On December 3^rd, 2013 and December 5^th, 2013, PCB, in cooperation with the experts from CRIF–PCB’s strategic partner, organized the second Credit Scoring Workshopin Ho Chi Minh city and Hanoi. The first workshop held at the end of July 2013 attracted a lot of attention from banks’s leaders and risk management officers.

Theworkshop in Ho Chi Minh city on December 3^rd

With the success of the first workshop, the second was organized to confirm PCB’s target in offering value added services to the market in order to serve foreign banks, local banks and financial companies.

During the workshop, Mr. Davide Michele Meo – Direct International Markets Manager – Credit Bureau Services and Mr. Davide Capuzzo – Director of Analytics Division presented how to build a credit-scoringmodel whichis suitable to Vietnamese market, in order to bring the benefits to financial instituitions. Although many banks have built internal credit scoring model on their own, the use of a common scale – Glocal Score for banks will bring more positive results. CRIF’s idea is to create 3 types of score-cards to meet the market’s demands, they are generic scorecard specific for loans (personal and consumer), generic scorecard for non-installment loans (credit card and overdraft), and generic scorecard for small business.Banks are encouraged to participate in the testing activity to havethe general viewon the market, therefore, they can decide whether theirexisting products are suitable or not, which the risks of launching a new product to the market are, and the distribution of products within a group of banks. Those information are useful for banks to determine their position in the financial market.

Theworkshop in Hanoi on December 5^th

At the workshop, the experts presented the Internal Rating Systems, which comply with Basel II. Building these systems not only meansas rating but also changing the whole bank’s working process, thereby helping them to save costs, improving the management and gaining capital efficiency. The State Bank of Vietnam set the year of 2015 as thedeadline for some banks to implement Basel II. With experiencesat international markets, CRIF believes that in the future the State Bank of Vietnam will require banks to comply more withBasel II. CRIF is ready to support banks in Vietnam by consulting in their development and validation internal rating systems, or through PCB data to improve the performance of internal rating systems and provide benchmarks for the credit retail market.