SBV Moves to Replace Key Banking Circular 22 as Basel III Implementation Accelerates

Overview

The State Bank of Vietnam (SBV) convened the 6th meeting of the Basel Capital Standards Steering Committee on July 15, 2026, to discuss replacing Circular 22/2019/TT-NHNN, a key regulation on safety limits and ratios for banks. This move is part of Vietnam’s ongoing adoption of Basel III standards, which will affect major banks including Vietcombank (VCB), VietinBank (CTG), and BIDV (BID).

Key Facts

• The SBV held the 6th meeting of the Basel Capital Standards Steering Committee on July 15, 2026, in Hanoi.
• Deputy Governor Doan Thai Son chaired the meeting, attended by representatives from SBV units, commercial banks, and consulting firms KPMG, Deloitte, PwC, and Ernst & Young.
• The meeting focused on the draft circular to replace Circular 22/2019/TT-NHNN, which sets safety limits and ratios for banks and foreign bank branches.
• The new circular is part of the Basel III implementation roadmap, following Circular 14/2025/TT-NHNN on capital adequacy ratios.
• The SBV aims to finalize the draft and submit it to competent authorities for issuance.
• VCB closed at VND 58,500, CTG at VND 32,000, and BID at VND 38,800 on July 18, 2026.

What Happened

On July 15, 2026, the State Bank of Vietnam held the 6th meeting of the Basel Capital Standards Steering Committee, chaired by Deputy Governor Doan Thai Son. The meeting reviewed progress on implementing Basel III standards and discussed the draft circular to replace Circular 22/2019/TT-NHNN, which governs safety limits and ratios for banks and foreign bank branches. The SBV also considered a draft framework for applying the Internal Ratings-Based (IRB) approach under Circular 14/2025/TT-NHNN.

According to a report by Nguyen Duc Long, Director of the Credit Institution System Safety Department, the SBV has been accelerating the legal framework for Basel III, focusing on four main areas: replacing Circular 13/2018/TT-NHNN on internal control systems, replacing Circular 22/2019/TT-NHNN, implementing Circular 14/2025/TT-NHNN, and training on new regulations. The meeting emphasized the need to incorporate feedback from committee members, commercial banks, and consultants to finalize the draft circular.

Market Context

Vietcombank (VCB), VietinBank (CTG), and BIDV (BID) are among the largest banks on HOSE, with VCB closing at VND 58,500, CTG at VND 32,000, and BID at VND 38,800 on July 18, 2026. The banking sector has been under pressure from rising credit demand and potential capital shortfalls, as highlighted by recent comments from SBV officials. The replacement of Circular 22 is expected to tighten capital requirements, which could impact lending growth and profitability for these banks.

Strategic Significance

The replacement of Circular 22 represents a critical step in Vietnam’s adoption of Basel III, aligning domestic regulations with international standards. For VCB, CTG, and BID, the new circular will likely impose stricter capital adequacy and liquidity ratios, potentially constraining their ability to expand credit without raising additional capital. This could accelerate capital-raising plans, such as dividend reinvestment or rights issues, and may affect their competitive positioning relative to smaller banks with lower compliance burdens.

What to Watch

• Publication of the draft circular for public comment, expected in the coming months.
• SBV’s final issuance timeline and any transitional provisions for banks.
• Capital adequacy ratios of VCB, CTG, and BID in Q3 2026 earnings reports.
• Any capital-raising announcements from these banks to meet new requirements.
• SBV policy meetings or statements on Basel III implementation progress.