SBV Proposal to Ease LDR Calculation Could Free Up VND 78 Trillion for State Banks
This Aveluro analysis covers BID (Đầu tư và Phát triển Việt Nam (BIDV), có tiền thân là Ngân hàng Kiến thiết Việt Nam trực thuộc Bộ Tài chính được thành lậ) in the Banking sector. The classified event type is regulation change, with positive sentiment and a deterministic market-impact score of 7.0/10. Aveluro classifies this story as a positive catalyst in the stock's news coverage. Source coverage came from CafeF - Tài chính ngân hàng, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Follow this event and trade Vietnam stocks
Use the broker guide to compare Vietnam market access before acting on this news.
Aveluro may earn a commission from broker partners. Market data and broker availability can change; confirm access before opening an account.
Overview
The State Bank of Vietnam (SBV) is proposing an amendment to Circular 22/2019 that would alter the loan-to-deposit ratio (LDR) calculation for commercial banks. Under the draft, 20% of State Treasury term deposits would be included in the denominator, freeing up an estimated VND 58,000-78,000 billion (approximately USD 2.3-3.1 billion) in additional lending capacity for state-owned banks such as BIDV (BID), Vietcombank (VCB), and VietinBank (CTG). This regulatory change aims to reduce deposit competition and support credit growth.
Key Facts
- The SBV is soliciting comments on a draft amendment to Circular 22/2019, which governs prudential ratios for banks.
- Currently, 100% of State Treasury term deposits are excluded from the LDR denominator; the proposal would exclude only 80%, effectively including 20%.
- MBS Securities estimates the change could reduce LDR ratios for state-owned banks by 1.1% to 1.5%.
- The additional lending capacity is estimated at VND 58,000-78,000 billion, equivalent to 0.3%-0.4% of total system credit (VND 19.5 quadrillion as of April 2026).
- The SBV also issued Circular 08/2026, effective May 15, 2026, providing technical support for LDR calculation.
- As of end-April 2026, system credit growth stood at 4.4%, while deposit growth lagged due to funds flowing into alternative investments.
- Interest rates have edged up since late 2025 and remained elevated in early 2026, though a slight decline of 0.1-0.5 percentage points was seen in April.
What Happened
The SBV published a draft amendment to Circular 22/2019 on its website, proposing to change the treatment of State Treasury deposits in the LDR calculation. Currently, all term deposits from the State Treasury are excluded from total deposits (the denominator). The draft would exclude only 80%, meaning 20% would count toward the denominator, thereby lowering the LDR ratio for banks with large State Treasury deposits.
Analyst Nguyen Danh Thai of CKG Vietnam noted that the change would particularly benefit state-owned commercial banks due to their significant State Treasury deposit base. MBS Securities estimated that the adjustment could reduce LDR ratios by 1.1-1.5 percentage points for Vietcombank, BIDV, and VietinBank, freeing up VND 58,000-78,000 billion in lending capacity. The move comes as credit growth outpaces deposit growth, putting pressure on bank liquidity and pushing up deposit rates.
Market Context
On May 17, 2026, BID closed at VND 42,950 (-1.38%), CTG at VND 35,800 (-0.42%), and VCB at VND 60,700 (-0.49%), all on HOSE. The banking sector has faced headwinds from rising deposit rates and tight liquidity, with credit growth recovering strongly. The proposed LDR change is seen as a positive catalyst for state-owned banks, potentially easing funding costs and supporting loan growth. The broader market has been monitoring regulatory moves to sustain credit expansion without stoking inflation or currency pressure.
Strategic Significance
For long-term investors, the amendment signals the SBV’s willingness to use regulatory tools to support credit growth while maintaining prudential standards. By including State Treasury deposits, the central bank effectively increases the lending capacity of state-owned banks without requiring additional deposit mobilization. This could reduce upward pressure on deposit rates, benefiting banks’ net interest margins and lowering borrowing costs for the economy. The change also underscores the government’s focus on channeling credit to productive sectors, particularly as the economy recovers.
What to Watch
- Final approval and effective date of the amended Circular 22/2019.
- Q2 2026 earnings reports from BID, VCB, and CTG for evidence of improved LDR ratios and lending growth.
- SBV policy meetings and any further adjustments to prudential ratios.
- Deposit rate trends, especially for state-owned banks, in the coming months.
- Credit growth data for May and June 2026 to gauge the impact on system liquidity.