Amending conditions for “A” rating of a wholly State-owned credit institution in Vietnam

Nguyen Trinh

07:56, 07/01/2021

This is a notable content of the Circular No. 114/2020/TT-BTC amending the Circular No. 12/2018/TT-BTC providing guidance on financial supervision, evaluation of efficiency of State capital investment in wholly State-owned credit institutions and credit institutions of which over 50% charter capital is held by the State.

A credit institution is given “A” rating if it meets all of the conditions specified at Point d.1 Clause 3 Article 1 of the Circular No. 114/2020/TT-BTC of the Ministry of Finance of Vietnam. In which, these 02 following amended conditions that need to be noted:

- Within the evaluation year, it is not reminded in writing or given more than two written reminders by the owner’s representative agency or the financial authority of its invalid or late submission of any of supervision reports, report on credit institution rating, financial statements and other reports (Previously, the Circular No. 12/2018/TT-BTC stipulates that it is reminded in writing or given one written reminders by the owner’s representative agency or the financial authority);

- If it is facing administrative penalties, it must ensure the number of branches (including headquarters address) incurring penalties shall not exceed 10% of total branches of the credit institution (Previously, the Circular No. 12/2018/TT-BTC stipulates that in case a credit institution faces administrative penalties, no more than 5% of its branches (including the head office) is liable to warnings or fines (each fine shall not exceed VND 70,000,000)).

More details at the Circular No. 114/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from February 15, 2021, amending the Circular No. 12/2018/TT-BTC.

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