New Liquidity Rules Could Expand Vietnamese Banks’ Lending Capacity

Vietnam bank liquidity rules will provide qualifying lenders with greater lending capacity under regulatory changes scheduled to take effect on December 1, 2026.

Circular 50, issued by the State Bank of Vietnam, will increase the maximum loan-to-deposit ratio to 95% from 85% for banks that adopt revised liquidity requirements early.

The new framework incorporates liquidity coverage and net stable funding ratios, with banks adopting these standards permitted to use the revised calculation and higher lending cap.

Institutions that do not opt in will remain subject to existing requirements until October 2028.

Brokerage MBS expects listed banks to benefit overall, particularly those with stronger equity positions, retained earnings and access to overseas funding.

However, the brokerage cautioned that rapid credit expansion and temporary liquidity measures could increase maturity mismatches and funding risks.

The changes could support lending growth while placing greater importance on effective liquidity and risk management.