20 points and 0 point respectively. The solvency criterion includes 3 sub-criteria as follows:

The solvency ratio in the following business day:

- The ratio is always higher than or equal to 1: 8 points;

- The ratio is smaller than 1 one time: 4 points;

- The ratio is smaller than 1 two times: 1 point;

- The ratio is smaller than 1 three times or more: 0 point.

The solvency ratio in the following 7 business days:

- The ratio is always higher than or equal to 1: 8 points;

- The ratio is smaller than 1 one time: 4 points;

- The ratio is smaller than 1 two times: 1 point;

- The ratio is smaller than 1 three times or more: 0 point.

The maximum ratio of short-term capital used for granting medium-term and long-term loans:

- The ratio is always smaller than or equal to 30%: 4 points;

- The ratio is higher than 30% one time: 2 points;

- The ratio is higher than 30% two times: 1 point;

- The ratio is higher than 30% three times or more: 0 point.

View how to calculate scores for other criteria at Circular No. 42/2016/TT-NHNN of the State Bank of Vietnam, effective from May 01, 2017.

- Thanh Lam -

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