State Bank of Vietnam issues new regulations on special lending

The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 02/2026/TT-NHNN, amending and supplementing certain provisions of Circular No. 35/2025/TT-NHNN on special lending for credit institutions.

Expanded scope and participants in special lending

Circular No. 02/2026/TT-NHNN expands the scope of special lending mechanisms. It not only covers SBV lending to credit institutions, but also includes “the State Bank’s special lending … the Deposit Insurance Organization, other credit institutions to credit institutions; the State Bank’s special lending to the Deposit Insurance Organization.”

The Circular also broadens the applicable subjects to include the Deposit Insurance Organization and individuals and entities related to special lending activities. This formalizes the Deposit Insurance Organization as an actor within the special lending framework alongside the SBV and credit institutions.

A key feature is the explicit recognition of a dual role for the Deposit Insurance Organization. The Circular states that “the lender in special lending is the State Bank, the Deposit Insurance Organization, other credit institutions…”. At the same time, it allows the Deposit Insurance Organization to be a borrower when “the Deposit Insurance Organization borrows from the State Bank.” The mechanism is therefore designed to involve multiple parties to help address liquidity difficulties in the system.

Borrower eligibility, lending cases, and principles revised

Circular No. 02/2026/TT-NHNN amends and supplements provisions on borrower eligibility, cases of special lending, lending principles, and responsibilities of the involved parties. It adds that the SBV may lend to the Deposit Insurance Organization in certain cases under the Deposit Insurance Law.

0% interest special loan without collateral for the Deposit Insurance Organization

The Circular provides that “special lending at 0% interest per year, with no collateral for the Deposit Insurance Organization” applies in legally defined cases.

It also allows the Deposit Insurance Organization to use its resources to support the system by “lending to credit institutions from the professional contingency fund.”

Regarding use of funds, the Circular states that “the Deposit Insurance Organization may only use the special loan to pay insurance.” The loan amount is determined based on actual needs and must not exceed the deficiency of the professional contingency fund.

On pricing, the favorable policy is maintained: “the interest rate on the principal of the special loan… is 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 debt repayment. When the Deposit Insurance Organization needs to borrow, it must submit a complete dossier to the SBV, specifying the amount, purpose, term, and the pledge to use the funds in accordance with regulations.

The Governor of the SBV will review and decide on the loan within no more than 20 working days from receipt of a complete dossier.

On repayment, the Circular stipulates that when the special loan matures, the Deposit Insurance Organization must repay all debt to the SBV. If obligations are not met or funds are misused, the SBV may recover the debt, including by offsetting sums from the Deposit Insurance Organization’s account.

Responsibilities and implementation

The Circular assigns responsibilities to the involved parties. The Deposit Insurance Organization is responsible for providing complete and accurate information, using funds for the intended purposes, and complying with the law. SBV units are tasked with coordinating, supervising, and handling violations during implementation.

Effective date and purpose

Circular No. 02/2026/TT-NHNN takes effect on May 1, 2026. The issuance is intended to implement provisions of the 2025 Deposit Insurance Law and strengthen the legal framework for special lending to enhance the capability to support and safeguard the stability of credit institutions.

Source: Nhật Quang, FILI