State Bank of Vietnam raises LDR deduction ratio to 50%

The State Bank of Vietnam (NHNN) issued Decision 1743/QD‑NHNN, effective 1 August 2026 through 31 July 2028, to increase the proportion of Treasury term‑deposit balances that can be deducted when calculating the loan‑to‑deposit ratio (LDR) from the current 20% to 50%. The change is part of Circular 25/2026, which amends earlier regulations on banking safety ratios and short‑term funding limits.

Commercial banks that hold Treasury deposits must now monitor the size and maturity of these funds, ensure sufficient liquidity and payment capacity, and maintain required safety ratios even if the Treasury withdraws deposits early. The adjustment is intended to give banks more room to expand credit while supporting the government’s growth target of at least 10% for 2026 and preserving macro‑economic stability.