Circular 21/2025/TT-NHNN on rating of credit institutions and foreign bank branches

 CIRCULAR

On rating of credit institutions and foreign bank branches

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12;

Pursuant to the Law on Credit Institutions No. 32/2024/QH15;

Pursuant to the Government’s Decree No. 26/2025/ND-CP defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Department of Banking System Safety;

The Governor of the State Bank of Vietnam hereby promulgates the Circular on rating of credit institutions and foreign bank branches.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides regulations on rating of credit institutions and foreign bank branches.

Article 2. Subjects of application

1. This Circular applies to the following subjects:

a) Credit institutions, including Commercial banks (including commercial banks with more than 50% of charter capital owned by the State, joint-stock commercial banks, joint-venture banks, wholly foreign-owned banks), cooperative banks, non-bank credit institutions;

b) Foreign bank branches;

c) Other organizations and individuals involved in the rating of credit institutions and foreign bank branches.

2. This Circular shall not apply to credit institutions and foreign bank branches falling into one of the following cases:

a) Credit institutions placed under special control by the State Bank of Vietnam (hereinafter referred to as the State Bank);

b) Credit institutions and foreign bank branches that have submitted to the State Bank dossiers of application for dissolution (in case of voluntary dissolution of credit institutions and foreign bank branches), or have been requested by the microprudential supervisory unit to be subject to a written request of the Governor of the State Bank for asset liquidation, establishment of a liquidation council, or liquidation supervision team (in case the credit institutions and foreign bank branches’ licenses have been revoked) as prescribed by law;

c) Having an operational period of less than 24 months from the date of official commencement of operations;

d) Credit institutions and foreign bank branches subject to early intervention under the Law on Credit Institutions (excluding credit institutions and foreign bank branches subject to early intervention under Point b, Clause 1, Article 156 of the Law on Credit Institutions).

Article 3. Interpretation of terms

For the purposes of this Circular, the terms below shall be construed as follows:

1. Capital adequacy ratio means the criterion defined according to the State Bank's applicable regulations on capital adequacy ratio, limits and prudential ratios in operations of credit institutions and foreign bank branches.

2. Tier-1 capital adequacy ratio means the criterion which is specified as follows:

a) In case credit institutions and foreign bank branches comply with the capital adequacy ratio under the State Bank's regulations on limits and prudential ratios in operations of credit institutions and foreign bank branches (excluding Circular No. 41/2016/TT-NHNN dated December 30, 2016, prescribing capital adequacy ratios for banks and foreign bank branches (hereinafter referred to as Circular No. 41/2016/TT-NHNN), Circular No. 14/2025/TT-NHNN on capital adequacy ratio of commercial banks and foreign bank branches (hereinafter referred to as Circular No. 14/2025/TT-NHNN), tier-1 capital adequacy ratio shall be determined according to the following formula:

The determination of standalone Tier-1 capital and standalone risk-weighted assets shall comply with the State Bank's regulations on limits and prudential ratios in the operations of credit institutions and foreign bank branches.

b) In case credit institutions and foreign bank branches comply with the capital adequacy ratio under Circular No. 41/2016/TT-NHNN, the Tier-1 capital adequacy ratio shall be determined according to the following formula:

In which:

- RWA: Total credit risk-weighted assets

- K_OR: Regulatory capital for operational risk

- K_MR: Regulatory capital for market risk

The determination of Tier-1 capital, RWA, K_OR, K_MR shall comply with Circular No. 41/2016/TT-NHNN;

c) In case commercial banks and foreign bank branches comply with the capital adequacy ratio under Circular No. 14/2025/TT-NHNN, the Tier-1 capital adequacy ratio shall be determined according to the formula for determining the Tier-1 capital adequacy ratio specified in Circular No. 14/2025/TT-NHNN.

3. Restructured loan showing the latent risk of becoming non-performing loan means the customer's debit balance which has not yet been re-classified as non-performing loan due to the debt rescheduling, exemption or reduction of interests and maintenance of classified loan groups by credit institutions and foreign bank branches.

4. Non-performing loan sold to the VAMC but not yet handled means non-performing loan which has been sold to the Vietnam Asset Management Company (VAMC) for payment by special bonds but have not yet been handled or recovered.

5. Ratio of credit outstanding balance to the 100 largest borrowers with largest credit outstanding balance compared to the credit outstanding balance to economic organizations and individuals means the ratio determined by the total credit outstanding balance to the 100 borrowers (excluding credit institutions and foreign bank branches) with the largest credit outstanding balance compared to the credit outstanding balance to economic organizations and individuals (excluding credit institutions and foreign bank branches). In cases where a credit institution or foreign bank branch has fewer than 100 borrowers (excluding credit institutions and foreign bank branches), the ratio of credit outstanding balance to the 100 largest borrowers with the largest credit outstanding balance compared to credit outstanding balance to economic organizations and individuals shall be equal to 100%.

6. Operating expenses means the item Operating expenses reflected in the Income Statement in accordance with the law on the financial reporting regime applicable to credit institutions and foreign bank branches.

7. Total operating income means the sum of net interest income, net profit/loss from service activities, net profit/loss from foreign exchange activities, net profit/loss from trading securities transactions, net profit/loss from investment securities transactions, net profit/loss from other activities, and income from capital contribution and share purchase, as reflected in the Income Statement in accordance with the law on the financial reporting regime applicable to credit institutions and foreign bank branches.

8. Average equity means the equity item reflected in the Financial Statement in accordance with the law on the financial reporting regime applicable to credit institutions and foreign bank branches, calculated as the average of the quarterly figures in the year.

9. Average total assets means the total assets item reflected in the Financial Statement in accordance with the law on the financial reporting regime applicable to credit institutions and foreign bank branches, calculated as the average of the quarterly figures in the year.

10. Net interest margin (NIM) means an indicator assessing the performance of credit institutions and foreign bank branches. This indicator reflects the difference between the average deposit interest rate and the average lending interest rate of credit institutions and foreign bank branches. This indicator is determined as follows:

In which:

- Net interest income means the item Net interest income reflected in the Income Statement in accordance with the law on the financial reporting regime applicable to credit institutions and foreign bank branches;

- Average earning assets is the total items of Deposits at the State Bank, Deposits at other credit institutions and loans granted to other credit institutions (excluding risk provisions), Loans to customers (excluding risk provisions), Debt purchase (excluding risk provisions), Investment securities (excluding risk provisions, provisions for devaluation and VAMC bonds), which are recorded on the Financial Statement according to the law on financial reporting regime applicable to credit institutions, foreign bank branches, and averaged over quarters of a year.

11. Number of days of interest receivable means an indicator assessing the performance of credit institutions and foreign bank branches. This indicator reflects the number of days required to collect the interest receivables already recognized as income of credit institutions and foreign bank branches. This indicator is determined as follows:

In which:

- Interest and fees receivable mean the item Interest and fees receivable reflected in the Financial Statement in accordance with the law on the financial reporting regime applicable to credit institutions and foreign bank branches;

- Interest income and similar income means the item Interest income and similar income reflected in the Income Statement in accordance with the law on the financial reporting regime applicable to credit institutions and foreign bank branches;

- n takes the following respective values: n = 4 if the estimated number of days of interest receivable of the rating year is based on quarterly data; n = 2 if the estimated number of days of interest receivable of the rating year is based on semi-annual data; n = 4/3 if the estimated number of days of interest receivable of the rating year is based on 9-month data; n = 1 if the number of days of interest receivable of the rating year is determined based on annual data.

12. Average high-quality liquid assets means high-quality liquid assets determined in accordance with the law on prudential ratios in the operations of credit institutions and foreign bank branches (liquidity coverage ratio), calculated on the average of the last working days of the quarters in the year.

13. Customers with large deposit balances include 10 customers (excluding credit institutions, foreign bank branches, and the State Treasury) having the largest deposit balances at a credit institution or foreign bank branch.

14. Ratio of total foreign exchange position to average standalone owner's capital is determined as follows:

In which:

- k takes values from 1 to 12, corresponding to the 12 months in the rating year. In case of k = 1, the standalone owner's capital of month (k-1) means the standalone owner's capital at the end of December of the year immediately preceding the rating year;

- The total long foreign exchange position of month k and the total short foreign exchange position of month k shall be determined in accordance with the law on foreign exchange positions of credit institutions and foreign bank branches as at the last working day of month k;

- Standalone owner’s capital shall be determined in accordance with the law on prudential ratios in the operations of credit institutions and foreign bank branches (standalone capital adequacy ratio).

15. Ratio of the difference between interest-sensitive assets and interest-sensitive liabilities to equity shall be determined as follows:

In which:

- Interest-sensitive assets mean the total on-balance-sheet assets sensitive to interest rates (excluding non-interest-bearing assets), as reflected in the explanatory notes to the Financial Statement in accordance with the law on the financial reporting regime applicable to credit institutions and foreign bank branches;

- Interest-sensitive liabilities mean the total on-balance-sheet liabilities sensitive to interest rates (excluding non-interest-bearing liabilities) which are recorded in the explanatory notes to the Financial Statement according to the law on the financial reporting regime applicable to credit institutions and foreign bank branches;

- Equity means the equity item as reflected in the Financial Statement in accordance with the law on the financial reporting regime applicable to credit institutions and foreign bank branches.

16. Minimum monetary fine means the minimum level of the monetary fine frame applicable to violations committed by organizations as prescribed in the Decree on administrative sanctions in the monetary and banking sector effective at December 31 of the rating year (in the case of periodic rating) or at the last day of the quarter immediately preceding the rating time (in the case of rating under Clause 3, Article 22 of this Circular).

17. Unremedied violations mean violations for which remedial measures have been requested by a competent state agency but have not yet been certified as completed by such competent state agency.

18. Average other assets mean the Other assets item as reflected under Item XII - Other assets in the Financial Statement in accordance with the law on the financial reporting regime applicable to credit institutions and foreign bank branches, calculated on the average of the quarters in the year.

Article 4. Principles and methods of rating credit institutions and foreign bank branches

1. The rating must ensure a comprehensive reflection of the operational status and risks of credit institutions and foreign bank branches and comply with the law.

2. Credit institutions and foreign bank branches shall be classified into peer groups as follows:

a) Group 1: Large-scale commercial banks (with average total assets by quarter in the rating year exceeding VND 300,000 billion);

b) Group 2: Small-scale commercial banks (with average total assets by quarter in the rating year equal to or less than VND 300,000 billion);

c) Group 3: Foreign bank branches;

d) Group 4: Finance companies (including general finance companies, factoring finance companies, consumer credit finance companies);

dd) Group 5: Financial leasing companies;

e) Group 6: Cooperative banks.

3. Credit institutions and foreign bank branches shall be rated according to a system of criteria. Each rating criterion shall comprise a group of quantitative indicators and a group of qualitative indicators. The group of quantitative indicators shall measure the soundness of banking operations based on the operational data of the credit institution or foreign bank branch. The group of qualitative indicators shall measure the level of compliance with laws and directives of the State Bank by the credit institution or foreign bank branch.

4. The weights of indicator groups and the weights of each indicator under each peer group shall be determined based on the importance of each indicator group and each indicator to the soundness of banking operations and the requirements of inspection and supervision.

5. Based on the rating score attained, credit institutions and foreign bank branches shall be classified into one of the following rates: Good (A), Fairly Good (B), Average (C), Weak (D), or Poor (E).

Article 5. Documents, information, and data for rating

1. Documents, information, and data used for rating:

a) Documents, information, and data of credit institutions and foreign bank branches submitted to the State Bank in accordance with the law on reporting and statistical regimes;

b) Information and data in the financial statements of credit institutions and foreign bank branches which have been independently audited in accordance with law;

c) Results of supervision, inspection, examination, and audit (including information on confirmation of completion of remediation for violations committed by credit institutions and foreign bank branches) by the State Bank, other competent state management agencies, or independent audit firms relating to the monetary and banking sector;

d) Other documents, information, and data of credit institutions and foreign bank branches submitted to the State Bank in accordance with the law and at the request of the State Bank.

2. Figures used for calculating rating scores shall be:

a) Standalone figures of credit institutions and foreign bank branches (excluding subsidiaries and affiliates);

b) Figures as at December 31 annually of credit institutions and foreign bank branches, except for indicators calculated on an average basis;

c) In case of rating under Clause 3, Article 22 of this Circular, the State Bank's Governor shall make a decision on the scope of documents, data or information used for rating credit institutions and foreign bank branches.

Article 6. Rating criteria system

1. The system of criteria used for rating credit institutions and foreign bank branches includes:

a) Capital (C);

b) Asset quality (A);

c) Management (M);

d) Earnings (E);

dd) Liquidity (L);

e) Sensitivity to market risk (S).

2. Credit institutions and foreign bank branches shall be scored according to the criteria and groups of indicators prescribed in Articles 7, 8, 9, 10, 11, and 12 of this Circular.

Chapter II

SPECIFIC PROVISIONS

Section 1

RATING CRITERIA AND GROUPS OF INDICATORS

Article 7. Capital

The capital criterion of credit institutions and foreign bank branches shall be assessed and scored according to the following groups of indicators:

1. Quantitative indicator group:

a) Capital adequacy ratio;

b) Tier-1 capital adequacy ratio.

2. Qualitative indicator group:

a) Compliance with the minimum capital adequacy ratio as prescribed;

b) Compliance with the law on the actual value of charter capital and allocated capital;

c) Compliance with the law on internal capital adequacy assessment.

Article 8. Asset quality (A)

The asset quality criterion of credit institutions and foreign bank branches shall be assessed and scored according to the following groups of indicators:

1. Quantitative indicator group:

a) The ratio of non-performing loans, non-performing loans sold to the VAMC but not yet handled and restructured loans showing the latent risk of becoming non-performing loans to liabilities plus non-performing loans sold to the VAMC but not yet handled;

b) Ratio of group-2 loans to liabilities;

c) Ratio of credit outstanding balance to the 100 largest borrowers with the largest credit outstanding balance compared to the credit outstanding balance to economic organizations and individuals;

d) Ratio of loans and off-balance-sheet commitments and commitments of groups 3 thru 5 to liabilities and off-balance-sheet commitments of groups 1 thru 5;

dd) Ratio of provisions for trading securities and investment securities (excluding provisions already set aside for special bonds when selling loans to VAMC) to total balances of trading securities and investment securities (excluding balances of special bonds when selling loans to VAMC);

e) Ratio of credit outstanding balance for investment or real estate business in comparison to total credit outstanding balance (excluding credit outstanding balance for other credit institutions and foreign bank branches);

g) Ratio of specific provisions already set aside to group-2 to group-5 loans;

h) Ratio of average other assets to average total assets.

2. Qualitative indicator group:

a) Compliance with the law on credit extension;

b) Compliance with the law on internal credit rating system;

c) Compliance with the law on classification of assets, levels and methods of setting aside risk provisions, and the use of risk provisions for handling risks in the operations of credit institutions and foreign bank branches;

d) Compliance with the provisions of law on setting aside and using provisions for losses on financial investments and doubtful debts;

dd) Compliance with the law on setting aside and using risk provisions for special bonds issued by the Vietnam Asset Management Company;

e) Compliance with the law on credit extension limit;

g) Compliance with the law on credit risk management.

Article 9. Management

The management criterion of credit institutions and foreign bank branches shall be assessed and scored according to the following groups of indicators:

1. Quantitative indicator group: Ratio of operating expenses to total operating income.

2. Qualitative indicator group:

a) Compliance with the law on shareholders, shares, and stocks;

b) Compliance with the law on limits to capital contribution and shareholding;

c) Compliance with the law on the Board of Directors, Members’ Council, Supervisory Board, Executive Board, and other laws on the governance and management of credit institutions and foreign bank branches;

d) Compliance with the law on internal control systems, including oversight by senior management, internal control, internal audit, and risk management (excluding credit risk management, liquidity risk management, and market risk management) of credit institutions and foreign bank branches;

dd) Compliance with the law on independent audit;

e) Compliance with the law on information and reporting regimes;

g) Compliance with the law on promulgation, review, amendment, supplementation, and reporting of internal regulations;

h) Compliance with the law on monetary and banking matters other than those already specified in the qualitative indicators provided in Articles 7, 8, 10, 11, and 12 of this Circular, and Points a, b, c, d, dd, e, and g, Clause 2 of this Article.

Article 10. Earnings

The earning criterion of credit institutions and foreign bank branches shall be assessed and scored according to the following groups of indicators:

1. Quantitative indicator group:

a) Ratio of profit before tax to average equity;

b) Ratio of profit before tax to average total assets;

c) Net interest margin (NIM);

d) Number of days of interest receivable.

2. Qualitative indicator group: Compliance with the law on the financial regime applicable to credit institutions and foreign bank branches.

Article 11. Liquidity

The liquidity criterion of credit institutions and foreign bank branches shall be assessed and scored according to the following groups of indicators:

1. Quantitative indicator group:

a) Ratio of average high-quality liquid assets to average total assets;

b) Ratio of short-term capital sources used for medium- and long-term loans;

c) Loan-to-deposit ratio;

d) Ratio of deposits of customers with large deposit balances to total deposits.

2. Qualitative indicator group: Compliance with the law on liquidity coverage ratio and, maximum ratio of short-term capital sources to be used for provision of medium- and long-term loans, and the loan-to-deposit ratio.

Article 12. Sensitivity to market risk

The sensitivity to market risk criterion of credit institutions and foreign bank branches shall be assessed and scored according to the following groups of indicators:

1. Quantitative indicator group:

a) Ratio of total foreign exchange position to average standalone owner's capital;

b) Ratio of the difference between interest-sensitive assets and interest-sensitive liabilities to equity.

2. Qualitative indicator group:

a) Compliance with the limit on total foreign exchange position as prescribed by law;

b) Compliance with the law on market risk management.

Section 2

SCORING AND RATING METHODS

Article 13. Method of scoring each indicator and quantitative indicator group

The score of each quantitative indicator under the six rating criteria shall be calculated on a scale of 1, 2, 3, 4, or 5; the score of a group of quantitative indicators shall be calculated on a scale of 1 to 5; in which a score of 5 is the best and a score of 1 is the worst, specifically as follows:

1. The score of each quantitative indicator shall be determined on the basis of comparing the value of the quantitative indicator with the scoring thresholds of such indicator. The scoring thresholds for quantitative indicators shall be determined based on historical data of the quantitative indicators of credit institutions and foreign bank branches. The score of each quantitative indicator shall be determined as follows:

a) In case the higher the value of the quantitative indicator, the lower the level of risk:

(i) The score will stand at 5 if the value is greater than or equal to the threshold 1;

(ii) The score will stand at 4 if the value is greater than or equal to threshold 2, and lower than threshold 1;

(iii) The score will stand at 3 if the value is greater than or equal to threshold 2;

(iv) The score will stand at 2 if the value is greater than or equal to threshold 4, and lower than threshold 3;

(v) The score will stand at 1 if the value is lower than the threshold 4.

b) In case the higher the value of the quantitative indicator, the higher the level of risk:

(i) The score will stand at 5 if the value is less than or equal to the threshold 1;

(ii) The score will stand at 4 if the value is less than or equal to threshold 2, and greater than threshold 1;

(iii) The score will stand at 3 if the value is less than or equal to threshold 3, and greater than threshold 2;

(iv) The score will stand at 2 if the value is less than or equal to threshold 4, and greater than threshold 3;

(v) The score will stand at 1 if the value is greater than the threshold 4.

c) In case the closer the value of the quantitative indicator is to zero, the lower the level of risk:

(i) The score will stand at 5 if the absolute value is less than or equal to the threshold 1;

(ii) The score will stand at 4 if the absolute value is less than or equal to threshold 2, and greater than threshold 1;

(iii) The score will stand at 3 if the absolute value is less than or equal to threshold 3, and greater than threshold 2;

(iv) The score will stand at 2 if the absolute value is less than or equal to threshold 4, and greater than threshold 3;

(v) The score will stand at 1 if the absolute value is greater than the threshold 4.

d) Thresholds 1, 2, 3, and 4 of each quantitative indicator applicable to each peer group shall be provided in Article 14 of this Circular;

dd) In case commercial banks and foreign bank branches apply the capital adequacy ratio in accordance with the standardized approach provided in Circular No. 14/2025/TT-NHNN or the internal ratings-based approach provided in Circular No. 14/2025/TT-NHNN, the thresholds used for scoring shall be those applicable to the capital adequacy ratio as stipulated in Circular No. 41/2016/TT-NHNN as provided in Article 14 of this Circular;

e) In case the total operating income has a negative value when determining the quantitative indicator specified in Clause 1, Article 9 of this Circular, or the pre-tax profit and average equity have negative values when determining the quantitative indicator specified at Point a, Clause 1, Article 10 of this Circular, the score of each such quantitative indicator shall be 1.

2. The score of the quantitative indicators group under each criterion shall be determined by the sum of the scores of each quantitative indicator after being multiplied by its respective weights. The weight of each quantitative indicator applicable to each peer group shall be specified in Article 15 of this Circular.

3. For the quantitative indicator specified at Point a, Clause 1, Article 7 of this Circular, in case a commercial bank or a foreign bank branch implements the capital adequacy ratio according to the standardized approach prescribed in Circular No. 14/2025/TT-NHNN before January 01, 2030, or according to the internal credit rating-based approach prescribed in Circular No. 14/2025/TT-NHNN, the score of the quantitative indicator specified at Point a, Clause 1, Article 7 of this Circular shall be increased by one (01) point after being determined under Points a, d, and dd, Clause 1 of this Article, provided that the score of this quantitative indicator does exceed five.

Article 14. Scoring thresholds for each quantitative indicator

The thresholds 1, 2, 3, and 4 of each quantitative indicator for each peer group shall be specifically determined as follows:

Article 15. Weight of each quantitative indicator

The weight of each quantitative indicator applicable to each peer group shall be specifically determined as follows:

Article 16. Scoring of groups of qualitative indicators

1. The score given to a group of qualitative indicators in each rating criterion shall be determined on the basis of evaluating the compliance with legal provisions and direction of the State Bank by a credit institution or foreign bank branch, according to the score 1, 2, 3, 4 or 5; in which the smaller the score, the lower the level of legal compliance.

2. Violations committed by credit institutions and foreign bank branches that are used for scoring groups of qualitative indicators of each rating criterion specified in Articles 7, 8, 9, 10, 11, and 12 of this Circular shall be determined according to 2 (two) following criteria:

a) Time for determining violations:

(i) Violations are detected within 4 (four) years preceding the rating year but have not yet been remedied yet before December 31 of the rating year; (ii) Violations are detected in the rating year;

b) Forms of determining violations:

(i) Decision on sanctioning administrative violations issued by a competent person; (ii) Decision on enforcement of remedial measures issued by a competent person;

(iii) Minutes of administrative violations made by a competent person;

(iv) Supervision results, inspection or audit conclusions, and audit results of competent agencies or organizations in accordance with the law relating to monetary and banking (including regional State Bank branches and other units under the State Bank, other competent state management agencies, and independent audit firms);

(v) Violations that have been detected and reported by credit institutions and foreign bank branches themselves, but have not been completely remedied;

(vi) In case the same violation is recorded in more than one of the documents specified at Points b(i), b(ii), b(iii), b(iv), and b(v) of this Clause, it shall be determined as one violation.

3. The score of the qualitative indicator group under each rating criterion shall be determined based on the comparison between the value of the qualitative indicator group specified in Clause 4 of this Article and the scoring thresholds of the qualitative indicator group specified in Article 17 of this Circular. To be specific:

a) The score will stand at 5 if the value of the qualitative indicator group is less than or equal to threshold 1;

b) The score will stand at 4 if the value of the qualitative indicator group is less than or equal to threshold 2, and greater than threshold 1;

c) The score will stand at 3 if the value of the qualitative indicator group is less than or equal to threshold 3, and greater than threshold 2;

d) The score will stand at 2 if the value of the qualitative indicator group is less than or equal to threshold 4, and greater than threshold 3;

dd) The score will stand at 1 if the value of the qualitative indicator group is greater than threshold 4.

4. The value of the qualitative indicator group is the value reflecting the extent of violations of the monetary and banking regulations by a credit institution or foreign bank branch, taking into account the size of the credit institution or foreign bank branch in each rating criterion. The value of the qualitative indicator shall be determined as follows:

In which:

- Total fine refers to the total fine imposed for violations of indicators within the qualitative indicator group under a given rating criterion. The total fine shall be calculated as the sum of the total fine for violations as defined at Point b(i), Clause 2 of this Article, as specified in the decisions on sanctioning of administrative violations issued by competent persons; and
(ii) the minimum fine levels for violations as defined at Points b(ii), b(iii), b(iv), and b(v), Clause 2 of this Article, as prescribed in the Government’s Decree on sanctioning of administrative violations in the monetary and banking sector. For violations specified at Points b(iv) and b(v), Clause 2 of this Article that are not provided for in the Government’s Decree on sanctioning of administrative violations in the monetary and banking sector, the fine used to determine the total fine shall be 0. For violations subject to warning, the fine for determining the total fine is 0;

- Standalone owner's capital shall be determined according to the State Bank's regulations on limits and prudential ratios in operations of credit institutions and foreign bank branches.

5. After determining the score of a qualitative indicator group at each rating criterion as prescribed in Clause 3 of this Article, the credit institution or foreign bank branch shall be subject to point deductions, provided that the maximum total deduction shall not exceed 0.9 points, in accordance with the following principles:

a) Within the same qualitative indicator group under each rating criterion, where a credit institution or foreign bank branch commits two (02) or more violations, the score of the qualitative indicator group shall be reduced by 0.1 point for each additional violation (applicable from the second violation onward), except as provided at Point b of this Clause;

b) In the case of violations that are self-detected and reported by the credit institution or foreign bank branch but have not yet been remedied, the score of the qualitative indicator group shall be reduced by 0.05 point for each additional violation (applicable from the second violation onward).

6. Where a credit institution or foreign bank branch fails to fully implement the remedial plan for recommendations or warnings of the State Bank related to organizational structure, governance, management and/or exceeds the credit growth limit as notified by the State Bank, except for cases caused by force majeure events, the score of the qualitative indicator group prescribed in Clause 2, Article 9 of this Circular, after being determined in accordance with Clauses 3 and 5 of this Article, shall continue to be reduced as follows:

a) Where the score of the qualitative indicator group is greater than 1, the score of the qualitative indicator group of the credit institution or foreign bank branch shall be reduced by 1 point;

b) Where the score of the qualitative indicator group is less than or equal to 1, the score of the qualitative indicator group of the credit institution or foreign bank branch shall be reduced by 0.1 point.

7. Where a credit institution or foreign bank branch has not yet been or is not subject to compliance with one or several indicators within the qualitative indicator group under the law on monetary and banking operations, it shall not be assigned a score for such indicator(s).

Article 17. Scoring thresholds for each qualitative indicator group

The higher the value of thresholds 1, 2, 3, and 4 of each qualitative indicator group, the lower the level of compliance with laws by the credit institution or foreign bank branch. These thresholds are specified as follows:

Article 18. Scores of each criterion

The score of each criterion as prescribed in Articles 7, 8, 9, 10, 11, and 12 of this Circular shall be equal to the total score of the quantitative indicator group and the qualitative indicator group under such criterion after being multiplied by the weight of each quantitative and qualitative indicator group. The weights of each quantitative and qualitative indicator group shall be specified in Article 19 of this Circular.

Article 19. Weights of each criterion, quantitative indicator group, and qualitative indicator group within each criterion

1. The weights of each criterion, quantitative indicator group, and qualitative indicator group shall be specifically determined as follows:

2. For finance companies and finance leasing companies, the weight of the criterion “Sensitivity to market risk” shall be 5%, the weight of the quantitative indicator group under this criterion shall be 5%, and the weight of the qualitative indicator group under this criterion shall be 0%.

Article 20. Method of calculating the total rating score

1. The total rating score of a credit institution or foreign bank branch shall be determined based on the aggregate score of each criterion after multiplying by the weight of each criterion. The weights of each criterion are prescribed in Article 19 of this Circular.

2. The total rating score of a credit institution or foreign bank branch shall be subject to a deduction when the score of the qualitative indicator group of 4 or more criteria is less than or equal to 1 point, under the following circumstances:

a) Where the total rating score is greater than 1, the total rating score of the credit institution or foreign bank branch shall be reduced by 1 point;

b) Where the total rating score is less than or equal to 1, the total rating score of the credit institution or foreign bank branch shall be reduced and equal to 0.1 point.

3. Where the audited financial statements of the rating year of a credit institution or foreign bank branch contain other than an unqualified opinion, the total rating score of the credit institution or foreign bank branch, after being determined in accordance with Clauses 1 and 2 of this Article, shall continue to be subject to a deduction under the following circumstances:

a) Where the total rating score is greater than 0.5, the total rating score of the credit institution or foreign bank branch shall be reduced by 0.5 point;

b) Where the total rating score is less than or equal to 0.5, the total rating score of the credit institution or foreign bank branch shall be reduced and equal to 0.1 point.

Article 21. Rating classification

Credit institutions and foreign bank branches shall be classified into the following rating grades:

1. A credit institution or foreign bank branch shall be rated Grade A (Good) if the total rating score is greater than or equal to 4.5.

2. A credit institution or foreign bank branch shall be rated Grade B (Fairly Good) if the total rating score is less than 4.5 and greater than or equal to 3.5.

3. A credit institution or foreign bank branch shall be rated Grade C (Average) if the total rating score is less than 3.5 and greater than or equal to 2.5.

4. A credit institution or foreign bank branch shall be rated Grade D (Weak) if the total rating score is less than 2.5 and greater than or equal to 1.5.

5. A credit institution or foreign bank branch shall be rated Grade E (Poor) if the total rating score is less than 1.5.

6. In addition to the provisions set forth in Clause 4 of this Article, a credit institution or foreign bank branch shall be rated Grade D (Weak) if it falls under any of the cases specified at Points a, c, and d, Clause 1, Article 156 of the Law on Credit Institutions.

7. In addition to the provisions set forth in Clause 5 of this Article, a credit institution or foreign bank branch shall be rated Grade E (Poor) if it falls under any of the cases specified at Points a, b, c, and dd, Clause 1, Article 162 of the Law on Credit Institutions.

8. The rating scores of credit institutions and foreign bank branches shall be determined as follows:

a) The total rating score shall be rounded to the second decimal according to the following rules:

(i) The second decimal digit shall be rounded up by 1 if the third decimal digit is from 5 to 9;

(ii) The second decimal digit shall remain unchanged if the third decimal digit is from 0 to 4;

b) The component scores of each group of criteria shall be rounded to the third decimal according to the following rules:

(i) The third decimal digit shall be rounded up by 1 if the fourth decimal digit is from 5 to 9;

(ii) The third decimal digit shall remain unchanged if the fourth decimal digit is from 0 to 4.

Section 3

RATING RESULTS

Article 22. Frequency, time of implementation, and approval of ratings

1. Before June 10 of each year, the Credit Institution Supervision Department shall act as the focal point to coordinate with the regional State Bank branches to submit to the Governor of the State Bank for approval of the rating results of the preceding year for credit institutions and foreign bank branches.

2. Before June 30 of each year, the Governor of the State Bank shall approve the rating results of the preceding year for credit institutions and foreign bank branches.

3. In case of an urgent requirement for state management purposes, the Governor of the State Bank shall decide on a different timeframe from that prescribed in Clauses 1 and 2 of this Article.

Article 23. Notification of rating results

1. Within 15 days from the date on which the Governor of the State Bank approves the rating results, the Credit Institution Supervision Department and the regional State Bank branches shall notify the rating results to each credit institution and foreign bank branch in accordance with the respective microprudential supervision entity.

2. The notification of rating results for each credit institution and foreign bank branch shall include the rating grade, total rating score, and the scores of each group of criteria as prescribed in Articles 7, 8, 9, 10, 11, and 12 of this Circular.

3. The Credit Institution Supervision Department shall act as the focal point to provide the rating results of credit institutions and foreign bank branches to other units under the State Bank for the purpose of state management according to the functions and duties of such units, upon approval by the Governor of the State Bank.

4. The State Bank shall provide the rating results of credit institutions and foreign bank branches to other organizations and state management agencies in accordance with the law.

5. The notification of rating results of joint venture banks, wholly foreign-owned banks, foreign bank branches, and foreign non-bank credit institutions to foreign central banks or foreign financial supervisory authorities shall be carried out in accordance with the Memorandum of Understanding on cooperation between the State Bank and the relevant foreign central banks or banking supervisory authorities.

Article 24. Management of rating results

1. Credit institutions and foreign bank branches shall not provide their rating results to any third party (except for the case where a foreign bank branch provides its rating result to its parent bank after the parent bank has submitted a written commitment not to disclose the rating result to any third party) in any form whatsoever.

2. The Credit Institution Supervision Department, the regional State Bank branches, other affiliated units of the State Bank, and other organizations or state management agencies that are entitled to receive the rating results of credit institutions and foreign bank branches under Clauses 3, 4, and 5, Article 23 of this Circular shall store and use the rating results in accordance with the law on state secret protection and archival management in the banking sector.

Chapter III

IMPLEMENTATION ORGANIZATION

Article 25. Responsibilities of credit institutions and foreign bank branches

1. Credit institutions and foreign bank branches shall bear full responsibility for the accuracy and truthfulness of the documents, information, and data provided, and shall be responsible for providing explanations and supplementary reports on matters related to the rating process as requested by the State Bank.

2. Rating results shall be managed in accordance with the provisions set forth in Clause 1, Article 24 of this Circular and other relevant laws.

Article 26. Responsibilities and powers of the Credit Institutions Supervision Department

1. To act as the focal point and coordinate with the regional State Bank branches and relevant units in implementing the rating of credit institutions and foreign bank branches subject to the microprudential supervision of each unit.

2. To act as the focal point to advice and submit to the Governor of the State Bank for approval of the rating results of credit institutions and foreign bank branches.

3. To take appropriate measures in accordance with law with respect to credit institutions and foreign bank branches under its microprudential supervision, based on the approved rating results.

4. To archive, notify, and provide the rating results of credit institutions and foreign bank branches in accordance with this Circular and the law on protection of state secrets in the banking sector.

Article 27. Responsibilities and powers of regional State Bank branches

1. The regional State Bank branches shall act as focal points and coordinate with the Credit Institution Supervision Department in implementing the rating of foreign bank branches whose head offices are located within their jurisdiction (excluding foreign bank branches subject to the microprudential supervision of the Credit Institution Supervision Department).

2. To take appropriate measures in accordance with law with respect to foreign bank branches under their microprudential supervision, based on the approved rating results.

3. Before March 31 of the year following the rating year, the regional State Bank branches shall provide the Credit Institution Supervision Department with: (i) documents, information, and data on violations of the laws on monetary and banking activities; (ii) results of implementation of conclusions, recommendations, and handling decisions from inspections and examinations (including detailed results of implementation of each recommendation and handling decision from inspections and examinations, and relevant information and data on financial and operational performance, if any); (iii) other documents, information, and data as provided in Article 5 of this Circular upon request of the Credit Institution Supervision Department to serve as the basis for the rating, and shall take responsibility for the accuracy and completeness of the documents, information, and data provided.

4. To archive, notify, and provide the rating results of credit institutions and foreign bank branches in accordance with this Circular and the law on protection of state secrets in the banking sector.

Article 28. Responsibility and powers of other affiliates of the State Bank

1. Before March 31 of the year following the rating year, the regional State Bank branches shall provide the Credit Institution Supervision Department with: (i) documents, information, and data on violations of the laws on monetary and banking activities; (ii) results of implementation of conclusions, recommendations, and handling decisions from inspections and examinations (including detailed results of implementation of each recommendation and handling decision from inspections and examinations, and relevant information and data on financial and operational performance, if any); (iii) other documents, information, and data as provided in Article 5 of this Circular upon request of the Credit Institution Supervision Department to serve as the basis for the rating, and shall take responsibility for the accuracy and completeness of the documents, information, and data provided.

2. Before March 31 of the year following the rating year, relevant units under the State Bank (excluding the State Bank’s Inspectorate) shall provide the Credit Institution Supervision Department and the regional State Bank branches with documents, information, and data upon request of the Credit Institution Supervision Department and the regional State Bank branches in accordance with this Circular, to serve as the basis for the rating, and shall be responsible for the accuracy and completeness of the documents, information, and data provided.

3. To perform other tasks and exercise other powers in accordance with Circular.

Article 29. Effect

1. This Circular takes effect from November 01, 2025.

2. Circular No. 52/2018/TT-NHNN dated December 31, 2018, on rating of credit institutions and foreign bank branches, and Circular No. 23/2021/TT-NHNN dated December 31, 2021, amending and supplementing a number of articles of Circular No. 52/2018/TT-NHNN dated December 31, 2018, on rating of credit institutions and foreign bank branches, cease to be effective from November 01, 2025, except for provisions of Clause 3 of this Article.

3. The rating of credit institutions and foreign bank branches for the 2025 rating year shall be conducted in accordance with Circular No. 52/2018/TT-NHNN and Circular No. 23/2021/TT-NHNN. The responsibilities of the units under the State Bank in implementing the rating of credit institutions and foreign bank branches for the 2025 rating year shall be carried out in accordance with this Circular.

Article 30. Implementation organization

Heads of units under the State Bank, credit institutions, and foreign bank branches shall organize the implementation of this Circular./.