Decision No. 06/2008/QD-NHNN Issuing Regulations on Categorizing Joint Stock Commercial Banks

Pursuant to …;

Issuing Regulations on Classifying Joint Stock Commercial Banks

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam 1997; the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam 2003;

Pursuant to the Law on Credit Organizations 1997; the Law Amending and Supplementing Certain Provisions of the Law on Credit Organizations 2004;

Pursuant to Decree No. 52/2003/NĐ-CP dated May 19, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Department of Commercial Banks and Non-Bank Credit Institutions,

DECISION:

Article 1. The accompanying this Decision are the Regulations on Classifying Joint Stock Commercial Banks.

Article 2. This Decision shall take effect 15 days from the date of publication in the Official Gazette and shall replace Decision No. 400/2004/QĐ-NHNN dated April 16, 2004 of the Governor of the State Bank of Vietnam promulgating Regulations on the Classification of State-owned and People's Joint Stock Commercial Banks.

Article 3. Head of the Office, Directors of the Department of Commercial Banks and Non-Bank Credit Institutions, Heads of the State Bank of Vietnam Inspectorate, Heads of relevant units under the State Bank of Vietnam, Governors of State Bank of Vietnam Branches in provinces and centrally-administered cities where joint stock commercial banks have their headquarters, Chairmen of the Boards of Management and General Directors of joint stock commercial banks are responsible for implementing this Decision./.

 

 

REGULATIONS

classification of joint stock commercial banks
(issued together with Decision No. 06/2008/QĐ-NHNN dated March 12, 2008 of

Governor of the State Bank of Vietnam

Chapter I.

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

These regulations apply to joint stock commercial banks permitted to be established and operate in Vietnam in accordance with the Law on Credit Organizations.

Article 2. Evaluation Indicators

1. Core Capital

2. Asset Quality

3. Management Capacity

4. Business Operation Results.

5. Liquidity Ability.

Article 3. Method of Evaluation and Classification

1. The evaluation and classification of joint stock commercial banks are based on the points assigned to each indicator as specified in Article 2 of these Regulations.

2. The principle for scoring is to subtract the deducted points from the maximum points for each indicator. Joint stock commercial banks that do not engage in business activities as prescribed in these Regulations will not be awarded points for the corresponding business activity indicators.

3. Data for awarding points are based on:

a) Data from the balance sheet (Level III, Level IV, Level V), statistical reports of joint stock commercial banks;

b) Data from the State Bank of Vietnam’s inspection and supervision work (remote monitoring data, Inspection Conclusions);

c) Other related documents such as Independent Audit Reports, Independent Auditors' Management Letters, Internal Audit Reports of joint stock commercial banks;

d) Data from the audited annual financial statements of joint stock commercial banks by independent auditing organizations.

4. Point Structure of Each Indicator and Total Points for Evaluation and Classification:

a) The maximum total points for evaluation and classification for a joint stock commercial bank is 100 points.

b) The point structure for each evaluation and classification indicator is as follows:

- Core Capital: Maximum points are 35, minimum points are -3;

- Asset Quality: Maximum points are 35, minimum points are 0;

- Management Capacity: Maximum points are 15, minimum points are 0;

- Business Operation Results: Maximum points are 20, minimum points are 0;

- Liquidity Ability: Maximum points are 15, minimum points are 0.

Article 4. Definitions

In this Regulation, the following terms shall be understood as follows:

1. Total Loan Balance: Includes ordinary loan balances and loan balances for payment transactions.

2. Total Non-Performing Loans: Is the total amount of loans classified as groups 3, 4, and 5 according to Clause 3, Article 1 of Decision No. 18/2007/QĐ-NHNN dated April 25, 2007 of the Governor of the State Bank of Vietnam amending and supplementing certain provisions of the Regulations on Loan Classification, Provisioning, and Utilization of Risk Reserves in Banking Activities of Credit Organizations issued pursuant to Decision No. 493/2005/QĐ-NHNN dated April 22, 2005 of the Governor of the State Bank of Vietnam or Article 7 of the Regulations on Loan Classification, Provisioning, and Utilization of Risk Reserves in Banking Activities of Credit Organizations issued together with Decision No. 493/2005/QĐ-NHNN dated April 22, 2005 of the Governor of the State Bank of Vietnam.

3. Non-Performing Loan Ratio: Is the ratio between total non-performing loans and total loan balance.

4. Core Capital includes Tier 1 capital (meeting the limit when determining Tier 1 capital) plus Tier 2 capital (meeting the limit when determining Tier 2 capital) minus amounts deducted from core capital according to Article 3 of the Regulations on Safety Ratios in the Operations of Credit Organizations issued together with Decision No. 457/2005/QĐ-NHNN dated April 19, 2005 of the Governor of the State Bank of Vietnam and Clause 3, Article 1 of Decision No. 03/2007/QĐ-NHNN dated January 19, 2007 of the Governor of the State Bank of Vietnam amending and supplementing certain provisions of the Regulations on Safety Ratios in the Operations of Credit Organizations issued together with Decision No. 457/2005/QĐ-NHNN dated April 19, 2005 of the Governor of the State Bank of Vietnam.

5. Shareholders' Equity: Is the item reflected on the annual balance sheet for classification purposes of joint stock commercial banks audited by an independent auditing organization.

6. Pre-Tax Profit: Is the item reflected on the annual operating results report for classification purposes of joint stock commercial banks audited by an independent auditing organization. Pre-tax profit equals income from business operations minus total operating costs and credit risk reserves provisionally increased during the year and plus credit risk reserve reversals during the year.

In cases where joint stock commercial banks have not fully provided for credit risk reserves, the pre-tax profit item on the annual operating results report needs to be adjusted to deduct the shortfall in credit risk reserve provisions according to the Inspection Conclusion of the State Bank of Vietnam and/or the Independent Auditor's Report, Management Letter to perform calculations of related indicators and classify joint stock commercial banks.

7. Average Shareholders' Equity is calculated using the following formula:

                         

Where:

+ Y-bar is the average shareholders' equity for the classification year;

Y0 is the equity at December 31 of the year immediately preceding the evaluation year (or January 1 of the evaluation year), reflected on the Balance Sheet at December 31 of the year immediately preceding the evaluation year, which has been audited by an independent auditing organization.

Y1, Y2, Y3 are the equity levels respectively on March 31, June 30, and September 30 of the evaluation year.

Y4 is the equity at December 31 of the evaluation year, reflected on the Balance Sheet at December 31 of the evaluation year, which has been audited by an independent auditing organization.

8. Profitable Assets: The total of asset items "have" that have the ability to generate income for credit institutions at the end of December of the evaluation year, including the following items on the consolidated Balance Sheet audited by an independent auditing organization of joint-stock commercial banks: Cash, gold deposits with other credit institutions and loans to other credit institutions; Trading securities, customer loans; investment securities; Long-term investments; Investment real estate.

9. Off-balance sheet commitments include: guarantees, acceptance for payment, and unconditional irrevocable loan commitments with specific execution dates.

10. The ratio reflecting the quality of off-balance sheet commitments is the ratio between the total balance of off-balance sheet commitments groups 3, 4, and 5 as stipulated in Clause 1, Clause 3 Article 1 of Decision No. 18/2007/QD-NHNN dated April 25, 2007 or Article 7 of the Provisions on Loan Classification, Provisioning and Utilization of Risk Reserves for Credit Activities in Banking Operations of Credit Institutions issued together with Decision No. 493/2005/QD-NHNN dated April 22, 2005 of the Governor of the State Bank of Vietnam divided by the total balance of off-balance sheet commitments.

11. On-balance sheet investments include the following items: trading securities, investment securities, and long-term equity investments.

12. Materiality: A term used to express the importance of information (an accounting figure) in financial statements. Information is considered material if its absence or lack of accuracy would affect the decisions of users of financial statements. (Vietnamese Auditing Standard No. 320 issued together with Decision No. 28/2003/QD-BTC dated March 14, 2003 of the Ministry of Finance).

Chapter II.

SPECIFIC PROVISIONS

Section 1

RATING CRITERIA SCALE

Article 5. Capital Adequacy: Maximum score of 15 points, minimum score of -3 points

1. Joint-stock commercial banks achieving a maximum of 15 points for capital adequacy must meet the following conditions:

a) Registered capital in the evaluation year is not less than the statutory capital requirement.

b) Ensuring capital safety, specifically:

- The minimum capital adequacy ratio in the evaluation year reaches the minimum level of 8% as prescribed by the State Bank of Vietnam;

- Using registered capital in accordance with the regulations of the State Bank of Vietnam

c) Ensuring the orientation to encourage effective capital increase as directed by the State Bank of Vietnam.

2. Deductions: Maximum of 18 points

a) Registered capital is insufficient to meet the statutory capital requirement: deduct 5 points.

b) Failure to ensure capital safety: maximum deduction of 8 points

- Minimum capital adequacy ratio is less than 8%: deduct 4 points, when violating one of the following cases:

+ The average minimum capital adequacy ratio during the evaluation year reaches 8% or higher but the minimum capital adequacy ratio of one or more months within the year is less than 8%;

+ The average minimum capital adequacy ratio during the evaluation year is less than 8%.

- Using registered capital not in accordance with the regulations of the State Bank of Vietnam: deduct 4 points, not violating one of the following cases:

+ Violating current regulations on limits on capital contribution and share purchases of the State Bank of Vietnam (must be stated in the Conclusion of the Inspection of the State Bank of Vietnam Branch in the province or city where the joint-stock commercial bank is headquartered, the Conclusion of the Inspection of the State Bank of Vietnam, the Management Letter of the independent auditing organization);

+ Operating at a loss and without reserves but still distributing dividends to shareholders (using registered capital);

+ Purchasing fixed assets exceeding 50% of own capital;

+ Other violations in the use of registered capital.

c) Failure to ensure the orientation to encourage effective capital increase as directed by the State Bank of Vietnam: maximum deduction of 5 points

(i) The average minimum capital adequacy ratio in the evaluation year reaches above 8% and there is no month in the evaluation year below 8%, while the average pre-tax profit margin on equity is from 14% to under 17%: deduct 2 points.

(ii) Joint-stock commercial banks not falling into the following categories: (1) The average minimum capital adequacy ratio in the evaluation year reaches above 8% and there is no month in the evaluation year below 8%, while the average pre-tax profit margin on equity is 17% or higher; (2) the condition stipulated in Point c.(i) Clause 2 of this Article: deduct 5 points.

Article 6. Asset quality: Maximum score of 35 points, minimum score of 0 points

1. Quality of loans and advances to customers and interbank loans: Maximum score of 20 points, minimum score of 0 points for joint-stock commercial banks with the balance of loans and advances to customers and interbank loans less than 50% of total assets; and maximum score of 25 points, minimum score of 0 points for joint-stock commercial banks with the balance of loans and advances to customers and interbank loans accounting for 50% or more of total assets.

a) Joint-stock commercial banks achieving the maximum score on the loan and advance quality indicator to customers and interbank loans must ensure:

- Non-performing loan ratio not exceeding 3%;

- Compliance with the State Bank of Vietnam's regulations on loan classification, provision establishment, and risk management.

b) In cases where joint-stock commercial banks fail to meet any of the conditions set out in Point a Clause 1 of this Article, they will be deducted points as follows:

- Non-performing loan ratio from 3% to 5%: Deduct 10 points for joint-stock commercial banks with the balance of loans and advances to customers and interbank loans less than 50% of total assets; or deduct 13 points for joint-stock commercial banks with the balance of loans and advances to customers and interbank loans accounting for 50% or more of total assets;

- Non-performing loan ratio from 5% to 10%: Deduct 15 points for joint-stock commercial banks with the balance of loans and advances to customers and interbank loans less than 50% of total assets; or deduct 19 points for joint-stock commercial banks with the balance of loans and advances to customers and interbank loans accounting for 50% or more of total assets;

- Non-performing loan ratio over 10%, or failure to comply with the State Bank of Vietnam's regulations on loan classification, provision establishment, and risk management leading to significant impact on the accuracy and fairness of the loan and advance quality indicator to customers and interbank loans in the audited financial statements of the joint-stock commercial bank for the year of ranking assessment (incorrect loan classification, insufficient provision establishment leading to a qualified opinion by the independent auditor reflected in the Management Letter, Independent Auditor's Report or the joint-stock commercial bank being administratively penalized by the State Bank of Vietnam reflected in the Inspection Conclusion of the State Bank of Vietnam for the year of ranking assessment): Deduct 20 points for joint-stock commercial banks with the balance of loans and advances to customers and interbank loans less than 50% of total assets; or deduct 25 points for joint-stock commercial banks with the balance of loans and advances to customers and interbank loans accounting for 50% or more of total assets.

2. Quality of investment items: Maximum score of 5 points, minimum score of 0 points.

a) Joint-stock commercial banks achieving the maximum score of 5 points on the investment quality indicator must ensure that the ratio of securities impairment provisions to the total balance of investment items on the balance sheet does not exceed 1%. Otherwise, they will be deducted 5 points.

b) This clause does not apply to joint-stock commercial banks with the balance of loans and advances to customers and interbank loans accounting for 50% or more of total assets.

3. Structure of on-balance-sheet assets: Maximum score of 5 points, minimum score of 0 points.

a) On-balance-sheet assets generating income of 75% or more of total on-balance-sheet assets: 5 points.

b) On-balance-sheet assets generating income below 75% of total on-balance-sheet assets, deducting up to 5 points:

- From 65% to under 75%: Deduct 2 points;

- From 50% to under 65%: Deduct 3 points;

- Below 50%: Deduct 5 points.

4. Quality of off-balance-sheet commitments: Maximum score of 5 points, minimum score of 0 points.

a) Joint-stock commercial banks achieving the maximum score of 5 points on the off-balance-sheet commitment quality indicator must ensure:

- The ratio reflecting the quality of off-balance-sheet commitments not exceeding 3%;

- Compliance with the State Bank of Vietnam's regulations on loan classification, provision establishment, and risk management for off-balance-sheet commitments.

b) In cases where joint-stock commercial banks meet any of the conditions set out in Point a Clause 1 of this Article, they will be deducted points as follows:

- The ratio reflecting the quality of off-balance-sheet commitments from 3% to 5%: Deduct 3 points;

- The ratio reflecting the quality of off-balance-sheet commitments over 5% or failure to comply with the State Bank of Vietnam's regulations on loan classification, provision establishment, and risk management for off-balance-sheet commitments leading to significant impact on the accuracy and fairness of the off-balance-sheet commitments item in the audited financial statements of the joint-stock commercial bank for the year of ranking assessment (insufficient provision establishment leading to a qualified opinion by the independent auditor reflected in the Management Letter, Independent Auditor's Report or the joint-stock commercial bank being administratively penalized by the State Bank of Vietnam reflected in the Inspection Conclusion of the State Bank of Vietnam for the year of ranking assessment): Deduct 5 points.

Article 7. Governance Capacity: Maximum score of 15 points, minimum score of 0 points.

1. Joint-stock commercial banks achieving a maximum score of 15 points must meet the following conditions:

a) The number of members of the Board of Directors and the Supervisory Board complies with the regulations.

b) Internal rules are fully established, standardized, and correctly implemented.

c) The internal audit and inspection system is commensurate with the scale of the bank and operates effectively, ensuring that significant risks are continuously identified, measured, inspected, and controlled.

d) Members of the Board of Directors, the Supervisory Board, and the Management Board possess competence, unity, legal awareness, responsibility, and properly perform their duties and powers in managing, supervising, and operating joint-stock commercial banks.

đ) Ensuring the State Bank of Vietnam's regulations on shareholders, shares, and stocks.

2. In cases where joint-stock commercial banks fail to meet any of the conditions stipulated in Clause 1 of this Article, they will be deducted points as follows:

a) Joint-stock commercial banks will be deducted 3 points if they fail to meet any of the following conditions:

- Insufficient number of members of the Board of Directors and the Supervisory Board according to the State Bank of Vietnam's regulations and the charter of the joint-stock commercial bank;

- Failure to establish and standardize internal rules regarding the operations of the Board of Directors, the Supervisory Board, and the Management Board, internal control, and other necessary rules for the operation of the joint-stock commercial bank (credit, guarantee, accounting, and other business activities) or having comments from the State Bank of Vietnam's Inspectorate (in the Inspectorate's Conclusion during the year of evaluation and classification) or independent auditors (in the Independent Auditor's Report, Management Letter for the year of evaluation and classification) about the inefficiency of the internal procedures leading to limitations in inspection and auditing processes.

b) Weak internal audit and inspection systems, ineffective operations: deduct 4 points if there is any of the following manifestations:

- Regarding organizational structure, the internal audit department is not directly subordinate to and does not receive direct guidance from the Supervisory Board, and the salary, bonus, and responsibility allowance of the internal audit department is determined by the Management Board (General Director, Deputy General Director of the joint-stock commercial bank);

- The person in charge of the internal audit department lacks professional qualifications (at least bachelor's degree) in Finance-Banking or Accounting-Audit, or has less than three years of experience in the financial banking field;

- The joint-stock commercial bank fails to issue formal regulations on the internal audit process applicable throughout the entire system or the issued internal audit process is ineffective (internal audit findings are incomplete, inconsistent with the Independent Auditor's Report and the State Bank of Vietnam's Inspectorate Conclusion, affecting the material truthfulness and reasonableness of the Financial Statements and compliance with legal regulations of the bank).

c) Failing to meet the conditions stipulated in point d of Clause 1 of this Article: deduct up to 6 points:

- Internal disunity: deduct 3 points;

- There are members of the Board of Directors, the Supervisory Board, and the Management Board who violate laws and regulations of the State Bank of Vietnam (violations under Articles 77 and 78 of the Law on Credit Institutions), failing to properly perform their duties and powers in managing, supervising, and operating joint-stock commercial banks, especially in directing the implementation of regulations on bank operational safety and reporting requirements applicable to credit institutions of the State Bank of Vietnam: deduct 3 points.

d) Violating regulations on shareholders, shares, and stocks: deduct 2 points when violating any of the following situations:

+ Insufficient number of shareholders according to current regulations on shareholders, shares, and stocks and the paid-in capital of joint-stock commercial banks issued by the Governor of the State Bank of Vietnam;

+ Violating any of the following contents: Incomplete shareholder records, inadequate representation, violation of provisions on sources of contributed capital and shareholding limits stipulated in current regulations on shareholders, shares, and stocks and the paid-in capital of joint-stock commercial banks issued by the Governor of the State Bank of Vietnam;

+ Violating any of the following contents: Issuance of shares and management of shareholder records not complying with current regulations on shareholders, shares, and stocks and the paid-in capital of joint-stock commercial banks issued by the Governor of the State Bank of Vietnam.

3. In cases where joint-stock commercial banks are currently placed under special supervision: assign 0 points for governance, supervision, and management indicators.

Article 8. Business operation results: Maximum score 20 points, minimum score 0 points

1. Business operation results: maximum 15 points

a) Business operation results with profit, maximum score 15 points:

- Pre-tax profit to average equity ratio reaching 17% or more: 15 points;

- Pre-tax profit to average equity ratio reaching from 14% to under 17%: 13 points;

- Pre-tax profit to average equity ratio reaching from 10% to under 14%: 10 points;

- Pre-tax profit to average equity ratio reaching from 5% to under 10%: 8 points;

- Pre-tax profit to average equity ratio below 5%: 5 points.

b) Business operation results without profit during the period: 0 points

2. Bonus points from service activities: maximum 5 points

a) Service revenue ratio in total income: 3 points

- Reaching 8% or more: 3 points;

- Reaching from 2% or more to under 8%: 1 point;

- Below 2%: 0 points.

b) Net income ratio from service activities in pre-tax profit: 2 points.

- Reaching 30% or more: 2 points;

- Reaching from 14% to under 30%: 1 point;

- Below 14%: 0 points.

Article 9. Liquidity capacity: Maximum score 15 points, minimum score 0 points

1. Immediate payment ability = Immediate payable assets / Immediate payable liabilities:

a) Joint-stock commercial banks ensuring the liquidity coverage ratio as prescribed by the State Bank shall be awarded the maximum score of 12 points.

b) Joint-stock commercial banks failing to ensure the liquidity coverage ratio as prescribed by the State Bank shall be penalized as follows:

- Violating once the requirement for ensuring the liquidity coverage ratio: deduct 5 points;

- Violating multiple times leading to the State Bank issuing a reminder letter or administrative penalty against the joint-stock commercial bank for violating the regulation on ensuring the liquidity coverage ratio: deduct 12 points.

2. Maximum ratio of short-term capital used for medium and long-term loans: Implemented according to the regulations of the State Bank.

a) Not violating the requirement for ensuring the maximum ratio of short-term capital used for medium and long-term loans: 3 points.

b) Violating once the requirement for ensuring the maximum ratio of short-term capital used for medium and long-term loans: deduct 2 points.

c) Violating multiple times the requirement for ensuring the maximum ratio of short-term capital used for medium and long-term loans: deduct 3 points.

3. The evaluation and classification of this indicator shall be based on the monthly/daily average data as stipulated in the reporting and statistical system of the State Bank.

Section 2. CLASSIFICATION

Article 10. Scoring

The total score of joint-stock commercial banks is calculated as the sum of scores of each indicator as prescribed in Articles 5, 6, 7, 8, and 9 of this Regulation.

Article 11. Classification of joint-stock commercial banks

1. Joint-stock commercial banks classified as Class A have a total score of 80 points or more and each indicator score as prescribed in Articles 5, 6, 7, 8, and 9 of this Regulation is not less than 65% of the maximum score of each indicator.

2. Joint-stock commercial banks classified as Class B have a total score of 60 points to 79 points and each indicator score as prescribed in Articles 5, 6, 7, 8, and 9 of this Regulation is not less than 50% of the maximum score of each indicator or have a total score higher than 79 points but have at least one indicator score between over 50% to under 65% of the maximum score of that indicator.

3. Joint-stock commercial banks classified as Class C have a total score of 50 points to 59 points and each indicator score as prescribed in Articles 5, 6, 7, 8, and 9 of this Regulation is not less than 45% of the maximum score of each indicator; or have a total score higher than 59 points but have at least one indicator score between over 45% to under 50% of the maximum score of that indicator.

4. Joint-stock commercial banks classified as Class D have a total score below 50 points; or have a total score higher than 50 points but have at least one indicator score lower than 45% of the maximum score of that indicator.

Article 12. Time for Conducting Rating and Classification

1. The data for rating and classification shall be based on the officially audited accounting figures of the year under review of joint-stock commercial banks, audited by independent auditing organizations. For indicators related to banking operation safety, the data for rating and classification shall comply with the current information reporting system. The Management Capacity indicator (Article 7) shall be evaluated for the entire fiscal year.

2. Time for Reviewing, Rating, and Classifying:

a) By no later than May 10 of the following year, each joint-stock commercial bank shall self-rate and classify and submit it to the State Bank of Vietnam Branch in the province or centrally-administered city where its headquarters is located.

b) By no later than May 31 of the following year, the State Bank of Vietnam Branch in the province or centrally-administered city shall provide comments on the self-rating and classification results of joint-stock commercial banks headquartered in their respective areas and compile reports on the rating and classification results to submit to the State Bank of Vietnam (State Bank Inspectorate).

c) In June each year, the Governor of the State Bank of Vietnam shall approve the rating and classification results of joint-stock commercial banks.

Chapter III

IMPLEMENTATION

Article 13. Responsibilities of Joint-Stock Commercial Banks

1. Provide truthful and accurate data in accordance with the current information reporting system. If inaccurate reported data of joint-stock commercial banks are discovered after classification, the Chairman of the Board of Directors, the Head of the Supervisory Board, and the General Director of the joint-stock commercial bank shall bear full responsibility. The State Bank of Vietnam will re-publish the rating and classification of joint-stock commercial banks.

2. Self-rate and classify according to the time specified and in accordance with the form prescribed in Appendix 1 attached to this Regulation.

Article 14. Responsibilities of the State Bank of Vietnam Branches in Provinces and Centrally-Administered Cities Where Joint-Stock Commercial Banks Are Located

1. Urge joint-stock commercial banks to submit self-rating and classification reports within the stipulated timeframe.

2. Verify the accuracy of the data provided by joint-stock commercial banks.

3. Provide opinions on the self-rating and classification results of joint-stock commercial banks in their respective areas in accordance with regulations.

4. Submit the following documents to the State Bank Inspectorate for the purpose of evaluating and classifying joint-stock commercial banks:

- Self-rating and classification report of joint-stock commercial banks in accordance with the form prescribed in Appendix 1;

- Report on the verification of the data provided by joint-stock commercial banks and opinions on the self-rating and classification results of joint-stock commercial banks in their respective areas.

Article 15. Responsibilities of Units Under the Central State Bank

1. Department of Banks and Non-Bank Financial Institutions: Guide joint-stock commercial banks in implementing this Regulation.

2. State Bank Inspectorate: Direct the implementation of the rating and classification of joint-stock commercial banks in accordance with the form prescribed in Appendix 1 attached to this Regulation; serve as the coordinating unit to work with relevant Departments at the Central State Bank to review and submit the rating and classification results of joint-stock commercial banks to the Governor of the State Bank of Vietnam for approval; publish the official classification results of joint-stock commercial banks on the website of the State Bank of Vietnam; propose measures to handle joint-stock commercial banks classified as C and D.