emirates7 - Commercial banks and foreign bank branches in Vietnam will be required to maintain a minimum capital adequacy ratio (CAR) of eight percent from 15th September, including at least 4.5 percent in Tier 1 core capital and six percent in Tier 1 capital.

The requirement is set out in a circular issued by the State Bank of Vietnam, which also obliges banks with subsidiaries to comply with consolidated CAR standards in addition to individual ones.

The circular further stipulates that cash dividend payments are permitted only when banks have fully met the new capital requirements, Vietnam News Agency (VNA) reported.