GUIDING THE FINANCIAL SUPERVISION AT SOME STATE CREDIT INSTITUTIONS
On January 31, 2018, the Ministry of Finance issued the Circular No. 12/2018/TT-BTC guiding the financial supervision, evaluation of the efficiency of state capital investment in wholly state-owned credit institutions and credit institutions of which more than 50% charter capital is held by the State.
In accordance with the guidance of this Circular, the efficiency of state capital invested in a credit institution shall be evaluated according to the levels of fulfillment (A, B, C) of criteria for evaluation and rating applied to the credit institution as required by the State Bank of Vietnam.
The criteria include gross revenue; Return on equity (ROE); bad debt ratio and loss ratio and provision of public products and services (if any).
This Circular takes effect on March 19, 2018 and applies from the fiscal year 2018.
