SBV Circular 08/2026 Eases LDR Calculation for State-Owned Banks BID, VCB, CTG
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
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Overview
The State Bank of Vietnam (SBV) issued Circular 08/2026/TT-NHNN, effective May 15, 2026, amending the loan-to-deposit ratio (LDR) calculation for credit institutions. The circular allows banks to count 20% of term deposits from the State Treasury (Kho bạc Nhà nước, KBNN) in the LDR denominator, providing meaningful liquidity relief for state-owned banks such as BIDV (BID), Vietcombank (VCB), and VietinBank (CTG).
Key Facts
- Circular 08/2026/TT-NHNN takes effect on May 15, 2026.
- The regulation permits banks to include 20% of KBNN term deposits in the LDR denominator.
- As of Q1 2026, KBNN deposits at Vietcombank, BIDV, and VietinBank totaled VND 563,036 billion, up nearly 39% from end-2025.
- Vietcombank held VND 189,159 billion in KBNN deposits, of which VND 185,250 billion were term deposits, adding VND 37,050 billion to its LDR denominator.
- BIDV recorded VND 188,627 billion in KBNN deposits, with term deposits of VND 185,250 billion, also contributing VND 37,050 billion to LDR.
- VietinBank’s KBNN deposits reached approximately VND 185,250 billion, up 38% from early 2025.
- The circular amends point a, clause 4, Article 20 of Circular 22/2019/TT-NHNN.
What Happened
On May 15, 2026, the SBV officially issued Circular 08/2026/TT-NHNN, modifying the LDR calculation formula for banks. Previously, KBNN term deposits were largely excluded from the LDR denominator, limiting the recognized deposit base for state-owned banks that hold large treasury balances. The new rule allows banks to count 20% of these term deposits, effectively increasing their reported deposit base and easing LDR constraints.
According to VPBank Securities (VPBankS), the circular is a timely measure to alleviate interbank liquidity pressure amid sluggish deposit growth (under 1% system-wide). The adjustment is seen as a practical recognition of budget resources in banks’ lending capacity.
Market Context
On the first trading day after the announcement (May 16, 2026), BID closed at VND 42,950 (-1.38%), CTG at VND 35,800 (-0.42%), and VCB at VND 60,700 (-0.49%) on HOSE. The slight declines may reflect broader market sentiment rather than the circular’s impact, which is fundamentally positive for liquidity. The banking sector has faced tight liquidity conditions due to slow deposit growth and strong credit demand.
Strategic Significance
For BID, VCB, and CTG, the circular directly improves their LDR compliance headroom, potentially allowing them to expand credit without breaching regulatory limits. The VND 563 trillion in KBNN deposits at these three banks represents a substantial buffer: the 20% inclusion adds roughly VND 111 billion to their collective LDR denominator (based on term deposit estimates). This is particularly important as these banks are key channels for government infrastructure and policy lending. The move signals the SBV’s willingness to use regulatory tools to support state-owned banks’ role in economic growth.
What to Watch
- Q2 2026 earnings reports from BID, VCB, and CTG to see actual LDR improvements and credit growth.
- Any further SBV circulars adjusting other prudential ratios (e.g., LCR, NSFR).
- Deposit growth trends at state-owned banks; if KBNN deposits continue rising, the benefit amplifies.
- VPBankS and other brokerages’ updated target prices and ratings for the three banks.
- Potential spillover to other banks if the SBV extends similar treatment to other public-sector deposits.