State Bank issues Circular 02/2026 amending Circular 35/2025 on special lending for credit institutions

Circular No. 02/2026/TT-NHNN revises and supplements key provisions on the special lending mechanism, with a notable addition: the Deposit Insurance Corporation (and related entities) is formally included as a participant in this lending framework alongside the State Bank of Vietnam (SBV) and credit institutions.

Expanded scope and participants

The Circular expands the scope of regulation beyond SBV special lending to credit institutions. It also covers special lending by the SBV, the Deposit Insurance Corporation, and other credit institutions to credit institutions, as well as lending by the SBV to the Deposit Insurance Corporation.

It also broadens the scope of application to include the Deposit Insurance Corporation and related entities, reflecting the formal inclusion of Deposit Insurance as a participant in the special lending regime.

Deposit Insurance Corporation’s dual role

The Circular clarifies the Deposit Insurance Corporation’s dual role in the lending relationship. It states that “the lender in special lending is the State Bank, the Deposit Insurance Corporation, other credit institutions…”. At the same time, the Deposit Insurance Corporation may also be a borrower when “the Deposit Insurance borrows from the State Bank.”

This design is intended to make the special lending framework more flexible, enabling broader participation to address liquidity issues in the system.

Key revised provisions on lending cases and principles

The Circular revises borrower-related content, cases of special lending, lending principles, and the responsibilities of the parties involved. It adds a provision allowing the SBV to lend to the Deposit Insurance Corporation in certain cases under the Deposit Insurance Law.

0% special lending for statutory cases

In statutory cases, the Circular provides for “special lending at 0% per annum, with no collateral for the Deposit Insurance Corporation.” This is described as a relief mechanism to help the Deposit Insurance Corporation mobilize additional resources to perform its insurance payout function when needed.

Use of contingency fund and purpose limitation

Conversely, the Deposit Insurance Corporation is also allowed to use its own resources to support the system by “lending to credit institutions from the professional contingency fund.”

Regarding the purpose of funds borrowed by the Deposit Insurance Corporation, the Circular states that it “may only use the borrowed funds to pay insurance benefits.” The loan amount is determined based on actual needs and must not exceed the shortfall of the contingency fund.

Interest and overdue interest

The preferential interest policy remains in place: “the interest rate on the principal of the special loan shall be 0% per year; no interest is charged on overdue interest.”

Borrowing, disbursement and repayment process

The Circular sets out a strict process for borrowing, disbursement and repayment. When the Deposit Insurance Corporation needs to borrow, it must submit a complete file to the SBV, specifying the amount, purpose, term and commitment to use the funds in accordance with the rules.

Within up to 20 working days from receipt of a complete file, the Governor of the State Bank will review and decide on the loan.

On repayment, the Circular states that “when the special loan matures, the Deposit Insurance Corporation must repay all debt to the State Bank.” If obligations are not met or funds are used for purposes other than prescribed, the SBV may apply enforcement measures, including offsetting funds from the Deposit Insurance Corporation’s accounts.

Responsibilities and implementation

The Circular assigns responsibilities to the Deposit Insurance Corporation, including providing full and accurate information, using funds for the intended purposes, and complying with the law. SBV agencies are responsible for coordination, supervision, and handling violations during implementation.

Effective date and objective

Circular No. 02/2026/TT-NHNN takes effect on May 1, 2026. The issuance aims to implement the 2025 Deposit Insurance Law and complete the legal framework on special lending, contributing to strengthened capacity to support and ensure the safety of the banking system.