Ratio of short-term funds used for medium- and long-term lending

On June 22, 2026, the State Bank of Vietnam issued Circular No. 25/2026/TT-NHNN amending and supplementing a number of articles of Circular No. 22/2019/TT-NHNN. This Circular takes effect on July 1, 2026.

The Circular applies to banks and foreign bank branches operating in Vietnam and prescribes limits and prudential ratios in their operations.

Under the new Circular, banks and foreign bank branches must comply with a maximum ratio of 40% of short-term funds used for medium- and long-term lending. This requirement aims to ensure financial safety and risk management in the lending activities of credit institutions.

Regulations on the deposits of organizations

The Circular also amends regulations on deposits of domestic and foreign organizations. Specifically, deposits of other credit institutions and foreign bank branches shall be included in the prudential ratio calculation, except for margin deposits, customers’ specialized capital deposits, non-term deposits of the State Treasury, and 80% of the balance of term deposits of the State Treasury or another ratio as decided by the Governor of the State Bank of Vietnam from time to time.

Circular No. 25/2026/TT-NHNN also repeals Circular No. 08/2020/TT-NHNN and Circular No. 08/2026/TT-NHNN to unify and update regulations on limits and prudential ratios in the operations of banks and foreign bank branches.

Circular No. 25/2026/TT-NHNN takes effect from July 1, 2026.