State Treasury Deposits at VCB, BID, CTG Surge 39% to 563 Trillion VND; SBV Eases LDR Rule

Overview

State Treasury deposits at three major state-owned banks—Vietcombank (VCB), BIDV (BID), and VietinBank (CTG)—rose nearly 39% to over 563 trillion VND by the end of Q1 2026. Concurrently, the State Bank of Vietnam (SBV) issued a circular adjusting the loan-to-deposit ratio (LDR) calculation to include 20% of State Treasury deposits, providing liquidity relief for these banks, while excluding interbank deposits from the denominator.

Key Facts

• Total State Treasury deposits at VCB, BID, and CTG reached 563,035 billion VND as of end-Q1 2026, up nearly 39% from end-2025.
• Vietcombank held the largest share at 189,159 billion VND, up 39% from the start of the year.
• BIDV held 188,626 billion VND (up 39%), and VietinBank held 185,250 billion VND (up 38%).
• The new SBV circular (amending Circular 22/2019) allows 20% of State Treasury deposits to be counted as mobilized capital in the LDR calculation.
• The circular removes interbank deposits from the LDR denominator, tightening liquidity for banks reliant on interbank funding.
• The LDR ceiling remains at 85%, but the definition is updated to a new concept called CDR (capital-to-deposit ratio).
• SSI Securities analysts noted the system-wide LDR was nearly 112% as of end-March 2026, indicating persistent capital pressure.

What Happened

According to data from the State Treasury, deposits at Vietcombank, BIDV, and VietinBank surged to 563,035 billion VND by the end of Q1 2026, a nearly 39% increase from the end of 2025. Vietcombank remained the largest holder with 189,159 billion VND, followed by BIDV (188,626 billion VND) and VietinBank (185,250 billion VND). The deposits are predominantly term deposits in VND, with a small portion in demand deposits and foreign currency.

The SBV recently issued a circular amending the LDR calculation methodology. The new regulation allows banks to include 20% of State Treasury deposits in the denominator of the LDR (now termed CDR), easing liquidity pressure for state-owned banks that hold large amounts of these deposits. However, the circular also excludes interbank deposits from the denominator, which could increase funding pressure on private banks that rely heavily on interbank borrowing.

Market Context

On April 15, 2026, VCB closed at 60 VND (+1.01%), BID at 40 VND (-0.12%), and CTG at 35 VND (unchanged). All three stocks trade on HOSE. The banking sector has faced persistent liquidity challenges, with SSI analysts reporting a system-wide LDR of nearly 112% as of end-March 2026. The new circular is seen as a targeted relief for state-owned banks, which have been under pressure from a phased reduction in the inclusion of State Treasury deposits in LDR calculations (from 50% to 100% exclusion by 2026). The reversal to include 20% is a relative easing, but the removal of interbank deposits may offset some benefits.

Strategic Significance

The circular represents a regulatory shift that benefits state-owned banks by improving their reported liquidity ratios without requiring aggressive deposit mobilization. For VCB, BID, and CTG, the inclusion of 20% of State Treasury deposits directly reduces their LDR, potentially allowing more lending capacity or easing compliance with the 85% ceiling. However, the exclusion of interbank deposits from the denominator could pressure private banks that rely on interbank funding, widening the competitive gap. Long-term, the policy signals the SBV’s willingness to tailor regulations to support state-owned banks amid tight system liquidity, but it also highlights the structural reliance on State Treasury deposits as a stable funding source.

What to Watch

• Q2 2026 earnings reports from VCB, BID, and CTG, expected in July 2026, to see actual LDR improvements and lending growth.
• SBV’s next monetary policy meeting for any further adjustments to the LDR circular or other liquidity measures.
• Deposit growth trends at state-owned banks versus private banks, particularly in retail deposits.
• The pace of public investment disbursement, which affects the seasonal volatility of State Treasury deposits.
• Any regulatory response to potential liquidity stress at private banks due to the exclusion of interbank deposits.