Circular 08/2026: Policy Boost for State-Owned Banks BID, CTG, VCB
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 4.9/10. Aveluro classifies this story as a positive catalyst in the stock's news coverage. Source coverage came from VnEconomy - Chứng khoán, classified as a primary/top-tier source.
Key Facts
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Overview
The State Bank of Vietnam (SBV) issued Circular 08/2026 on May 15, 2026, amending Circular 22/2019 and partially reversing the tightening path set by Circular 26/2022. The key change allows 20% of term deposits from the State Treasury to be included in the loan-to-deposit ratio (LDR) denominator, easing credit constraints for state-owned banks BID, CTG, and VCB, which were all near the 85% LDR ceiling in Q1 2026.
Key Facts
- Circular 08/2026 was issued on May 15, 2026, amending Circular 22/2019.
- The regulation allows 20% of State Treasury term deposits to count in the LDR denominator, reversing the 100% exclusion that took effect in early 2026.
- As of March 31, 2026, LDRs for CTG, BID, and VCB stood at 83.48%, 82.94%, and 84.54%, respectively, all near the 85% regulatory ceiling.
- Total State Treasury deposits at the three banks reached VND 563,036 billion in Q1 2026.
- The 20% inclusion adds approximately VND 37,000 billion to the LDR denominator for each of VCB and BID, translating to theoretical credit headroom of about VND 31,500 billion per bank at the 85% LDR cap.
- System-wide credit outstanding reached approximately VND 19.5 million billion as of April 28, 2026, up 4.4% YTD and 18.26% YoY.
- The gap between total credit and deposits widened to about VND 1.4 million billion (7.22% of outstanding loans) in April 2026, from VND 1.33 million billion (6.97%) in March 2025.
What Happened
On May 15, 2026, the State Bank of Vietnam promulgated Circular 08/2026/TT-NHNN, amending Circular 22/2019. The circular partially reverses the tightening trajectory introduced by Circular 26/2022, which had progressively excluded State Treasury deposits from the LDR denominator. Under the new rules, 20% of term deposits from the State Treasury are reinstated in the LDR calculation, providing relief to state-owned banks that had been constrained by the previous regulation.
According to analysis by An Binh Securities (ABS), prior to Circular 08, all three major state-owned banks were operating very close to the 85% LDR ceiling in Q1 2026. CTG reported an LDR of 83.48%, BID 82.94%, and VCB 84.54%. At those levels, the banks had virtually no room to expand credit despite strong loan demand from the economy. ABS estimates that the 20% inclusion of State Treasury deposits adds roughly VND 37,000 billion to the LDR denominator for each of VCB and BID, creating theoretical credit headroom of about VND 31,500 billion per bank if they utilize the full 85% LDR cap.
Market Context
On May 18, 2026, the first trading day after the circular’s issuance, BID shares closed at VND 45,300 (+5.47%) on HOSE with volume of 17.4 million shares. CTG closed at VND 36,300 (+1.40%) and VCB at VND 63,200 (+4.12%), both on HOSE. The positive price reaction reflects investor optimism that the policy will alleviate the LDR bottleneck for these banks, which together account for a significant share of system-wide credit. The banking sector has been under pressure from rising LDRs amid strong credit recovery and slower deposit growth, as noted by MBS Securities.
Strategic Significance
Circular 08/2026 is a targeted regulatory adjustment that primarily benefits state-owned banks, which hold large State Treasury deposits. By easing the LDR constraint, the SBV ensures that BID, CTG, and VCB can continue to lend actively in the second half of 2026 without being prematurely constrained by technical limits. This is particularly important given that these banks are key channels for government-directed credit and infrastructure financing. The policy does not affect private commercial banks, which have limited State Treasury deposits. The move signals the SBV’s willingness to use regulatory flexibility to support credit growth while maintaining overall system stability.
What to Watch
- Q2 2026 earnings reports from BID, CTG, and VCB to assess actual credit growth and LDR trends.
- Any further amendments to Circular 22/2019 or related regulations on LDR calculation.
- SBV’s monetary policy stance and any adjustments to credit growth targets for 2026.
- Deposit growth trends at state-owned banks, as the LDR relief is partial and depends on the size of State Treasury deposits.
- Foreign ownership limits and any changes in foreign investor interest in these banks following the policy.