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The Law on Minimum Capital Adequacy Ratio when Restructuring Commercial Banks in Vietnam in the Period of International Integration

WSEAS Transactions on Business and Economics | 2026

Paper Details

Authors: Hang N.M.; Huong N.T.

DOI: 10.37394/23207.2026.23.5

Journal: WSEAS Transactions on Business and Economics

Year: 2026

Publisher: World Scientific and Engineering Academy and Society

Document Type: Article

Open Access: All Open Access; Gold Open Access

Cited by: 0

Abstract

Vietnam’s commercial banks are facing increasing risks, threatening the stability of the national financial system. Therefore, restructuring is essential, accompanied by strong legal regulations on the minimum capital adequacy ratio (CAR) to ensure system safety and international integration requirements. This article analyzes legal issues related to CAR during bank restructuring, identifies regulatory gaps, and proposes improvements. Using qualitative and comparative methods, the research highlights that compliance with Basel II capital standards is critical in restructuring. Capital serves as both a prerequisite and a binding condition in the post-restructuring phase. The minimum CAR must be applied more strictly, requiring commitment from banks and regulatory bodies. Restructuring activities—such as establishment, operation, acquisition, and merger—must comply with capital and CAR standards. These are vital legal conditions to ensure that mergers and consolidations are conducted safely and sustainably, contributing to the long-term stability and competitiveness of Vietnam’s commercial banking system during international integration. © 2026, World Scientific and Engineering Academy and Society. All rights reserved.

Keywords

CAR; commercial bank; international integration; laws on minimum capital adequacy ratio; minimum capital adequacy ratio; minimum CAR; restructuring