The State Bank of Vietnam (SBV) published the Circular No 06/2021/TT-NHNN, which amends and supplements certain articles of Circular No. 39/2013/TT-NHNN on determining, setting up, managing, and using risk provisions of SBV. The Circular No 06/2021/TT-NHNN takes effect from August 16, 2021. SBV also published Circular No 05/2021/TT-NHNN that amends and supplements certain articles of Circular No. 42/2016/TT-NHNN on regulations on ratings of people's credit funds. This Circular No 05/2021/TT-NHNN takes effect from August 01, 2021. The amendments are related to classification of credit funds, notification of rating results, and responsibilities of State Bank branches, and banking supervisory agency.
The amendments to Circular No. 42/2016/TT-NHNN includes the following:
- People's credit funds shall be classified into Grade A (Good), Grade B (Excellent), Grade C (Average), and Grade D (Weak).
- Before May 31 of every year, State Bank branch shall rate the performance of local people’s credit funds in the preceding year.
- Ratings shall be assigned based on documents, information, and data specified in Article 4 of Circular No. 42/2016/TT-NHNN and additional reports and explanations provided by people’s credit funds during the rating process.
- Within five working days from the date of completion of the rating process, State Bank branch shall report results of rating of people’s credit funds to the Governor of SBV (via Banking Inspection and Supervision Agency) using Form No. 01 issued with Circular No 05/2021/TT-NHNN and announce the rating results (including total score) to each people’s credit fund.
Related Links (in Vietnamese)
Effective Date: August 16, 2021 (Circular No. 6)/August 01, 2021 (Circular No. 5)
Keywords: Asia Pacific, Vietnam, Banking, Credit Risk, Credit Ratings, Credit Funds, SBV
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