Vietnam enforces 8% capital adequacy ratio for banks from September 15
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.
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 VND879.35 trillion (US$33.3 billion), up 6.6% from the end of 2024. The five largest banks, Vietcombank, VPBank, Techcombank, BIDV, and MB, accounted for 41% of the total.
Outlook for Vietnam's banks in 2025 remains stable
The outlook for Vietnam's banks in 2025 is stable, but challenges remain, especially risks from real estate and liquidity pressure at some small-scale banks, experts said at a conference on June 11.
