The central bank of Vietnam is requiring banks to maintain a capital adequacy ratio of at least 8% from Jan. 1, 2020, in preparation for the implementation of Basel II standards, Viet Nam News reported Jan. 17.

The new requirement replaces the current regulatory minimum of at least 9%, according to a circular from the State Bank of Vietnam.

The central bank has only required the 10 largest banks to implement Basel II standards in a pilot phase. The test run will be completed by 2018 and the Basel II rules will then apply to other commercial banks in the country.