At a press conference announcing the banking sector's first-half 2026 results, leaders of the State Bank of Vietnam (SBV) addressed Government Resolution No. 168/2026 issued on June 27, 2026. The Government asked SBV in 2026 to continue researching increasing the share of term deposits of the State Treasury at commercial banks as part of banks' funding to bolster liquidity.
The government resolution requests SBV to study adjustments to the State Treasury term deposits ratio at banks to ensure the banking system operates safely, maintains liquidity, and supports the economy’s funding needs while contributing to macroeconomic stability.
SBV explained more about Circular No. 08, which allows excluding 80% of the State Treasury's term deposits from the funding used to calculate the loan-to-deposit ratio (LDR) instead of 100% as currently prescribed.
Raising the State Treasury term-deposit share in the LDR would not boost liquidity but could expand credit, according to Mr. Vu Le Tung Giang, Deputy Director of the Basel III/Banking System Safety division. In practice, ensuring banking system liquidity does not rely on a single solution but is achieved through multiple tools, including flexible open market operations, refinancing, and other monetary policy instruments.
SBV is continuing to refine the liquidity risk management framework in line with Basel III and to monitor liquidity developments at each credit institution to enable timely action. In line with Government Resolution 168/NQ-CP, SBV will continue studying adjustments to the State Treasury term deposits ratio at banks to ensure the system operates safely, maintains liquidity, and meets the economy’s funding needs while contributing to macroeconomic stability. Deputy Governor Pham Thanh Ha noted that liquidity support for credit institutions is important and Treasury deposits are one of the measures; however, credit institutions should focus on liquidity buffers and safety indicators.
Liquidity support for credit institutions is important and Treasury deposits are one of the measures; however, banks should focus on liquidity buffers and safety indicators. — Deputy Governor Pham Thanh Ha
