https://gtjai.com.vn/wp-content/uploads/2025/07/EN-GTJASVN_Flash-Note_Circular-142025-on-CAR_21.7.2025.pdf

Circular 14/2025/TT-NHNN Marks a Strategic Step Toward Capital Adequacy and Systemic Stability in the Banking Sector.

Circular 14/2025/TT-NHNN reflects the State Bank of Vietnam (SBV)’s strategic direction in shaping and stabilizing monetary policy while ensuring systemic safety within the banking sector. Effective from September 15, 2025, the circular provides a roadmap and specific guidance for commercial banks in applying capital adequacy ratio calculations and related regulatory requirements.

Starting from January 1, 2030, this circular will replace prior relevant regulations, including Circular 41/2016/TT-NHNN, Circular 16/2022/TT-NHNN, and Circular 22/2023/TT-NHNN.

Circular 14/2025 introduces a more detailed legal framework regarding the capital adequacy requirements for credit institutions. Key highlights include:

1. More specific guidance on capital adequacy ratios, including the Capital Conservation Buffer (CCB) and the Countercyclical Capital Buffer (CCyB), aligning more closely with international standards under Basel III.
2. Revised risk weights for receivable assets, with changes in the risk weights for sectors such as social housing, small and medium-sized enterprises (SMEs), and real estate business activities—intended to improve capital flows into key areas of the economy.
3. New requirements for credit institutions to maintain capital adequacy ratios when distributing cash dividends, aiming to strengthen financial resilience and responsible capital management.