Circular No. 26/2026/TT-NHNN stipulates the limits and ratios to ensure safety in the operations of the Vietnam Development Bank.

 

CIRCULAR

Prescribing limits and ratios for ensuring safety in operations of the Vietnam Development Bank

The State Bank of Vietnam issues this Circular prescribing limits and ratios for ensuring safety in operations of the Vietnam Development Bank based on:

 

Law on the State Bank of Vietnam No. 46/2010/QH12;

Law on Credit Institutions No. 32/2024/QH15 amended and supplemented by Law No. 96/2025/QH15;

Government Decree No. 26/2025/NĐ-CP on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam amended and supplemented by Government Decree No. 198/2026/NĐ-CP;

Government Decree No. 32/2017/NĐ-CP on state investment credit amended and supplemented by Government Decree No. 78/2023/NĐ-CP;

Government Decree No. 46/2021/NĐ-CP on financial management systems and performance evaluation of the Vietnam Development Bank amended and supplemented by Government Decree No. 266/2025/NĐ-CP;

Government Decree No. 95/2025/NĐ-CP on organization and operation of the Vietnam Development Bank;

At the proposal of the Director of the Credit Institution System Safety Supervision Department;

The Governor of the State Bank of Vietnam promulgates this Circular prescribing limits and ratios for ensuring safety in operations of the Vietnam Development Bank.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of Application

1. This Circular prescribes the limits and ratios for ensuring safety that the Vietnam Development Bank must maintain continuously, including:

a) Credit limit;

b) Liquidity reserve ratio;

c) Loan-to-deposit ratio.

2. Based on the results of supervision, inspection, and audit by the State Bank of Vietnam (hereinafter referred to as the State Bank) regarding compliance with laws on currency and banking activities within its jurisdiction, if necessary to ensure safety in the operations of the Vietnam Development Bank, the State Bank may require the Vietnam Development Bank to implement stricter limits and ratios than those prescribed in this Circular depending on the nature and degree of risk.

Article 2. Applicability

1. The Vietnam Development Bank.

2. Other organizations and individuals related thereto.

Article 3. Internal Regulations

1. The Vietnam Development Bank must issue internal regulations on credit granting and debt management, which must include at least the following contents:

a) Criteria for identifying a customer, a customer and associated parties, credit policies for a customer, a customer and associated parties, including provisions on credit granting conditions, credit limits, interest rates, documentation, procedures, credit granting review process, debt management. Associated parties are organizations and individuals as defined in the Law on Credit Institutions;

b) Provisions on the principle of分级翻译如下：

delegation and authorization for decision-making and approval of credit granting and risk management for a customer, a customer and associated parties, including provisions on the responsibilities and authorities of units and individuals in credit granting, credit quality management to ensure transparency, non-conflict of interest, and no concealment of credit quality.

2. The Vietnam Development Bank must issue internal regulations on liquidity management in accordance with this Circular and related documents, which must include at least the following contents:

a) Provisions on the delegation, authorization, functions, and duties of units and individuals in maintaining the liquidity reserve ratio;

b) Plans and measures to ensure the liquidity reserve ratio;

c) Guidance, monitoring, and internal auditing for maintaining the liquidity reserve ratio.

3. The internal regulations stipulated in Clause 1 and Clause 2 of this Article must be reviewed, examined, and evaluated periodically at least once a year and revised and supplemented (if necessary).

4. Within ten days from the date of issuance, amendment, supplementation, or replacement of the internal regulations stipulated in Clause 1 and Clause 2 of this Article, the Vietnam Development Bank must submit these documents directly or through postal service or electronic means to the State Bank (Credit Institution Management and Supervision Department) and the Ministry of Finance.

Article 4. Information Technology System

The Vietnam Development Bank must establish an information technology system to meet the following minimum requirements:

1. To store, access, and update databases; to statistically track and manage capital items, assets, and liabilities payable to serve the calculation, management, and supervision of limits and ratios for ensuring safety in operations.

2. To comply with statistical reporting systems and requirements set forth by the State Bank.

Chapter II

SPECIFIC PROVISIONS

Article 5. Credit Limit

The credit limit of the Vietnam Development Bank is determined based on the total outstanding credit balance of the Vietnam Development Bank (excluding credit transactions where the Vietnam Development Bank does not bear the risk) for a customer, a customer and associated parties as stipulated in Article 7 of Government Decree No. 32/2017/NĐ-CP on state investment credit, amended and supplemented by Government Decree No. 78/2023/NĐ-CP and other amending and supplementing documents (if any).

Article 6. Liquidity Reserve Ratio

1. The Vietnam Development Bank must calculate and manage the liquidity reserve ratio at the end of each working day from the effective date of this Circular until December 31, 2029, and at the end of each working day starting January 1, 2030.

2. The liquidity reserve ratio:

a) The Vietnam Development Bank must hold high-liquidity assets to reserve to meet payment needs due and unforeseen;

b) The liquidity reserve ratio is calculated according to the following formula:=Liquidity Reserve RatioHigh-Liquidity Assets Total Capital

x 100%

Wherein:

(i) High-liquidity assets are defined in the Appendix attached to this Circular;

(ii) Total capital includes all items under the capital section of the financial situation report, including: deposits from the National Treasury, financial institutions, credit institutions, economic organizations, customers; government budget loans, financial institutions, credit institutions; issuance of securities; other debts excluding the Risk Provision Fund;

c) High-liquidity assets and total capital as stipulated in Point b Clause 2 of this Article are calculated in Vietnamese dong, including Vietnamese dong and other freely convertible foreign currencies converted into Vietnamese dong at the central exchange rate announced by the State Bank for US dollars (USD) and the cross-exchange rate of Vietnamese dong against certain foreign currencies as specified by the State Bank's announcement of the central exchange rate of Vietnamese dong against US dollars (USD) and the cross-exchange rate of Vietnamese dong against certain foreign currencies.

Article 7. Loan-to-deposit ratio

1. The Vietnam Development Bank must calculate and manage the loan-to-deposit ratio at the end of each working day of every month from the date this Circular takes effect until December 31, 2029, and at the end of each working day starting from January 1, 2030, according to the following formula:

LDR=LD x 100%

In which:

- LDR: is the loan-to-deposit ratio;

- L: is the total outstanding loans as specified in Clause 2 of this Article;

- D: is the total funds used for lending, including deposits as specified in Clause 3 of this Article and capital as specified in Clause 4 of this Article.

- Total outstanding loans (L) and total funds used for lending (D) are calculated in Vietnamese dong, including Vietnamese dong and other freely convertible foreign currencies converted into Vietnamese dong based on the central exchange rate announced by the State Bank of Vietnam for the US dollar (USD) and the cross-exchange rate of the Vietnamese dong against certain other foreign currencies as prescribed by the State Bank of Vietnam regarding the announcement of the central exchange rate of the Vietnamese dong against the US dollar (USD) and the cross-exchange rate of the Vietnamese dong against certain other foreign currencies.

2. Total outstanding loans include:

a) Short-term export support loans;

b) Short-term special government program loans;

c) Medium-term investment credit loans;

d) Medium-term special government program loans;

đ) Long-term investment credit loans;

e) Long-term special government program loans;

g) Mandatory guarantee loans;

h) Other lending balances (excluding entrusted lending balances of organizations and individuals inside and outside the country that do not bear risk);

i) Balances of overdue debt repayment.

3. Funds raised for lending are deposits as prescribed by the Government's financial management system and performance evaluation regulations for the Vietnam Development Bank.

4. Capital used for lending is the capital of the Vietnam Development Bank as prescribed by the Government's financial management system and performance evaluation regulations for the Vietnam Development Bank, excluding the following items:

a) The remaining total value of all fixed assets (excluding land use rights granted by the State without payment of land use fees or leased but exempted from land lease fees) serving the operations of the Vietnam Development Bank shall not exceed 25% of the charter capital and additional reserve fund reflected in the bank’s accounting books;

b) The value of land use rights granted/leased by the State without payment of land use fees/land lease fees as prescribed by law;

c) The actual paid-in charter capital of the Vietnam Infrastructure and Financial Investment Corporation and other organizations (if any) as prescribed by law;

d) Financial reserve fund.

5. The Vietnam Development Bank must maintain the loan-to-deposit ratio at a maximum of 95%.

Chapter III

RESPONSIBILITIES OF THE VIETNAM DEVELOPMENT BANK AND

UNITS UNDER THE STATE BANK OF VIETNAM

Article 8. Vietnam Development Bank

1. Continuously comply with the limits and safety ratios in banking operations as stipulated in this Circular.

2. In case the Vietnam Development Bank fails to meet or is at risk of failing to meet the limits and safety ratios in banking operations as stipulated in this Circular, within a maximum period of 30 days from the date of non-compliance or risk of non-compliance, the Vietnam Development Bank must submit a remediation plan to ensure compliance with the limits and safety ratios in banking operations stipulated in this Circular directly or through postal service to the State Bank of Vietnam (Credit Institution Management and Supervision Department) and the Ministry of Finance.

3. Report fully, promptly, and accurately on the limits and safety ratios in banking operations as prescribed by the State Bank of Vietnam.

Article 9. State Bank of Vietnam Inspectorate

1. Inspect the implementation of regulations on limits and safety ratios in the operations of the Vietnam Development Bank.

2. Inspect the Vietnam Development Bank's internal regulations established under Article 3 of this Circular.

3. Handle violations of the Vietnam Development Bank according to its authority and legal provisions.

Article 10. Credit Institution Management and Supervision Department

1. Monitor the implementation of regulations on limits and safety ratios in the operations of the Vietnam Development Bank.

2. Receive internal regulations of the Vietnam Development Bank established under Article 3 of this Circular.

3. Apply measures according to its authority or propose relevant authorities to implement measures according to legal provisions against the Vietnam Development Bank.

4. Coordinate with the Forecasting and Statistics Department to develop statistical reporting forms on the implementation of limits and safety ratios prescribed in this Circular by the Vietnam Development Bank.

Article 11. Forecasting and Statistics Department

The Forecasting and Statistics Department is responsible for coordinating with related units to submit to the Governor of the State Bank of Vietnam guidelines for statistical reporting on the implementation of limits and safety ratios prescribed in this Circular by the Vietnam Development Bank.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 12. Effective Date

1. This Circular takes effect from August 9, 2026.

2. The following documents become invalid from the date this Circular takes effect:

a) Circular No. 07/2019/TT-NHNN dated July 3, 2019, issued by the Governor of the State Bank of Vietnam, prescribing limits and safety ratios in the operations of the Vietnam Development Bank;

b) Circular No. 07/2022/TT-NHNN dated June 30, 2022, issued by the Governor of the State Bank of Vietnam, amending and supplementing some articles of Circular No. 07/2019/TT-NHNN dated July 3, 2019, issued by the Governor of the State Bank of Vietnam, prescribing limits and safety ratios in the operations of the Vietnam Development Bank.

Article 13. Implementation Organization

Heads of units under the State Bank of Vietnam and the Vietnam Development Bank are responsible for organizing the implementation of this Circular./.

 

 

ANNEX

GUIDELINES FOR DETERMINING LIQUIDITY RESERVE RATIO

(Annexed to Circular No. 26/2026/TT-NHNN dated June 25, 2026, issued by the Governor of the State Bank of Vietnam)

1. Form for calculating "Highly Liquid Assets":

2. Guidelines for obtaining data:

Section 1: Cash balance on the accounting balance sheet.

Section 2: Settlement deposit balance and guarantee deposit balance at the State Bank on the accounting balance sheet.

Section 3: Book value of various securities used in transactions of the State Bank as prescribed by the State Bank.

Section 4: Settlement deposit balance with agency banks on the accounting balance sheet, excluding amounts already committed for specific settlement purposes.

Section 5: Unconditional deposit balance with credit institutions, branches of foreign banks within and outside the country on the accounting balance sheet.

Section 6: Book value on the accounting balance sheet of bonds and bills issued or guaranteed for payment by the Government and Central Banks of countries, rated from AA level or equivalent or corresponding rating scale of other independent credit rating organizations (Standard & Poor’s, Fitch Rating).

TThe time to extract data from Sections 1 to 6 is at the end of the month from the date this Circular takes effect until December 31, 2029, and at the end of each working day starting January 1, 2030.

3. Principles for calculating "Highly Liquid Assets":

(i) Sections 3 and 6 must meet the following requirements:

- Available for immediate payment or easily convertible into cash with low transaction costs;

- Not used to secure other financial obligations;

- Exclude balances of securities currently being discounted, rediscounted, pledged, or sold with a term;

- Exclude securities where the issuer has not fulfilled the obligation to pay interest and principal;

(ii) Highly liquid assets are securities used in transactions of the State Bank; types of bonds and bills issued or guaranteed for payment by the Government and Central Banks of countries, rated from AA level or equivalent or corresponding rating scale of other independent credit rating organizations (Standard & Poor’s, Fitch Rating), denominated in Vietnamese dong and freely convertible foreign currencies.