Tien Phong Commercial Joint Stock Bank ( TPBank ) announced that it has completed full compliance with Circular 14 of the State Bank of Vietnam (SBV) on capital adequacy ratio, according to the Standard Method (SA). At the same time, TPBank has registered to implement the Internal Rating Method (IRB) according to the provisions of this Circular.
This is the next step in the long-term journey that TPBank has been pursuing since 2016, towards approaching the highest international practices in risk management and capital adequacy, with the goal of becoming the first bank in Vietnam to fully complete Circular 14 according to both SA methods by September 2025 and IRB by 2027.
TPBank has completed full compliance with Circular 14 of the State Bank of Vietnam (SBV) on capital adequacy ratio, according to the standard method (SA) (Photo: TPBank).
TPBank is ready for Circular 14
Immediately after Circular 14 was issued, TPBank proactively reviewed all new requirements related to capital calculation methods, organizational structure, data systems and information technology platforms.
The Bank has completed the entire internal process system, issued documents guiding the calculation, management, supervision and disclosure of information related to the capital adequacy ratio (CAR), and organized internal audits to ensure full and consistent compliance.
Based on the actual implementation results, TPBank has reported to the State Bank of Vietnam on the completion of all requirements under the SA method prescribed in Circular 14 and registered to apply this method from the effective date of the circular (September 15). At the same time, the bank has also registered to implement the roadmap for implementing the IRB method, with the implementation period of two years according to the guidance of the State Bank of Vietnam.
Previously, within the framework of the Basel III/Basel III Reforms Project, TPBank applied SA and simultaneously developed an internal rating model to prepare for IRB implementation.
The Bank has developed a tool to calculate important indicators according to Basel III standards such as CAR, Leverage Ratio (LR), Short-Term Liquidity Ratio (LCR), Net Stable Funds Ratio (NSFR) and a system to calculate market risk capital according to Basel III Reforms (FRTB). This entire process was independently reviewed by KPMG Tax and Consulting LLC.
Currently, TPBank maintains its capital adequacy ratio (CAR) at nearly 14%, significantly higher than the minimum threshold of 10.5% prescribed by Circular 14, including the capital preservation buffer.
In addition, the short-term liquidity coverage ratio (LCR) reached over 104% and the net stable funding ratio (NSFR) reached over 124%, both far exceeding the minimum requirement of 100%.
The leverage ratio is also currently maintained at around 8%, many times higher than the minimum requirement of 3, affirming the risk management capacity and solid financial foundation that TPBank possesses, enhancing its resilience to fluctuations in the financial environment.
TPBank is gradually moving towards the goal of becoming a bank that fully complies with Circular 14 (Photo: TPBank).
Firmly develop sustainably, build trust and international position
TPBank being the first bank in Vietnam to announce the completion of Basel III and IFRS9 implementation from 2021 is not only a technical milestone, but also a testament to a development strategy that focuses on capital safety and risk management.
Building on that foundation, completing the application of Circular 14 according to SA, while proactively implementing the roadmap according to IRB, brings TPBank clear strategic advantages.
First is the ability to control risks at a deeper level, thanks to a sufficiently large capital buffer and an effective liquidity management system – helping banks increase their resistance to unexpected economic fluctuations.
At the same time, building an internal model according to IRB allows TPBank to measure and quantify risks more accurately, thereby optimizing capital efficiency across the system.
In addition, transparency in information disclosure and full compliance with international standards have contributed to strengthening the confidence of investors, partners and financial markets.
Mr. Nguyen Hung, General Director of TPBank, shared: “We clearly identify that compliance with Circular 14 is not only to meet legal requirements, but also a strategic step demonstrating the mettle and management capacity of a bank.
TPBank has chosen a more difficult path, requiring careful preparation in terms of capital, data, technology and human resources, but we believe that this path will bring real sustainability. Today's achievement is an important stepping stone for us to continue our journey of improving risk management capacity, strengthening financial strength and gradually affirming our position in the region."
During the 2025-2027 period, TPBank will urgently implement the plan to apply the IRB method according to the guidance of the State Bank, moving towards full compliance with Circular 14 by September 15, 2027.
Along with that, TPBank is also promoting the continued implementation of the Internal Liquidity Adequacy Assessment Process (ILAAP) according to the standards of the European Central Bank (ECB) and the Project to Upgrade Liquidity Risk and Interest Rate Risk Management (IRRBB).
Source: https://dantri.com.vn/kinh-doanh/tpbank-tien-phong-dat-chuan-basel-iii-20251006112217372.htm
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