SBV Circular 08 Boosts State-Owned Banks: VCB, BID, CTG Benefit from Treasury Deposit Rule
This Aveluro analysis covers VCB (Ngoại thương Việt Nam (Vietcombank) chính thức đi vào hoạt động ngày 01/04/1963) 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) has issued Circular 08, effective May 15, 2026, which allows commercial banks to include 20% of State Treasury deposits in total deposits when calculating the loan-to-deposit ratio (LDR). This regulatory change primarily benefits state-owned banks—Vietcombank (VCB), BIDV (BID), and VietinBank (CTG)—which collectively hold over 99% of the VND 626.7 trillion in State Treasury deposits. Analysts estimate the policy could reduce their LDR ratios by 1.1-1.5%, providing additional credit headroom.
Key Facts
- Circular 08 amends Circular 22/2019/TT-NHNN and took effect on May 15, 2026.
- Banks may now include 20% of State Treasury term deposits in total deposits for LDR calculation, reversing a full exclusion effective January 1, 2026.
- As of end-March 2026, State Treasury deposits at the banking system totaled VND 626,716 billion.
- State-owned commercial banks held VND 624,167 billion, or 99.59% of total State Treasury deposits.
- MBS estimates the LDR reduction for VCB, BID, and CTG at 1.1-1.5%.
- SSI Research estimates the system-wide credit impact at 0.6% of outstanding loans, but 1.4-2% for state-owned banks.
- The three listed state-owned banks are Vietcombank (VCB), BIDV (BID), and VietinBank (CTG).
What Happened
The SBV issued Circular 08 on May 15, 2026, modifying the LDR calculation rules for commercial banks. Previously, State Treasury deposits were fully excluded from total deposits starting January 1, 2026. The new circular allows banks to count 20% of such term deposits back into the denominator, easing the LDR constraint. According to MBS, this technical adjustment provides meaningful relief for state-owned banks, which dominate State Treasury deposit holdings. SSI Research noted that while the system-wide effect is modest, the impact on state-owned banks is more pronounced due to their large share of these deposits.
Market Context
On May 17, 2026, VCB closed at VND 60,700 (-0.49%), BID at VND 42,950 (-1.38%), and CTG at VND 35,800 (-0.42%). The banking sector has faced pressure from strong credit growth outpacing deposit mobilization, tightening liquidity. Circular 08 offers a technical fix that improves LDR compliance without requiring additional deposit raising. All three tickers trade on HOSE.
Strategic Significance
Circular 08 provides state-owned banks with a structural advantage in credit expansion. By effectively increasing their reported deposit base, these banks can extend more loans without breaching regulatory LDR limits or incurring higher funding costs. This is particularly relevant as credit demand recovers and the SBV maintains a cautious stance on interest rates. The policy reinforces the competitive position of VCB, BID, and CTG relative to private banks, which hold negligible State Treasury deposits.
What to Watch
- Q2 2026 earnings reports from VCB, BID, and CTG for actual LDR changes and credit growth.
- SBV guidance on potential further adjustments to LDR or other prudential ratios.
- Changes in State Treasury deposit allocation among banks.
- Credit growth data for the banking sector in coming months.
- Any follow-up circulars clarifying the treatment of other government deposits.