VnnNews – A private company, ‘Vietnam Credit,’ has presumed to rate the nation’s banks.
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Ta Ngoc Huu, Public Relations Manager of Vietnam Credit |
Ta Ngoc Huu, Public Relations Manager of Vietnam Credit, says the firm’s rankings are well-grounded. Talking with Dat Viet newspaper, Huu emphasized that Vietnam Credit will fight fire with fire, suing “those, who, acting on behalf of some group of interests, make biased statements.”
Dat Viet: Commercial banks say that though this is the “2009 rating report,” it is been based on data from 2008 and previous years, and so has misled the public. What would you say about that?
Ta Ngoc Huu:
DV: What standards did
Huu: We have experienced technical staff who build up criteria with reference to the international standards. The Vietnam Credit Index is developed from criteria such as each bank’s capital adequacy ratio, liquidity, business efficiency, managerial ability and experience, brand, quality, service and asset expansion – eighteen criteria in all. Our software, CRIS (the Credit Rating Information System), then provides us with the scores of every bank, ranging from 100 to 1000, which correlate with ratings from D to AAA.
We can ensure that we are not biased toward any bank when building the criteria. Nor did we contact any banks while implementing the rating project. We’ve consulted experts to make sure that our scores are consistent with international standards. In particular, we’ve paid attention to the stability and vitality of the Vietnamese banks so the scores we gave aren’t quite as strict as an international rating agency might assign.
We noted in the report that we base our ratings only on information that has been made public in accordance with the law. We also stressed that the report just reflects our own opinion and that it is just for reference.
DV: Banks believe that bank ratings should be done by State Bank of
Huu: We do not agree with the Vietnam Banking Association’s viewpoint. I don’t think there’s any document which prohibits private firms from expressing their own opinions about businesses. I’m wondering why VNBA didn’t voice its protest before, when we said we would release the bank rating report? Why did it only express opposition after the report was released?
In countries with developed market economies, credit ratings are encouraged, because the rating information is really useful as reference materials and allow banks to consider to avoid crises.
After eight years of experience working with international organizations, we believe we know our job. I should point out that currently, some Vietnamese commercial banks have hired international credit rating firms such as Moody’s and S&P to give credit ratings to them.
Vietnamese securities companies, which are also private firms, also release reports which assess the ‘health’ of banks and analyze credit risks. Why don’t banks protest their analysis?
DV: Are you worried by the threat of VNBA and many individual banks to lodge a lawsuit with the State Bank of
Huu: If we violate the laws, we will have to face the court. However, if anyone, acting on behalf of some group, makes biased statements, he will be sued by Vietnam Credit.
VietNamNet/DV
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