SBV Proposes Raising Short-Term Capital Ratio to 40%: Impact on ACB, VIB, CTG, OCB

Overview

The State Bank of Vietnam (SBV) has released a draft amendment to Circular 22/2019/TT-NHNN, proposing to raise the maximum ratio of short-term capital used for medium and long-term lending (SMLR) from the current 30% to 40%. This regulatory change would expand credit capacity for the banking system, directly benefiting banks such as ACB, VIB, CTG, and OCB, and indirectly supporting real estate and infrastructure sectors. However, it also raises liquidity risk concerns as banks increase maturity mismatch.

Key Facts

• SBV proposes raising the SMLR from 30% to 40% in a transitional period before 2028.
• In 2025, system-wide medium and long-term credit growth reached about 27%, outpacing overall credit growth.
• In Q1 2026, medium and long-term lending grew 5.9% from the start of the year, nearly 3.7 times the 1.6% growth of short-term lending.
• ACB’s SMLR rose to 24.4% in 2025; VIB to 27%; VietinBank (CTG) to 25.7%; OCB nearly hit the current cap at 29%.
• The draft also outlines a roadmap to adopt Basel III liquidity standards (LCR and NSFR) from January 1, 2028, with early adoption allowed.
• The SMLR was previously reduced from 40% in 2019 to 30% by October 2023.

What Happened

The SBV published a draft amendment to Circular 22/2019/TT-NHNN, proposing to increase the SMLR from 30% to 40% during a transitional period before 2028. The move comes as system-wide medium and long-term credit growth has accelerated, putting pressure on banks’ SMLR. According to the SBV, in 2025, medium and long-term credit grew 27%, and in Q1 2026, it increased 5.9% from the start of the year, far outpacing short-term lending growth. Several banks, including ACB, VIB, CTG, and OCB, reported rising SMLR in 2025, with OCB near the current 30% cap. The draft also sets a path toward Basel III liquidity standards, requiring LCR and NSFR compliance by 2028, with early adoption permitted for qualifying banks.

Market Context

On June 22, 2026, ACB closed at VND 22,000 (-0.90%), CTG at VND 33,850 (+0.30%), OCB at VND 12,250 (-1.61%), and VIB at VND 16,050 (unchanged). All four banks are listed on HOSE. The banking sector has been under pressure from tightening liquidity regulations, and the proposed SMLR increase is seen as a positive catalyst for credit growth. However, the market has reacted cautiously, with mixed price movements reflecting uncertainty about implementation and liquidity risks.

Strategic Significance

The SMLR increase would provide banks with greater flexibility to fund long-term projects, particularly in real estate and infrastructure, which are key drivers of Vietnam’s economic growth. For banks like ACB and VIB, which have seen rising SMLR, the new cap alleviates immediate regulatory constraints. However, the transition to Basel III standards by 2028 introduces a longer-term discipline on liquidity management. Banks that proactively adopt LCR and NSFR may gain a competitive advantage, while those relying heavily on short-term funding face higher compliance costs. The policy shift signals the SBV’s balancing act between supporting credit expansion and maintaining financial stability.

What to Watch

• Final approval and effective date of the draft amendment by the SBV.
• Q2 2026 earnings reports for ACB, VIB, CTG, and OCB, particularly SMLR and credit growth figures.
• Adoption timeline for Basel III standards: which banks register for early LCR/NSFR implementation.
• SBV’s next policy meeting for any additional macroprudential measures.
• Impact on real estate and infrastructure sectors as credit flows increase.