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

11:55, 16/01/2017

At the end of 2016, the State Bank of Vietnam issued Circular No. 42/2016/TT-NHNN 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 capital criterion are 10 points and 0 point respectively. The capital criterion includes 3 sub-criteria as follows:

Charter capital/legal capital ratio:

- 500% or higher: 3 points;

- From 400% to under 500%: 2 points;

- From 300% to under 400%: 1 point;

- Less than 300%: 0 point.

Capital adequacy ratio:

- 10% or higher: 5 points;

- From 9% to under 10%: 3 points;

- From 8% to under 9%: 1 point;

- Less than 8%: 0 point.

Maintenance of capital adequacy ratio:

The people’s credit fund that has complied with SBV’s regulations on minimum capital adequacy ratios during the year will be given 2 points. 1 point will be deducted from the total score of this sub-criterion for each violation against regulations on capital adequacy ratio but no more than 2 points can be deducted.

View full text at Circular No. 42/2016/TT-NHNN of the State Bank of Vietnam, effective from May 01, 2017.

- Thanh Lam -

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