Hanoi (VNS/VNA) - Prime Minister Pham Minh Chinh has directed the State Bank of Vietnam (SBV) to consider commercial banks’ proposals on implementing Basel III international banking standards.

The direction is under the newly-issued Prime Minister's Directive 09/CT-TTg on the tasks and solutions of State-owned enterprises (SOEs) to contribute to the Government’s double-digit economic growth target.

Under the directive, the PM has also asked the SBV to study and implement banks’ recommendations on sandboxing applications with the spirit of creating space for creativity and evaluating effectiveness.

The SBV must also direct commercial banks to continue to reduce costs, increase the application of technology, simplify administrative procedures and review and restructure the organisational apparatus.

Commercial banks must be willing to share part of their profits by reducing lending interest rates in the spirit of ‘harmonised benefits and shared risks’, the PM noted.

He has required banks to promote credit more promptly and more effectively, especially for projects and sectors that are economic growth drivers, including digital transformation and green growth, while ensuring the safety of banking operations.

In addition, it is necessary to continue researching and implementing preferential credit packages to develop social housing and create favourable conditions for young people under 35 years old to buy social housing.

As for the application of Basel III standards, the Ministry of Finance has previously made public a draft resolution on the establishment of international financial centres in Vietnam, asking for comments. Under the draft, the ministry expects Basel III will be applied in the centres from January 1, 2026.

However, the SBV responded that there is no practical basis for applying Basel III international standards in the centres from the proposed date.

The SBV believes that the roadmap for applying Basel III at the financial centres needs to be consistent with the roadmap applied to commercial banks and branches of foreign banks in the country.

The central bank suggests that in case of a need for immediate application, the ministry should clearly stipulate that the roadmap for applying the Basel III banking standards for foreign investors will be implemented in the financial centres from January 1, 2026 and this is considered a condition for granting an establishment licence in the centres.

Late last year the SBV also proposed adjusting the minimum capital adequacy ratio of banks from the current 8% to 10.5% to update regulations according to Basel III standards and to suit the specific operations of Vietnamese banks.

In Vietnam, the banking system is moving towards applying Basel III standards to improve capital quality and liquidity, which helps create a foundation for a stable banking system th🅷at can recover from crises while minimising systemic risks./.