Tien Phong Bank and South Korean NICE Group sign an agreement to launch corporate credit rating system. -- VNS File Photo

HA NOI (Biz Hub) —The Tien Phong Commercial Joint Stock Bank (TPBank) and South Korea's NICE Group have signed a co-operation agreement for building the first internal corporate credit rating system in Viet Nam.

This system, called Credit Plus, has been the internationally acclaimed standard that is compatible with all standards and requirements of Basel II, which is a set of banking regulations put forth by the Basel Committee on Banking Supervision (BCBS), regulating finance and banking internationally.

Under the agreement signed in Ha Noi on December 15, TPBank and NICE will build the system based on the integration of modern information and technology, and a score card constructed by the statistical model method with the data of hundreds of thousands of businesses in Viet Nam.

The system will help banks to identify customers based on the probability of default.

In addition to the statistical model method applied by leading credit rating agencies in the world, the NICE Group's solution will divide customers into small groups and industry dummies to match the reality in Viet Nam.

Speaking at the signing ceremony, NICE Group Chairman Kim Kwang Soo said that they highly valued the sensitiveness of Vietnamese banks, which was needed to improve their position and expand operations in the regional market.

The project in Viet Nam will help the group to get a foothold in the potential market, then expanding its activities to the Southeast Asian region and neighbouring areas in technology and the financial infrastructure market.

The bank has striven to improve technologies and modern administration tools for its sustainable development.

NICE is the largest group in South Korea, providing credit rating solutions to commercial and investment banks, accounting for 90 per cent of the country's market share.

The group also provides several support services to financial institutions to connect with customers such as information, payment and finance, besides risk management.

It successfully launched a corporate credit rating system at the National Credit Information Centre of Viet Nam (CIC). — VNS