pc
nid 92333
May 01, 2026
pthandapani@vixio.com
Vietnam
The State Bank Of Vietnam
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1523 charsVietnam's State Bank Seeks Public Comment on Banking Safety Limits and Ratios Circular
On April 29, 2026, the State Bank of Vietnam (SBV) launched a public consultation on a draft circular establishing limits and safety ratios for banking operations conducted by banks and foreign bank branches operating in Vietnam.
The draft circular aims to establish prudential standards and safety parameters governing the activities of credit institutions and foreign bank branches. The circular will define specific limits and ratios designed to ensure the stability and soundness of Vietnam's banking system. These safety measures are intended to protect depositors, maintain systemic stability, and establish consistent regulatory standards across all banking institutions operating within Vietnam's jurisdiction.
The consultation applies to all credit institutions, including commercial banks, policy banks, cooperative banks, non-bank financial institutions, and foreign bank branches operating in Vietnam. The circular represents part of the SBV's ongoing regulatory framework to strengthen banking sector oversight and risk management.
Stakeholders, including individuals and organizations, are invited to submit comments on the draft circular to the SBV's Credit Institution Safety System Department (Cục An toàn hệ thống các tổ chức tín dụng) at 25 Lý Thường Kiệt Street, Cửa Nam, Hanoi, or via email to csatnh@sbv.gov.vn. The comment period closes on June 1, 2025. Interested parties may contact the SBV at 024.39392231 for further information. A comparison table and draft circular are available for review.
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1868 charsState Bank of Vietnam Seeks Public Comment on Banking Safety Limits and Ratios Circular
The State Bank of Vietnam (SBV) has launched a public consultation on a draft circular establishing limits and safety ratios for banking operations conducted by banks and foreign bank branches operating in Vietnam.
The draft circular prescribes:
Liquidity and funding ratios mandating the adoption of a liquidity coverage ratio (LCR) and a net stable funding ratio (NSFR) , establishing a roadmap for minimum LCR and NSFR compliance from 70 percent and 90 percent respectively in 2028 to 100 percent by 2031, while maintaining the loan-to-deposit ratio (CDR) at a maximum of 85 percent.
Credit limits and leverage stipulating a minimum leverage ratio (LEV) of 3 percent, capping the total outstanding credit extended for investing and trading in corporate bonds or stocks at 5 percent of the charter or allocated capital, and setting limits on capital contribution and share purchasing.
High-quality liquid assets (HQLA) and cash flow management defining HQLA into level 1, level 2A, and level 2B categories, detailing the calculation of expected cash outflows (incorporating run-off rates for retail and wholesale deposits, including operational deposits) and expected cash inflows (utilizing inflow rates).
Internal regulations and risk management requiring banks to establish internal regulations on credit granting, asset quality assessment, and liquidity risk management, encompassing stress testing, intraday liquidity management, and collateral position management, while mandating semi-annual public disclosure of liquidity risk management policies and ratios.
Government bond limits permitting banks to purchase, hold, or invest in government bonds and government-guaranteed bonds up to a maximum of 30 percent of the average total liabilities of the preceding month.
Feedback may be submitted via post or by email to csatnh@sbv.gov.vn by June 1, 2026.