From September 15, commercial banks and foreign bank branches must maintain a minimum capital adequacy ratio (CAR) of 8%, including at least 4.5% in Tier 1 core capital and 6% in Tier 1 capital.

Vietnam to enforce 8% capital adequacy ratio for banks from September 15.

The requirement is set out in Circular No. 14/2025/TT-NHNN issued by the State Bank of Vietnam, which also obliges banks with subsidiaries to comply with consolidated CAR standards in addition to individual ones.

The circular further stipulates that cash dividend payments are permitted only when banks have fully met the new capital requirements, pushing lenders to reinforce their capital base before profit distribution.

In anticipation, many banks have recently moved to raise charter capital through share issuances, profit retention, or issuing eligible debt instruments to bolster Tier 2 capital.

As of the end of June, financial statements from 29 banks showed total charter capital of the sector at 879.35 trillion VND (33.3 billion USD), up 6.6% from the end of 2024. The five largest banks, Vietcombank, VPBank, Techcombank, BIDV, and MB, accounted for 41% of the total.

State bank launches tool to facilitate green finance

The State Bank of Viet Nam (SBV) on May 21 launched the Environmental and Social Risk Management System (ESMS) Handbook in Credit Granting Activities.

Banks hike interest rates as deposit growth slows

Twelve banks have raised their deposit rates by up to 1 percentage point in the last four weeks amid a jump in credit demand.

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.

 

Banks in Bac Giang temporarily stop collecting interest, reduce interest rates for customers affected by storm No. 3

BAC GIANG - To support customers who are borrowing capital to overcome the consequences of storm No. 3, at this time, some banks in the northen province of Bac Giang have implemented solutions such as temporarily pausing interest collection and reducing interest rates for affected customers.

PM works with joint stock commercial banks on solutions to boost socio-economic growth

Prime Minister Pham Minh Chinh on September 21 chaired a meeting between Cabinet members and leaders of 13 joint stock commercial banks to seek measures to promote national socio-economic development.