State Treasury deposit cap at banks raised to 50%

The decision was issued as the Government rolls out Resolution No. 168 to realize the target of GDP growth of 10% or more.

The State Bank of Vietnam has just issued Decision No. 1743/QD-NHNN setting out the deduction ratio for the balance of term deposits of the State Treasury when calculating the loan-to-deposit ratio (LDR).

Under this decision, the deduction ratio is set at 50% of the balance of the State Treasury's term deposits when calculating the LDR.

The decision takes effect from 1 August 2026 through 31 July 2028. Throughout this period, the 50% deduction ratio will be applied uniformly.

Along with raising the ratio for counting State Treasury deposits into the LDR to 50%, the State Bank requires commercial banks that receive term deposits from the State Treasury to proactively monitor, assess and control mismatches in both the scale and maturity between mobilized funding sources and the use of funds.

Banks must also ensure their liquidity and solvency, including in the event that the State Treasury withdraws term deposits before maturity, while maintaining full compliance with the prudential ratios required by law.

The deduction ratio is set at 50% of the balance of the State Treasury's term deposits when calculating the LDR. Photo: HA

The decision was issued as the Government rolls out Resolution No. 168/NQ-CP dated 27 June 2026 on updating the growth scenario and key solutions for the remaining quarters of the year, aiming to realize the target of GDP growth of 10% or more while still maintaining macroeconomic stability.

Previously, Circular No. 08/2026/TT-NHNN had allowed banks to include 20% of the balance of the State Treasury's term deposits in the denominator when calculating the LDR, while the agency's demand deposits continued to be fully excluded.

The new adjustment comes as the Big 4 banks - Vietcombank, VietinBank, BIDV and Agribank - have all repeatedly moved close to the 85% LDR ceiling.

Against this backdrop, the new regulation is seen as a short-term "breathing space" for banks, while also reflecting a more flexible approach by the regulator following the earlier tightening period.

However, according to SSI experts, this remains merely a short-term technical solution. The new regulation helps ease immediate pressure but has not fundamentally resolved the maturity mismatch between the structure of funding sources and the use of funds.

In the long run, the Big 4 still need to proactively diversify their funding sources, increase the proportion of stable retail deposits and adjust their lending strategies toward greater sustainability in terms of maturity.

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Source: TheLeader — theleader.vn. This article is republished for the purpose of sharing knowledge with the community of founders and investors in the HCM VIF ecosystem.