Adjustments on regulations related to the ratio of outstanding loans to total deposits in Vietnam

Le Truong Quoc Dat

15:42, 31/01/2023

The Governor of the State Bank of Vietnam issued Circular 26/2022/TT-NHNN dated December 31, 2022 amending Circular 22/2019/TT-NHNN stipulating safety limits and ratios in operations of banks and foreign bank branches.

According to Circular 26/2022/TT-NHNN, the ratio of outstanding loans to total deposits is still calculated according to the provisions of Circular 22/2019/TT-NHNN.

However, there is an adjustment regarding the total deposit.

Specifically, deposits of domestic and foreign organizations (including deposits of other credit institutions and foreign bank branches), except for the following:

- Deposits and specialized capital deposits of customers;

- Demand deposits of the State Treasury of Vietnam;

- Term deposits of the State Treasury of Vietnam according to the following schedule:

+ From January 1, 2020 to December 31, 2023: 50% of the deposit balance of the State Treasury of Vietnam;

+ From January 1, 2024 to December 31, 2024: 60% of the deposit balance of the State Treasury of Vietnam;

+ From January 1, 2025 to December 31, 2025: 80% of the deposit balance of the State Treasury of Vietnam;

+ From January 1, 2026: 100% of the deposit balance of the State Treasury of Vietnam.

More details can be found in Circular 26/2022/TT-NHNN, effective from December 31, 2022.

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