Recently, Tien Phong Commercial Joint Stock Bank (TPBank, HOSE: TPB) officially announced its full compliance with Circular 14/2025/TT-NHNN on capital adequacy ratios, following the Standardized Approach (SA). Simultaneously, TPBank has registered to implement the Internal Ratings-Based (IRB) method as stipulated in this Circular. This marks another significant step in TPBank’s long-term journey, which began in 2016, toward aligning with the highest international standards in risk management and capital safety. The bank aims to become the first in Vietnam to fully comply with Circular 14 under both SA by September 2025 and IRB by 2027.
Capital Strength Beyond Standards – TPBank Ready for Circular 14
Immediately after the issuance of Circular 14, TPBank proactively conducted a comprehensive review of the new requirements related to capital calculation methods, organizational structure, data systems, and information technology infrastructure. The bank has perfected its internal processes, issued guidelines for calculating, managing, monitoring, and disclosing capital adequacy ratios (CAR), and organized internal audits to ensure full and consistent compliance.
Based on the implementation results, TPBank has reported to the State Bank of Vietnam its completion of all SA requirements under Circular 14/2025/TT-NHNN and officially registered to apply this method from the Circular’s effective date (September 15, 2025). Additionally, the bank has registered to implement the IRB roadmap over two years, as guided by the State Bank.
Previously, under the Basel III/Basel III Reforms project, TPBank applied SA and developed an internal rating model to prepare for IRB implementation. The bank has built tools to calculate key Basel III metrics such as CAR, leverage ratio (LR), liquidity coverage ratio (LCR), net stable funding ratio (NSFR), and the market risk capital framework under Basel III Reforms (FRTB). The entire process was independently reviewed by KPMG, an independent audit and consulting firm within the Big4 group, ensuring transparency and objectivity.
As of now, TPBank maintains a capital adequacy ratio (CAR) of nearly 14%, significantly higher than the minimum threshold of 10.5% mandated by Circular 14, including the capital conservation buffer. Additionally, the liquidity coverage ratio (LCR) exceeds 104%, and the net stable funding ratio (NSFR) surpasses 124%, both well above the minimum requirement of 100%. The leverage ratio is also maintained at around 8%, far exceeding the minimum requirement of 3%. These figures not only underscore TPBank’s robust risk management capabilities and strong financial foundation but also demonstrate its potential for long-term growth, safe expansion, and resilience against financial market fluctuations.
Steadfast Commitment to Sustainability – Building Trust and International Standing
TPBank’s distinction as the first Vietnamese bank to fully implement Basel III and IFRS9 in 2021 is not merely a technical milestone but a testament to its strategic focus on capital safety and risk management. TPBank has eschewed short-term growth and profits in favor of a sustainable foundation and adherence to international standards.
Building on this foundation, the completion of Circular 14 compliance under SA and the proactive implementation of the IRB roadmap offer TPBank clear strategic advantages. Firstly, the bank gains deeper risk control through a substantial capital buffer and efficient liquidity management, enhancing its resilience to economic shocks. Secondly, the development of an internal model under IRB allows TPBank to measure and quantify risks more accurately, optimizing capital utilization across the system. Furthermore, transparency in disclosures and full compliance with international standards have bolstered investor, partner, and market confidence, providing TPBank with leverage to expand collaborations and enhance its competitive position.
Mr. Nguyễn Hưng, CEO of TPBank, shared: “We recognize that compliance with Circular 14 is not just a legal requirement but a strategic move demonstrating our governance capabilities. TPBank has chosen the more challenging path, demanding meticulous preparation in capital, data, technology, and human resources, but we believe this path ensures genuine sustainability. Today’s achievement is a crucial stepping stone for us to continue enhancing risk management, strengthening financial resilience, and establishing our regional presence.”
From 2025 to 2027, TPBank will expedite the implementation of the IRB method as guided by the State Bank, aiming for full compliance with Circular 14 by September 15, 2027. Concurrently, TPBank is advancing the Internal Liquidity Adequacy Assessment Process (ILAAP) in line with European Central Bank (ECB) standards and upgrading its liquidity risk and interest rate risk management framework (IRRBB).
With a robust capital base, internationally aligned risk management capabilities, and a long-term development strategy, TPBank not only solidifies its pioneering role in Vietnam’s financial system but also positions itself for regional expansion—backed by a secure financial structure, robust data, and trust built on transparency.
– 11:19 03/10/2025
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