Circular 14/2025/NHNN reflects the central bank’s commitment to strengthening capital adequacy and enhancing risk management across the banking system. Mounting liquidity pressure In the year to October 28, credit growth in the banking system had reached 14.77%, markedly higher than the 10.1% recorded over the first ten months, according to a report by VnDirect Securities Corporation. In July, the State Bank of Vietnam (SBV) raised credit growth limits for several banks, following a 9.6% expansion in the first seven months—already outpacing the pace implied by the initial 16% cap. The adjustment was intended to create additional room for lending and support the Government’s GDP growth target of above 8%. Amid accelerating credit growth, real estate has become a key destination for capital flows, with lending to the sector expanding rapidly. As of July, outstanding real estate loans had risen 17% year-to-date—nearly double the overall industry growth—accounting for about 24% of total outstanding credit, according to the SBV. Business-related real estate loans, which make up 56% of the total, surged 23.9%, far outpacing loans for home purchases (44%), which grew 12.4%. This sharp increase reflects heightened demand for financing, driven by expectations of substantial corporate bond maturities in 2025. The value […]