Hanoi, July 31, 2025. The Governor of the State Bank of Vietnam (SBV) has signed and issued Circular No. 21/2025/TT-NHNN regulating the rating of the credit institutions and the foreign bank branches (hereinafter collectively referred to as “credit institutions” or “CIs”). The Circular comprises 03 Chapters and 30 Articles, marking a significant step in strengthening the regulatory framework for the safety and soundness of the banking system.
Circular No. 21/2025/TT-NHNN builds upon the foundations of Circular No. 52/2018/TT-NHNN (as amended and supplemented in 2021), while incorporating key enhancements in line with the SBV’s goals. It aims to:
- Further improve the legal framework governing the rating of the CIs;
- Ensure consistency with the mandates and responsibilities of the relevant SBV units;
- Enhance the effectiveness of the banking supervision and the overall stability of the financial.
The new Circular is composed of 03 Chapters and 30 Articles, specifically as follows:
- Chapter I. General Provisions (06 Articles): Outlining the scope of regulation; the subjects of application; the definitions of terms; the rating principles and methods; the required documentation and data sources for rating; and the rating criteria system.
- Chapter II. Specific Provisions (18 Articles), divided into 03 Sections:
+ Section 1 on rating criteria and indicator groups, covering: Capital; Asset quality; Governance and administration; Business performance; Liquidity; Market risk sensitivity.
+ Section 2 on scoring and rating methodology, detailing: scoring methods for individual indicators and quantitative indicator group; thresholds for quantitative indicators; weights assigned to indicators; scoring methods for qualitative indicators; thresholds for qualitative indicators; scores for each criterion; weights for each criterion, quantitative and qualitative indicator groups; method of calculating the overall rating score; rating categories.
+ Section 3 on rating results, including: frequency and timing of rating approval; notification of rating results; management and use of rating results.
- Chapter III. Implementation (06 Articles): specifying the roles, responsibilities, and powers of the relevant units (the credit institutions and the foreign bank branches; the Department of Credit Institutions Supervision; the SBV regional branches; other units under the SBV); entry into force; and implementation arrangements.
This Circular will come into effect on November 1, 2025, with respect to provisions concerning rating subjects and responsibilities of the relevant entities.
Provisions relating to indicators, criteria, thresholds, weights, and scoring methodologies will apply from the 2026 rating year onwards. Accordingly, the SBV will apply these new provisions beginning in 2027, when conducting ratings for the 2026 financial year.
For rating years prior to 2026, Circular No. 52/2018/TT-NHNN will remain in effect.