Vietnam does not publicize bank ranking results

September 13, 2017 14:55

The State Bank will evaluate each bank according to class A, B, C, D but because of the 'sensitive nature', people will not know the results.

The State Bank has just solicited comments on the Draft Circular on the ranking of credit institutions and foreign bank branches. According to this draft, each year the State Bank will evaluate the ranking of banks in the system according to 5 grades: Grade A (Good), B (Fair), C (Average), D (Weak) or E (Poor).

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The State Bank will rank banks annually.

The ranking will be based on both quantitative and qualitative criteria. The quantitative indicators measure the soundness of banking operations based on performance data. The qualitative indicators measure the level of compliance with legal regulations.

However, after being approved by the Governor (expected before June every year), the ranking results are not widely announced but only notified to the ranked credit institutions and the State Bank branch where the bank is headquartered to coordinate in supervision work.

Thus, this ranking is mainly to serve the internal inspection and supervision work of the banking industry.

Previously, Decision No. 06 issued by the State Bank in 2008 also stipulated that the operator must publish the official classification results on its website. However, the State Bank Inspection and Supervision Agency said that this "has not been implemented due to the sensitive nature of the publication". In addition, the quality of the classification has not been guaranteed to be accurate, mainly based on the self-classification results reported by joint stock commercial banks.

Therefore, in this draft, the State Bank continues to propose annual ranking for banks that have not yet publicly announced their ranking results. Explaining further about this, the drafting agency said: "Through research and consultation with international organizations (WB, JICA), there is currently no country whose management agency has announced the ranking results of credit institutions and the announcement of the above results is highly sensitive."

According to VNE

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Vietnam does not publicize bank ranking results
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