Collection of data and information about borrowers and information technology of credit institutions in Vietnam

Collection of data and information about borrowers and information technology of credit institutions in Vietnam specified in Article 4 of Circular 11/2021/TT-NHNN, specifically as follows:

1. Credit institutions or foreign bank branches shall take measures to regularly collect and exploit information and data about borrowers, including information from the National Credit Information Center of Vietnam (CIC) and credit information companies, in accordance with laws to:

a) Set up, revise and update their intracorporate credit rating systems, internal rules and regulations on credit extension, management of debts/loans and risk provisioning policies;

b) Monitor and evaluate the financial situation and solvency of customers after being ranked according to their intracorporate credit rating systems, take appropriate risk management and credit quality management measures;

c) Have the option of classifying debts, off-balance sheet commitments, make provision for risks and use risk provisions in accordance with this Circular.

2. Each credit institution and foreign bank branch must set up an information technology system available for use throughout their entire operations to meet the requirements for management of data and information related to customers, operate and manage their internal credit rating system, manage risks, classify debts, off-balance sheet commitments, set up and use risk provisions.

Best Regards!