TPBank is a pioneer in achieving Basel III standards.

(Dan Tri Newspaper) - TPBank is gradually moving towards its goal of becoming a bank that has fully complied with Circular 14 using both SA and IRB methods by 2027.

Tien Phong Commercial Joint Stock Bank ( TPBank ) announced that it has fully complied with Circular 14 of the State Bank of Vietnam (SBV) on capital adequacy ratios, using the Standard Method (SA). Simultaneously, TPBank has registered to implement the Internal Rating Board (IRB) method as stipulated in this circular.

This is the next step in TPBank's long-term journey, pursued since 2016, towards approaching the highest international best practices in risk management and capital safety, with the goal of becoming the first bank in Vietnam to fully complete Circular 14 using both SA (Suitable for All) and IRB (Integrated Review Board) methods by September 2025 and 2027.

TPBank has fully complied with Circular 14 of the State Bank of Vietnam (SBV) on capital adequacy ratios, using the standard method (SA) (Photo: TPBank).

TPBank is ready for Circular 14.

Immediately after Circular 14 was issued, TPBank proactively conducted a comprehensive review of the new requirements related to capital calculation methods, organizational structure, data systems, and information technology platforms.

The bank has finalized its entire internal process system, issued guidelines for calculating, managing, monitoring, and disclosing information related to the capital adequacy ratio (CAR), and conducted internal audits to ensure full and consistent compliance.

Based on the results of the practical implementation, TPBank has reported to the State Bank of Vietnam (SBV) that it has completed all requirements according to the SA method stipulated 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 IRB method, with an implementation period of two years as guided by the SBV.

Previously, within the framework of the Basel III/Basel III Reforms Project, TPBank had applied SA and simultaneously developed an internal rating model to prepare for the implementation of IRB.

The bank has developed tools to calculate key indicators according to Basel III standards such as CAR, leverage ratio (LR), short-term liquidity ratio (LCR), net stable capital ratio (NSFR), and a market risk capitalization system according to Basel III Reforms (FRTB). The entire process was independently reviewed by KPMG Tax & Consulting Company Limited.

Currently, TPBank maintains a capital adequacy ratio (CAR) of nearly 14%, significantly higher than the minimum threshold of 10.5% stipulated in Circular 14, including capital preservation buffers.

In addition, the short-term liquidity 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 currently maintained at around 8%, significantly higher than the minimum requirement of 3%, affirming TPBank's risk management capabilities and solid financial foundation, enhancing its resilience against fluctuations in the financial environment.

TPBank is gradually moving towards its goal of becoming a bank that has fully complied with Circular 14 (Photo: TPBank).

Firmly committed to sustainable development, building trust and international standing.

TPBank's achievement of being the first bank in Vietnam to announce the completion of Basel III and IFRS9 implementation as early as 2021 is not just a technical milestone, but also a testament to a development strategy that places capital safety and risk management at its core.

Building upon that foundation, the successful implementation of Circular 14 under the SA framework, coupled with proactive deployment of the roadmap under the IRB framework, has given TPBank clear strategic advantages.

First and foremost is the ability to control risk at a deeper level, thanks to a sufficiently large capital buffer and an effective liquidity management system – which helps banks strengthen their resilience against unexpected economic fluctuations.

At the same time, building an internal model based on IRB allows TPBank to measure and quantify risks more accurately, thereby optimizing capital utilization efficiency across the entire system.

Furthermore, transparency in information disclosure and full compliance with international standards have contributed to strengthening the confidence of investors, partners, and the financial market.

Mr. Nguyen Hung, General Director of TPBank, shared: “We clearly understand that complying with Circular 14 is not only about meeting legal requirements, but also a strategic step demonstrating the character and management capabilities of a bank.”

TPBank has chosen a more challenging path, requiring thorough preparation in terms of capital, data, technology, and human resources, but we believe that this is the path that will bring true sustainability. Today's achievements are an important stepping stone for us to continue our journey of improving risk management capabilities, strengthening our financial power, and gradually asserting our position in the region.”

During the period 2025–2027, TPBank will urgently implement the plan to apply the IRB method according to the guidance of the State Bank of Vietnam, aiming to fully comply with Circular 14 by September 15, 2027.

In addition, TPBank is also actively continuing to implement the Internal Liquidity Assessment Process (ILAAP) according to the standards of the European Central Bank (ECB) and the Liquidity and Interest Rate Risk Management Upgrade Scheme (IRRBB).

Source: https://dantri.com.vn/kinh-doanh/tpbank-tien-phong-dat-chuan-basel-iii-20251006112217372.htm