Situation of deploying credit rating of commercial banks in Vietnam

Abstract

Credit rating is considered a measure of performance, measure the level of risk and prospects for development of the object being evaluated. In the process of economic integration, credit rating plays a very important role in accessing capital, especially from outside the country. The level of credit ratings directly affects the cost of capital. With institutions participating in the capital markets such as commercial banks, financial companies, insurance companies ... the ratings will affect certain levels of credit and prestige capital mobilization in the market. The paper will present an overview of the concept and role of credit rating and review as well as the effectiveness of credit rating development by commercial banks in Vietnam.