MSB launches project on Circular 14 regarding capital safety.

Vietnam Maritime Commercial Bank (MSB), in collaboration with Ernst & Young Vietnam (EY), successfully held the Launch Ceremony for Circular 14/2025/TT-NHNN Project, marking a significant step in the transition to applying internal rating-based (IRB) methodology.

Circular 14, issued by the State Bank of Vietnam (SBV), is based on the latest recommendations of the Basel Committee in Basel III standards, inheriting fundamental regulations from the previous Circular 41. The application of Basel III is considered an important step towards improving risk management standards and capital safety, contributing to enhanced resilience against financial market risks and strengthening investor and customer confidence.

Regarding customer credit risk, in addition to the Standard Method, commercial banks can choose the Internal Rating Method for estimating risk-weighted assets and capital. The Internal Rating Method allows banks to build their own models to estimate key risk parameters such as PD, LGD, and EAD; however, it also places stringent demands on data management and information technology systems, as well as model risk management to meet the requirements of the Circular.

MSB's leadership team poses for a photo with representatives from the State Bank of Vietnam and EY at the Project Launch Ceremony.

Over the years, MSB has been one of the pioneering banks in Vietnam to proactively research and implement Basel II and III standards, and gradually apply the IRB methodology in internal governance: such as capital management, ICAAP, and business operations. This has helped MSB build a solid foundation before officially adopting IRB.

Circular 14 issued by the State Bank of Vietnam officially established a complete legal framework, creating conditions for MSB to move from the preparation phase to the practical implementation of the IRB methodology. MSB's implementation process is supported by its partner EY in the role of independent auditor and compliance reviewer, under the close guidance and supervision of the regulatory authority.

At the ceremony, representatives from the State Bank of Vietnam acknowledged MSB's efforts in implementing Circular 14, and also provided important directions to ensure the project is implemented correctly, effectively, and in accordance with regulations.

MSB reaffirms its strong commitment to enhancing its risk management capabilities in accordance with international best practices.

Speaking at the event, Mr. Nguyen Tien Duc - Director of Risk Management at MSB - emphasized that the implementation of the IRB is not only a requirement to comply with the regulations of the State Bank of Vietnam, but also an opportunity for MSB to enhance its risk management capabilities in capital planning, scenario assessment, and growth regulation, helping the Bank strengthen its resilience, protect asset quality, and create a stable foundation for future development stages.

“MSB is committed to mobilizing all available resources, implementing the project systematically, and strengthening coordination with units inside and outside the bank to ensure the completion of the requirements of Circular 14 according to the schedule,” Mr. Nguyen Tien Duc affirmed.

Currently, MSB has 260 branches and transaction offices nationwide and connects with nearly 400 correspondent banks in 45 countries and territories. With a system of over 7,000 employees, the bank currently serves more than 8 million individual customers and nearly 100,000 corporate customers.

At the end of the first quarter of 2026, MSB recorded solid growth with pre-tax profit reaching nearly VND 1,890 billion (a 16% increase compared to the same period last year, achieving 24% of the annual plan), and total assets reaching nearly VND 413,000 billion. The bank's operational efficiency continued to be optimized with a CIR ratio of 34.51%. Simultaneously, system safety indicators were tightly controlled with a low non-performing loan ratio (1.73%) and a Loan-to-Deposit Ratio (LDR) of 62.91%, ensuring high liquidity and strict compliance with the regulations of the State Bank of Vietnam.

Source: https://thoibaonganhang.vn/msb-khoi-dong-du-an-thong-tu-14-ve-an-toan-von-182448.html