SBV Finalizes Basel III Circular Replacement: ACB, VCB, BID, CTG, TCB, MBB, VIB React

Overview

The State Bank of Vietnam (SBV) is completing the final steps to replace Circular 22/2019/TT-NHNN, a key regulation governing safety limits and ratios for banks, aligning with Basel III standards. Major banks including ACB, BID, CTG, VCB, TCB, MBB, and VIB participated in a risk management forum on July 21, 2026, to discuss the draft. The new circular will require banks to maintain higher capital adequacy ratios and more robust risk management frameworks, impacting their operations and profitability.

Key Facts

• SBV is finalizing a draft circular to replace Circular 22/2019/TT-NHNN on safety limits and ratios.
• The draft aims to align Vietnamese banking regulations with Basel III standards.
• The announcement was made at the Annual Risk Committee Forum on July 21, 2026, in Hanoi, co-organized by VNBA and Vietcombank.
• TS. Dao Minh Tu, Vice Chairman of VNBA, highlighted that the new circular is a key legal basis for approaching Basel III.
• SBV has already issued Circular 14/2025/TT-NHNN on capital adequacy ratios and Circular 83/2025/TT-NHNN on internal control systems.
• Banks participating in the forum include VietinBank (CTG), Vietcombank (VCB), BIDV (BID), Techcombank (TCB), MB (MBB), ACB, and VIB.
• The draft circular is currently in the consultation phase.

What Happened

On July 21, 2026, the Risk Committee under the Vietnam Banks Association (VNBA) in coordination with Vietcombank held the Annual Risk Committee Forum in Hanoi. The forum focused on enhancing bank risk management in the context of digital transformation and international standards integration.

TS. Dao Minh Tu, Vice Chairman and General Secretary of VNBA, stated that the banking sector is undergoing strong transformation due to digitalization, AI, big data, and cloud computing. He emphasized that the amended Law on Credit Institutions 2024 requires stronger risk governance. SBV has already issued Circular 14/2025 on capital adequacy and Circular 83/2025 on internal controls, and is now consulting on a draft to replace Circular 22/2019. The new circular will gradually bring Vietnamese banking operations closer to Basel III standards.

Market Context

On July 22, 2026, ACB closed at VND 22,000, down 1.53% on volume of 24.2 million shares. VCB fell 1.76% to VND 56,000, and CTG dropped 1.46% to VND 30,000. BID last traded at VND 36,800 on July 21. The banking sector has been under pressure from rising credit costs and regulatory changes. The new circular may increase compliance costs but also enhance long-term stability and investor confidence.

Strategic Significance

The replacement of Circular 22/2019 with Basel III-aligned rules represents a structural shift for Vietnamese banks. Higher capital and liquidity requirements will likely constrain dividend payouts and near-term profitability, but will strengthen balance sheets and reduce systemic risk. Banks with stronger capital positions, such as ACB and VCB, may have a competitive advantage. The move also supports Vietnam’s goal of upgrading its stock market to emerging market status, as international investors favor robust regulatory frameworks.

What to Watch

• Final issuance date of the new circular and its effective date.
• Specific changes to capital adequacy ratios (CAR), leverage ratios, and liquidity coverage ratios (LCR).
• Banks’ capital raising plans (rights issues, bonds) to meet new requirements.
• Q3 2026 earnings reports for impact on net interest margins and provisioning.
• SBV’s next policy meeting for any complementary measures.