SBV Proposes Raising Short-Term Loan Cap to 40%, Benefiting ACB and Smaller Banks

Overview

The State Bank of Vietnam (SBV) has proposed raising the maximum ratio of short-term funds that can be used for medium- and long-term loans from 30% to 40%. The draft amendment to Circular 22/2019 aims to ease liquidity constraints for banks, particularly smaller institutions with rapid credit growth. ACB (Asia Commercial Bank) is among the banks that could benefit, given its active lending and reliance on short-term deposits.

Key Facts

• SBV proposes raising the cap on short-term funds for medium/long-term loans from 30% to 40%.
• The draft amendment targets Circular 22/2019 on safety limits and ratios for banks.
• Many banks have seen their short-term funding ratios approach the current 30% ceiling.
• Smaller banks with fast credit growth are expected to benefit most from the change.
• Large banks that have maintained low ratios will see minimal impact.
• SBV is also considering excluding priority project loans (e.g., infrastructure) from the ratio calculation.
• ACB closed at VND 22,400 on June 18, 2026, up 1.82% with volume of 12.6 million shares.

What Happened

According to a draft amendment to Circular 22/2019, the State Bank of Vietnam is seeking to increase the maximum proportion of short-term funds that banks can use for medium- and long-term lending from 30% to 40%. The proposal is currently open for public comment. Mr. Ho Huu Tuan Hieu, Head of Investment Strategy at SSI Securities, noted that credit growth this year has been high, especially for long-term infrastructure loans, while bank deposits remain predominantly short-term. This maturity mismatch has increased liquidity demand, forcing banks to raise more expensive medium- and long-term deposits.

The SBV is also considering a separate mechanism for priority project loans, particularly infrastructure. If such loans are excluded from the ratio calculation, liquidity pressure on many banks would ease significantly, creating more room for credit expansion.

Market Context

ACB, listed on HOSE, closed at VND 22,400 on June 18, 2026, up 1.82% with a trading volume of 12.6 million shares. The broader VN-Index rose over 24 points on the same day, with positive sentiment supported by the regulatory news. ACBS (ACB Securities) noted that while liquidity declined from the previous session, it remained above the weekly average. The index is expected to test resistance around 1,850 points. The banking sector has been a key driver of the market, and the proposed rule change could further support bank stocks, especially mid-sized lenders like ACB.

Strategic Significance

The proposed rule change directly addresses a structural liquidity challenge for Vietnamese banks: the mismatch between short-term deposits and long-term lending. By raising the cap, the SBV provides banks with more flexibility to fund long-term projects without immediately increasing their cost of capital. For ACB, which has been growing its loan book actively, the change could reduce pressure to raise expensive long-term deposits, potentially improving net interest margins. The exclusion of priority infrastructure loans from the ratio calculation would further benefit banks involved in such projects. This regulatory shift signals the SBV’s support for credit growth while managing systemic risk, which is positive for the banking sector’s profitability and stability.

What to Watch

• Final approval and effective date of the amended Circular 22/2019.
• SBV’s decision on excluding priority project loans from the ratio calculation.
• ACB’s Q2 2026 earnings report, particularly net interest margin and loan growth.
• Changes in ACB’s short-term funding ratio in upcoming disclosures.
• Market reaction of other mid-sized banks (e.g., HDBank, VPBank) to the proposal.