SOME ISSUES IN NEED OF IMPROVEMENT IN THE METHOD OF INTERNAL CREDIT RATINGS FOR BUSINESS CUSTOMERS AT THE JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OFVIETNAM

Abstract

The paper examines the system of internal credit ratings at the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), which focuses on identifying and analyzing issues that need improvement in the method internal credit ratings for business customers of the bank. The results show that although the system of internal credit ratings of the bank has been effectively applied ever since 2006, there till exist five fundamental issues that need to be improved in terms of methods. These are problems related to the method of classifying economic disciplines, determining the scales and types of ownership, bases for selecting criteria and weights as well as the method of evaluating financial and non-financial targets.