Weights of Each Quantitative Criterion for Evaluating Credit Institutions in Vietnam

18:16, 10/07/2024

On December 31, 2018, the State Bank of Vietnam issued Circular 52/2018/TT-NHNN stipulating the ranking of credit institutions and foreign bank branches.

According to Circular 52/2018/TT-NHNN, the weights for each quantitative criterion applied to each peer group in Vietnam are specifically determined as follows:

No.	Criteria/Indicator	Weight (%)
1	CAPITAL (C)
1.1	Capital Adequacy Ratio
	Large-scale commercial banks	50.00
	Small-scale commercial banks	50.00
	Foreign bank branches	50.00
	Finance companies	50.00
	Financial leasing companies	50.00
	Cooperative banks	50.00
1.2	Tier 1 Capital Adequacy Ratio
	Large-scale commercial banks	50.00
	Small-scale commercial banks	50.00
	Foreign bank branches	50.00
	Finance companies	50.00
	Financial leasing companies	50.00
	Cooperative banks	50.00
2	ASSET QUALITY (A)
2.1	Ratio of non-performing loans (NPLs), unresolved NPLs sold to VAMC, and restructured loans at risk of becoming NPLs to total loans plus unresolved NPLs sold to VAMC
	Large-scale commercial banks	45.00
…	…	…

Circular 52/2018/TT-NHNN takes effect from April 1, 2019.

- Thanh Lam -

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