Circular No. 05/2021/TT-NHNN amending and supplementing certain articles of Circular No. 42/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam on ranking people's credit funds

CIRCULAR

Amending and supplementing certain articles of Circular No. 42/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam on credit rating of people's credit funds 规定信用社的评级

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law Amending and Supplementing Certain Articles of the Law on Credit Institutions dated November 20, 2017;

Decree No. 16/2017/NĐ-CP dated February 17, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of Banking Inspection and Supervision;

The Governor of the State Bank of Vietnam issues this Circular to amend and supplement certain articles of Circular No. 42/2016/TT-NHNN dated December 30, 2016 of the Governor of the State Bank of Vietnam on credit rating of people's credit funds (hereinafter referred to as Circular No. 42/2016/TT-NHNN).

Article 1. Amending and supplementing certain clauses of Circular No. 42/2016/TT-NHNN

1. Amend and supplement Clause 2, Article 3 as follows:

"2. People's credit funds shall be rated into Class A (Good), Class B (Fair), Class C (Average), and Class D (Weak) according to the provisions of Article 12 of this Circular."

2. Amending and supplementing Point d Clause 1 Article 4 as follows:

"d) Results of supervision, conclusions of inspection, and post-inspection files of people's credit funds by the Inspection and Supervision Department of the banking sector;"

3. Amending and supplementing Point a Clause 4 Article 8 as follows:

"a) Failure to submit full reports or sending reports late to the State Bank branch at provincial or centrally-administered city level (hereinafter referred to as State Bank branch) as prescribed by the State Bank from two times or more, except for one point;"

4. Amendment and supplementation of Article 13 as follows:

"Article 13. Implementing Credit Rating

1. By May 31 each year, the State Bank branch completes the credit rating of the previous year for people's credit funds within its jurisdiction.

2. The credit rating is based on the documents, information, data, and figures stipulated in Article 4 of this Circular and additional explanations and reports provided by the people's credit funds during the process of credit rating conducted by the State Bank branch."

5. Amending and supplementing Article 14 as follows:

"Article 14. Announcing Credit Rating Results

Within five working days from the completion date of the credit rating, the State Bank branch reports to the Governor of the State Bank (through the Banking Inspection and Supervision Agency) the credit rating results of people's credit funds within its jurisdiction according to Form No. 01 issued together with this Circular, and announces the credit rating results (including total points) to each people's credit fund within its jurisdiction."

6. Supplementing Articles 14a, 14b, and 14c into Chapter III as follows:

"Article 14a. Responsibilities of People's Credit Funds

1. Shall bear full responsibility for the accuracy and truthfulness of the provided documents, information, data, and figures, and have the responsibility to explain and report additional contents related to the credit rating upon request of the State Bank branch.

2. Manage the credit rating results in accordance with the regulations on protecting state secrets in the banking sector and other relevant laws.

3. Shall not provide their credit rating results to organizations or individuals outside the people's credit funds.

Article 14b. Responsibilities of State Bank Branches

1. Conduct credit ratings of people's credit funds within their jurisdiction.

2. Based on the credit rating results, manage, inspect, and supervise people's credit funds within their jurisdiction and perform other tasks as prescribed by law.

3. Manage, announce, and provide credit rating results of people's credit funds within their jurisdiction in accordance with this Circular, regulations on protecting state secrets in the banking sector, and other relevant laws.

Article 14c. Responsibilities of the Banking Inspection and Supervision Agency

1. Guide and inspect the implementation of the task of ranking people's credit funds within its jurisdiction by the State Bank branch.

2. Manage and provide the results of ranking people's credit funds in accordance with this Circular, regulations on protecting state secrets in the banking sector, and other relevant laws and regulations.

Article 2

1. Replace Table 01 promulgated together with Circular No. 42/2016/TT-NHNN with Table 01 promulgated together with this Circular.

2. Repeal Table 02 promulgated together with Circular No. 42/2016/TT-NHNN.

This Circular takes effect from December 25, 2025/.

The Director of the Office, the Head of the Banking Inspection and Supervision Agency, the Heads of units under the State Bank, and people's credit funds shall be responsible for organizing the implementation of this Circular.

Article 4. Implementation provisions

This Circular takes effect from August 1, 2021.