The State Bank of Vietnam will evaluate the credit rating of local credit institutions and branches of foreign banks, and will publicize the rating results.
The rating will be conducted by the central banks’ inspectorate and supervisory agencies, in a bid to ensure the transparency of monetary and banking operations, Saigon Times Online reported.
The rating results will provide the basis for the central bank to assign credit growth targets to the banks, with those performing well set to be assigned higher growth targets than those with a lower rating.
The central bank’s inspectorate officials will rate the banks on the basis of six factors regarding their ability and operation.
With the credit growth target for the whole banking system this year standing at 15 to 17 percent, the central bank said it will categorize the credit institutions into four groups, including those with healthy operations (grade A), average operations (grade B), below-average operations (grade C), and finally, poor operations (grade D).
Banks belonging to higher grades will have higher credit growth targets, the central bank said.
