Cổng thông tin Khoa học và Công nghệ ngành Ngân hàng
“Vietnam Increasingly more banks international credit ratings demonstrate the development of asset quality, management capability and operational efficiency of the bank. This is an encouraging achievement and regional trends as well as the world shows that investors, businesses and personal customers will choose to use the services of the bank’s credit rating high “Mr. Le Xuan Nghia – former deputy chairman of the National Financial Supervision, commented.
For years the State Bank has often ranked A, B, C for banks in Vietnam, he assessed how about the form this ranking compared to benchmarks of international agencies such as Moody’s, Fitch Rating, sir?
The commercial banks are obliged to compulsory self-assessment of its Camel standards, then sent to the central bank. Inspection Agency State Bank will verify, confirm the assessment is fair to change. This is one of the basis for the State Bank of bank ratings, which are criteria to determine responsibility for the remote monitoring of the State bank.
The credit rating agencies such as Moody’s international rating system usually has much stricter because they rely heavily on international standards taking into account both operational management and risk management. Their rating is lower than the bank’s self-assessment and evaluation inland State Bank approval.
For example, many banks are Bank of Vietnam State ratings Moody’s Group A but never judge a bank of Vietnam standards A. This shows that they appreciated very serious and rigorous.
The health of banks is also reflected in the financial statements are audited, according to the results that credit rating bank health measure other than auditing organization look like?
The credit rating agencies often use multiple documents to assess the bank, including financial statements audited as a tool. However, they were “inspired” other technical aspects such as business strategy, reports on the implementation of that strategy, analysis of financial statements string consecutive years … so that conclusions about health bank.
With these indicators have been analyzed, they will indicate the current status and future bank forecast a relatively accurate manner.
To put it roughly, the audit only measure and compare the figures of banking activity is valid with no accounting standards, credit rating is also a health check and the bank actually concluded on the grounds they collected.
Recently, Moody’s has published a report credit ratings of 10 banks in Vietnam, he can analyze their assessment for the banks over a number of specific cases?
In banks Moody’s credit rating this year, I noticed ABBank with 2 reasons: first ABBank participate ratings by international credit and achieve results among commercial banks shares only top credit rating system joint-stock commercial bank in Vietnam.
In terms of financial strength basis, ABBank coefficient minimum capital adequacy of 10%, good credit quality with low bad debt of 1.76% under ideal group, and have adequate provision for all general provision and specific provision.
ABBank liquidity as assessed by Moody’s is pretty good, the ratio of loans / total deposits was 79%.
Especially, with the participation of foreign strategic shareholders as Maybank, IFC, ABBank improve governance according to international standards as distinguish the oversight role of the board, with the transparent criteria, protect minority shareholders.
Cautious lending strategies, flexible towards small and medium enterprises, to follow the model of retail banking … is consistent with the trends and practices of market movement.
Most importantly, the Moody’s comment on the prospects of stability target of a bank showing good health, sustainable development and able to sustain growth in the future.
The request Moody’s assessment and credit rating also shows the confidence and determination to pursue the strategic development and healthy bank ABBank transparent.
In the area of financial markets, credit rating results often have the effect of how to operate the bank sir?
Countries with developed financial markets like Thailand, Singaporre, Malaysia, most of the banks are implementing international credit ratings. The investors, depositors, bond purchases by issuing banks typically look at this assessment, which is an important foundation for strengthening their confidence in the bank because of the fact they have fewer opportunities to learn deep capital structure of bank assets.
The foreign investors, businesses often rely on these assessments is key and consult them before making a decision to cooperate with the bank.
In Vietnam, new financial market on a small scale and is in the process of restructuring the banking system, thus, many banks shy and cautious in registering international credit ratings.
However, I believe that the bank actually has form and achieved a high credit rating from the prestigious organization in the world to maintain sustainable development and achieve better business results, take advantage of opportunities as the economy deeper integration with the region and the world.