ON LIMITS AND PRUDENTIAL RATIOS IN THE OPERATIONS OF COMMERCIAL BANKS AND FOREIGN BANK BRANCHES

1. This Circular prescribes the limits and prudential ratios in the operations of commercial banks and foreign bank branches (hereinafter referred to as "banks") that must be maintained at all times, including:

a) Restrictions and limits on credit extension;

b) Liquidity coverage ratio (hereinafter referred to as "LCR");

c) Net stable funding ratio (hereinafter referred to as "NSFR");

d) Ratio of purchase, holding and investment in Government bonds and government-guaranteed bonds;

dd) Limits on capital contribution and purchase of shares;

e) Loan-to-deposit ratio (hereinafter referred to as "LDR");

g) Leverage ratio (hereinafter referred to as "LEV").

2. During the period of special control, banks shall not be required to comply with the provisions of Articles 136, 137, 138 and Clause 3 of Article 144 of the Law on Credit Institutions No. 32/2024/QH15, as amended by Law No. 96/2025/QH15 (hereinafter referred to as "the Law on Credit Institutions") and the related provisions of this Circular.

3. Supporting commercial banks and receiving commercial banks under compulsory transfer shall not be subject to the limit on the ratio of purchase, holding and investment in Government bonds and government-guaranteed bonds as prescribed in Point d of Clause 1 of Article 138 of the Law on Credit Institutions and the related provisions of this Circular.

4. For banks participating in programs and projects pursuant to decisions of the Government or the Prime Minister, the consideration of the funding sources and outstanding loan balances of such programs and projects when determining the limits and prudential ratios shall be carried out in accordance with decisions of the Government or the Prime Minister.

5. On the basis of the results of inspection, examination and supervision of banks, where necessary to ensure the safety of banking operations, depending on the nature and level of risk, the State Bank of Vietnam (hereinafter referred to as "the State Bank") shall have the right to require:

a) Banks to apply liquidity factors, cash inflow factors, cash outflow factors, available stable funding (ASF) factors and required stable funding (RSF) factors more stringently than those prescribed in this Circular for each balance portion or each specific component when calculating the LCR and the NSFR;

b) Banks that are not required to comply with the LDR as prescribed in Point d(ii) of Clause 5 of Article 13 of this Circular to continue to comply with the LDR as prescribed in this Circular upon request;

c) Banks to apply one or more limits or prudential ratios more stringently than those prescribed in this Circular;

d) Where compliance with the State Bank's requirements prescribed in Points a, b and c of this Clause results in the bank's violation of the limits and prudential ratios prescribed in this Circular, the State Bank shall prescribe the maximum period for the bank to ensure compliance with the provisions of this Circular.

Banks and organizations and individuals related to the limits and prudential ratios in banking operations.

For the purpose of this Circular, the following terms shall be construed as follows:

1. A client in credit extension, deposit-taking and other product and service relationships with a bank (hereinafter referred to as "client") is an organization (including credit institutions and foreign bank branches) or an individual as prescribed by law.

One client is one organization or one individual as prescribed by law.

2. Deposits are the principal balances arising from deposit-taking activities as prescribed in the Law on Credit Institutions.

3. Valuable papers are evidence confirming the debt repayment obligation between the issuer of the valuable paper and the holder thereof for a specified term, subject to interest payment conditions and other conditions. Valuable papers include bonds, public bonds, treasury bills, certificates of deposit and other types of valuable papers.

4. Investment in corporate bonds means the purchase or holding of corporate bonds, or the entrustment of another organization (including other credit institutions and foreign bank branches) to purchase or hold corporate bonds. The holding of corporate bonds shall not include the receipt of corporate bonds as collateral or the discounting and rediscounting of corporate bonds.

5. Irrevocable means an agreement with one or more of the following characteristics:

a) Agreements that cannot be revoked or changed in any manner once the agreement has been executed;

b) Agreements under which the client is required to pay a fee for the execution of the agreement and the revocation of such agreement results in the bank being required to pay compensation under the executed agreement.

6. Conditionally revocable means an agreement that may be revoked upon the occurrence of one of the following cases:

a) When the client's debt repayment capacity deteriorates as agreed or when the client violates the executed agreement;

b) The performance of obligations under the agreement with the client results in the bank's violation of the limits and prudential ratios and other relevant provisions of law in relation to the time of disbursement, payment or performance of other financial obligations under the agreement with the client, except for the case prescribed in Point b of Clause 5 of this Article;

c) Other cases of revocation not falling within the cases prescribed in Points a and b of this Clause, Point b of Clause 5 and Clause 7 of this Article.

7. Unconditionally revocable means an agreement that may be revoked without any condition or agreement with the client and such revocation does not create any risk for the bank.

8. Credit extension for investment in and trading of shares means the bank's extension of credit or entrustment of credit extension as prescribed by law to a client for the client to use funds for the purpose of investment in, trading of and holding of shares, or the bank's extension of credit to a securities company for on-lending to other organizations and individuals for investment in, trading of and holding of shares.

9. Credit extension for investment in and trading of corporate bonds means the bank's extension of credit or entrustment of credit extension as prescribed by law to a client for the client to use funds for the purpose of investment in, trading of and holding of corporate bonds, or the bank's extension of credit to a securities company for on-lending to other organizations and individuals for investment in, trading of and holding of corporate bonds.

10. Credit institutions and foreign bank branches are credit institutions and foreign bank branches established and operating in Vietnam in accordance with Vietnamese law.

11. A financial institution is an organization licensed to carry out one or more of the following activities: accepting deposits; lending; finance lease; payment services; payment intermediary services; issuance of negotiable instruments, bank cards and money transfer orders; bank guarantees and financial commitments; provision of foreign exchange services and monetary instruments on the money market; securities brokerage; securities investment advisory, securities underwriting; management of securities investment funds; management of securities investment portfolios; insurance business; currency exchange.

12. An overseas financial institution (including foreign credit institutions) is a financial institution established overseas in accordance with the laws of the relevant foreign country.

13. The average monthly total liabilities of a month equals the sum of the daily balances of the total liabilities item on the account balance sheet at the end of each day of the month divided by the total number of days in the month.

14. The conversion exchange rate of foreign currencies into Vietnamese dong for the calculation of the limits and prudential ratios under this Circular (hereinafter referred to as "the exchange rate") shall be determined as follows:

a) Where the date on which the prudential ratios and limits are calculated is not the last working day of the month, quarter or year, the conversion exchange rate into Vietnamese dong (hereinafter referred to as "VND") shall be the accounting exchange rate as prescribed by the State Bank and the chart of accounts of credit institutions;

b) Where the date on which the prudential ratios and limits are calculated is the last working day of the month, quarter or year:

 (i) For banks using VND as the accounting currency, the conversion exchange rate into VND shall be the conversion exchange rate applied when preparing the monthly, quarterly and annual account balance sheet as prescribed by the State Bank's regulations on the chart of accounts of credit institutions;

 (ii) For banks using foreign currency as the accounting currency, the conversion exchange rate into VND shall be the exchange rate applied to convert financial statements prepared in foreign currency into VND as prescribed by the State Bank's regulations on the financial reporting regime for credit institutions;

c) The gold price shall be determined as follows:

 (i) For banks engaged in gold trading, the bank shall use the selling price posted by the bank at the end of the reporting data date;

 (ii) For banks not engaged in gold trading, the bank shall use the selling price posted by the enterprise or credit institution that owns the gold brand at the end of the reporting data date;

d) Where the reporting data date is not a working day, the bank shall apply the exchange rate and gold price of the immediately preceding working day.

15. The right of rehypothecation must have all of the following characteristics:

a) It is the right of the bank under an agreement with the client where the law permits the bank to use the collateral for the client's obligations to the bank as collateral for a financial obligation of the bank to another organization during the term of the client's obligations to the bank;

b) The bank uses the client's assets prescribed in Point a of this Clause in the bank's derivative transactions with a third party for the purpose of hedging risks for transactions with the same client, and the third party shall not further re-hypothecate such assets.

16. A systemically important bank is a bank on the list of systemically important banks pursuant to a decision of the Governor of the State Bank.

17. Encumbered means assets of the bank or client that cannot be liquidated, sold, transferred or used in accordance with the law or agreements between the relevant parties.

Unencumbered means assets of the bank or client that are not encumbered.

18. Liquidity risk, reputational risk and stress testing are defined in accordance with the provisions of Circular No. 83/2025/TT-NHNN on internal control systems of commercial banks and foreign bank branches.

19. International financial institutions, receivables, secondary debt, repurchase agreements (repo), reverse repurchase agreements (reverse repo), financial instruments, financial assets, equity instruments, independent credit rating agencies and derivatives are defined in accordance with the provisions of Circular No. 14/2025/TT-NHNN on capital adequacy ratios for commercial banks and foreign bank branches.

1. Banks shall prescribe the following provisions for the management of limits and prudential ratios in their internal regulations, which shall include at least:

a) Methods for monitoring, managing and deciding on credit extension to clients where the total credit extended to such client and related persons reaches 1% of the equity of the bank, in cases where the client is required to disclose information on related persons in accordance with the law on credit extension;

b) Principles, criteria for assessing and determining the level of credit extension risk for categories of clients and fields in which the bank prioritizes or restricts credit extension, as the basis for preparation of annual business plans and strategies;

c) Consideration of credit extension and debt restructuring (including loan deferral and adjustment of repayment terms) shall be carried out in accordance with the principles of transparency, freedom from conflict of interest and non-concealment of credit quality, in which:

 (i) The person deciding on debt restructuring shall not be the same person as the person who decided on the credit extension or the chairperson of the council that decided on the credit extension;

 (ii) The chairperson of the council deciding on debt restructuring shall not be the chairperson of the credit extension council or the person who decided on the credit extension, and at least two-thirds (2/3) of the members of the council deciding on debt restructuring shall not be members of the credit extension council;

 (iii) Where the credit extension is approved by the Board of Directors or Board of Members of the commercial bank, the provisions of Points c(i) and c(ii) of this Clause shall not apply;

d) Regulations on credit extension to Directors and Deputy Directors of branches, affiliated units and equivalent positions of the bank ensuring the principles prescribed in Points a, b and c of this Clause. The determination of equivalent positions shall be carried out in accordance with the internal regulations of the bank;

dd) Regulations on the management of the equity structure and assets for the purpose of assessing the level and trends of risks, the impact of risks on equity requirements for risk mitigation; the scale and quality of equity, the capacity to withstand risks from macroeconomic factors, access to additional equity, the capacity for financial support from shareholders where necessary to ensure compliance with the minimum capital adequacy ratio; the provision of capital to subsidiaries and associate companies; short-term and long-term equity targets, estimated costs of additional equity and solutions for achieving equity targets. Regulations on the management of the equity structure and assets shall at least include:

 (i) Procedures and methods for monitoring and assessing the scale, components and quality of equity and the asset portfolio;

 (ii) Minimum capital adequacy management system;

 (iii) Early warning system, which identifies signs for early identification of risks and the risk of deterioration in the capital adequacy ratio, and monitoring and reporting thereon as prescribed;

 (iv) A plan for handling and reporting on individual and consolidated minimum capital adequacy ratios, which shall include regulations on measures for managing and developing equity and assets in response to deterioration in or violation of the minimum capital adequacy ratio; responsibilities, powers, obligations and coordination of relevant departments and individuals in the development of plans and handling measures in response to deterioration in or violation of the minimum capital adequacy ratio.

2. For activities of investment in corporate bonds; purchase and sale of debt; purchase and sale without recourse of documents under letters of credit; entrustment and receipt of entrustment for credit extension, investment in corporate bonds, purchase and sale of debt, purchase and sale without recourse of documents under letters of credit as prescribed by law for which the bank bears risks, the bank shall manage the limits and prudential ratios for such activities in the same manner as credit extension activities on the basis of the provisions of this Article, Article 9 of this Circular and in accordance with relevant operational documents.

3. Banks shall issue internal regulations on liquidity risk management as prescribed in Article 14 of this Circular.

4. The contents of internal regulations prescribed in Clauses 1 and 3 of this Article shall be reviewed and evaluated at least once per year and amended or supplemented as necessary. Within 10 days from the date of issuance, amendment or supplementation of internal regulations, banks shall submit them to the State Bank as prescribed in Clause 5 of this Article.

5. Banks shall submit internal regulations and reports to the State Bank (the Department of Credit Institution Management and Supervision or the Regional Branch depending on the entity subject to microprudential supervision) in one or more of the following forms:

a) Electronic reports via the State Bank's reporting system in accordance with the State Bank's guidelines;

b) Submission in person to the State Bank;

c) Submission by post;

d) Online submission (where applicable).

Banks shall have an interconnected information system to comply with the provisions of this Circular, meeting the following minimum requirements:

1. Store, access and add to the database on clients and the market; ensure risk management in accordance with the regulations of the State Bank and the internal regulations of the bank.

2. Compile statistics on, monitor and manage cash flows, capital items, assets and liabilities; calculate, manage and supervise the limits and prudential ratios in operations.

3. Carry out the statistical reporting regime as prescribed and as required by the State Bank.

1. The actual value of charter capital/assigned capital of a bank shall be determined in accordance with Clause 3 of Article 28 of the Law on Credit Institutions and shall satisfy the principles prescribed in Clause 2 of this Article.

2. Before determining the actual value of charter capital/assigned capital, the bank shall ensure:

a) Risk provisions and expenses are fully made as prescribed by law;

b) Receivable interest, fees and income are properly recognized as prescribed by law.

3. Banks shall regularly monitor and assess the actual value of charter capital/assigned capital and periodically report to the State Bank as prescribed in Clause 5 of Article 4 of this Circular on the actual value of charter capital/assigned capital as follows:

a) For banks whose annual financial reporting period ends on December 31:

No later than July 15 and January 15 each year, the bank shall report on the actual value of charter capital/assigned capital as at the end of June 30 and December 31;

b) For banks whose annual financial reporting period, as approved by the competent state authority, does not end on December 31:

No later than the 15th of the first month of the first and third accounting quarters, the bank shall report on the actual value of charter capital/assigned capital as at the last day of the immediately preceding accounting quarter;

c) Where adjustments by independent auditors (if any) arise after the reporting dates specified in Points a and b of this Clause, the bank shall supplement them in the next quarterly financial reporting period.

1. When the actual value of charter capital/assigned capital of a bank falls below legal capital, the bank shall:

a) Develop and implement, on its own initiative, a remedial plan to ensure the actual value of charter capital/assigned capital is at least equal to legal capital;

b) Within a maximum of 30 days from the date on which the actual value of charter capital/assigned capital falls below legal capital, submit a written report on the remedial plan and a commitment to implement the plan to the State Bank as prescribed in Clause 5 of Article 4 of this Circular, which shall contain at least the following:

 (i) The actual value of charter capital/assigned capital as prescribed in Article 6 of this Circular;

 (ii) The reason the actual value of charter capital/assigned capital fell below legal capital;

 (iii) Measures to ensure the actual value of charter capital/assigned capital does not fall below legal capital and to maintain the prudential ratios in operations;

c) Organize and implement remedial measures at the request of the State Bank (if any).

2. Measures to be applied by the State Bank when the actual value of charter capital/assigned capital of a bank falls below legal capital:

a) Carry out an assessment, inspection or examination, or require the bank to undergo independent audit to determine the actual value of charter capital/assigned capital in the remedial plan reported by the bank as prescribed in Clause 1 of this Article;

b) Require amendment, supplementation or completion of the bank's remedial measures when the actual value of charter capital/assigned capital falls below legal capital as set out in the plan prescribed in Clause 1 of this Article where necessary;

c) Supervise, inspect and examine the organization and implementation of the measures in the remedial plan, including the remedial measures required by the State Bank;

d) Depending on the degree of decrease in the actual value of charter capital/assigned capital relative to legal capital, the State Bank shall have the right to decide on the following specific remedial measures for each bank:

 (i) The measures prescribed in Clause 2 of Article 59 of the Law on the State Bank of Vietnam when the actual value of charter capital/assigned capital falls below 80% of legal capital;

 (ii) Apply restructuring measures as prescribed by law; revoke the license of a bank where the bank's actual value of charter capital/assigned capital falls below 50% of legal capital or the actual value of charter capital/assigned capital has been below legal capital continuously for 6 months despite the implementation of a remedial plan as prescribed in Clause 1 of this Article.

3. The Regional Branch may apply the remedial measures prescribed in Clause 2 of this Article to foreign bank branches subject to microprudential supervision, including:

a) The measures prescribed in Points a, b and c of Clause 2 of this Article;

b) The measures prescribed in Point d(i) of Clause 2 of this Article within the competence delegated by the Governor of the State Bank;

c) For remedial measures prescribed in Clause 2 of this Article that are beyond the competence of the Regional Branch, the Regional Branch shall submit them to the Governor of the State Bank for decision.

1. From time to time, where necessary, the Governor of the State Bank shall decide on the application of the LEV, including the minimum applicable threshold; the frequency, timing and method of reporting to the State Bank and other contents (if any).

2. The LEV formula:

Where:

a) T1: Tier 1 capital determined in accordance with the Governor of the State Bank's regulations on the capital adequacy ratio applied by the bank;

b) EM (Exposure measure): Total risk exposure determined in accordance with Appendix III enclosed with this Circular.

3. Outside the period of application of the LEV prescribed in Clause 1 of this Article, banks may manage the LEV in accordance with their internal regulations.

1. Banks shall use the equity determined in accordance with Clause 2 of this Article at the end of the immediately preceding working day to determine the restrictions and limits on credit extension as prescribed in Articles 135 and 136 of the Law on Credit Institutions.

2. Equity is the individual equity for commercial banks or the equity for foreign bank branches. Equity shall be determined in accordance with the Governor of the State Bank's regulations on the capital adequacy ratio applied by the bank.

3. Total credit extensions, including:

a) The principal balance (including both on-balance-sheet and off-balance-sheet principal balances) of lending, discounting, rediscounting, finance lease, factoring and other credit extension operations as prescribed by the State Bank (including credit extensions derived from capital sources of other juridical persons the risks of which are taken by the bank as prescribed by law);

b) Undisbursed loan limits; unused credit card limits; off-balance-sheet commitment balances of bank guarantee operations, issuance of letters of credit, confirmation of letters of credit, negotiation of payment under letters of credit, reimbursement under letters of credit and receipt of entrustment for issuance of letters of credit for which the bank bears risks as prescribed by law (excluding unconditionally revocable off-balance-sheet commitments);

c) The principal balance of credit extensions (including corporate bond investment balances) arising from entrustments to other credit institutions and foreign bank branches for credit extension for which the bank bears risks as prescribed by law;

d) The corporate bond investment balance (excluding special bonds and bonds directly issued to the credit institution selling debts to purchase non-performing loans at market value of the Vietnam Asset Management Company (VAMC));

dd) The amount of debt sold for which the bank has not yet received full payment pursuant to the agreement but has transferred ownership of the debt to the debt buyer as prescribed by law;

e) The amount of debt purchased for which the bank has made payment and the debt seller has transferred ownership of the debt to the bank as prescribed by law minus the amount paid by the client of the purchased debt to the bank (when this value is positive);

g) The outstanding balance of outright purchases without recourse of documents under letters of credit from the issuing bank or confirming bank where the bank makes outright purchases without recourse of documents under letters of credit (excluding outright purchases without recourse of documents under letters of credit issued by the bank itself).

4. Credit extension to entities prescribed in Clause 1 of Article 135 of the Law on Credit Institutions shall be carried out as follows:

a) For entities prescribed in Points a, b, c, d and e of Clause 1 of Article 135 of the Law on Credit Institutions: approved by the Board of Directors or Board of Members of the commercial bank, or the General Director (Director) of the foreign bank branch;

b) For entities prescribed in Point dd of Clause 1 of Article 135 of the Law on Credit Institutions: approved by the Board of Directors or Board of Members of the commercial bank, or the General Director (Director) of the foreign bank branch for credit extensions to assessors and credit extension approvers whose total credit outstanding at that bank is VND 10 billion or more or such lower amount as prescribed by the bank's internal regulations; other cases shall be handled in accordance with the bank's internal regulations.

5. Banks shall report on credit extensions to entities prescribed in Clause 1 of Article 135 of the Law on Credit Institutions arising up to the reporting date to the following:

a) The General Meeting of Shareholders at the time of the General Meeting of Shareholders;

b) The owner, capital contributors, managers and executives at the time of the credit extension;

c) The State Bank in accordance with the statistical reporting regime for credit institutions and foreign bank branches.

1. Banks may only extend credit with terms of up to one (01) year to clients for investment in and trading of corporate bonds if the following conditions are met:

a) The credit extension must comply with the limits and prudential ratios as prescribed by law;

b) The non-performing loan (NPL) ratio is below 3%;

c) The bank fully complies with the risk management requirements in accordance with Circular No. 83/2025/TT-NHNN and the regulations on asset classification, level and method of making risk provisions and the use of provisions for risk handling in the operations of credit institutions and foreign bank branches.

2. Banks shall not extend credit to clients for investment in and trading of corporate bonds in the following cases:

a) The collateral is bonds issued by a credit institution, related persons of a credit institution or a foreign bank branch;

b) The collateral is bonds of an enterprise or related persons of an enterprise that the borrowing client uses to purchase bonds of that enterprise;

c) The client is one of the entities prescribed in Clause 1 of Article 134 of the Law on Credit Institutions;

d) The client is a related person of the entities prescribed in Clauses 1 and 4 of Article 134 of the Law on Credit Institutions;

dd) The client is one of the entities prescribed in Clause 1 of Article 135 of the Law on Credit Institutions, or the client is a related person of an entity prescribed in Clause 1 of Article 135 of the Law on Credit Institutions;

e) For investment in bonds not listed on the securities market;

g) For investment in and trading of bonds of the bank itself or bonds of an enterprise that is a subsidiary of the bank;

h) The client is a subsidiary or associate company of the credit institution.

3. The total credit extended as prescribed in Clause 3 of Article 9 of this Circular for credit extension activities for investment in and trading of corporate bonds shall not exceed 5% of the charter capital/assigned capital of the bank.

1. Banks may only extend credit with terms of up to one (01) year to clients for investment in and trading of shares (including cases of credit extension to clients for entrustment to other individuals or organizations to purchase, hold, invest in and trade shares) if the following conditions are met:

a) The credit extension must comply with the limits and prudential ratios as prescribed by law;

b) The non-performing loan (NPL) ratio is below 3%;

c) Risk management requirements are fully complied with in accordance with Circular No. 83/2025/TT-NHNN and the regulations on asset classification, level and method of making risk provisions and the use of provisions for risk handling in the operations of credit institutions and foreign bank branches.

2. Banks shall not extend credit to clients for investment in and trading of shares in the following cases:

a) The collateral is shares of a credit institution, related persons of a credit institution or a foreign bank branch;

b) The collateral is shares of an enterprise or related persons of an enterprise that the borrowing client uses to purchase shares of that enterprise;

c) For investment in and trading of shares of credit institutions;

d) The client is one of the entities prescribed in Clause 1 of Article 134 of the Law on Credit Institutions;

dd) The client is a related person of the entities prescribed in Clauses 1 and 4 of Article 134 of the Law on Credit Institutions;

e) The client is one of the entities prescribed in Clause 1 of Article 135 of the Law on Credit Institutions, or the client is a related person of an entity prescribed in Clause 1 of Article 135 of the Law on Credit Institutions;

g) The client is a subsidiary or associate company of the credit institution.

3. The total credit extended as prescribed in Clause 3 of Article 9 of this Circular for credit extension activities for investment in and trading of shares shall not exceed 5% of the charter capital/assigned capital of the bank.

1. Banks shall determine the loan-to-deposit ratio in VND, including VND and other foreign currencies converted into VND (at the exchange rate prescribed in Clause 14 of Article 3 of this Circular) according to the following formula:

 

Where:

a) L: Total loans as prescribed in Clause 3 of this Article;

b) D: Total deposits as prescribed in Clause 5 of this Article.

2. Total loans, including:

a) The on-balance-sheet principal balance for which the bank bears risks arising from lending activities (including the principal balance of loans arising from received entrustments) to individuals and organizations;

b) The on-balance-sheet principal balance arising from entrustments to other credit institutions and foreign bank branches for lending as prescribed by law.

3. The total loans prescribed in Clause 2 of this Article shall be reduced by:

a) The loan balance extended to other credit institutions and foreign bank branches in Vietnam;

b) The outstanding State Bank refinancing balance not intended to support liquidity.

4. Total deposits, including:

a) The deposit balance of organizations, excluding the following:

 (i) The deposit balance of other credit institutions and foreign bank branches;

 (ii) The escrow and dedicated capital deposit balance of clients;

 (iii) The demand deposit balance of the State Treasury;

 (iv) 80% of the term deposit balance of the State Treasury or such other ratio as decided by the Governor of the State Bank from time to time;

b) The deposit balance of individuals, excluding escrows and dedicated capital deposits of clients;

c) The balance of bonds issued by the bank domestically that qualify for inclusion in Tier 2 capital in accordance with the Governor of the State Bank's regulations on the capital adequacy ratio applied by the bank;

d) Entrusted credit extension funds from the Government, individuals and other organizations (including other credit institutions and foreign bank branches) received by the bank, for which the bank bears risks when carrying out credit extension;

dd) The positive difference between the balance of credit received from and deposits received from other credit institutions and foreign bank branches minus the balance of credit extended to and deposits placed at other credit institutions and foreign bank branches;

e) Overseas borrowings (including bonds issued on international markets) of the bank. For foreign bank branches, overseas borrowings include borrowings from the parent bank and the parent bank's overseas branches;

g) Charter capital, assigned capital, fund for charter capital increase, development investment fund, financial reserve fund and share premium minus cumulative loss, the original cost of purchases of and investments in fixed assets, capital contributions and purchases of shares as prescribed by law, and the amount used to purchase treasury stock;

h) Undistributed profit minus receivable interest and fees plus payable interest and fees;

i) Exchange differences due to revaluation of foreign currency equity on the account balance sheet when converting financial statements prepared in foreign currency into VND.

5. The total deposits prescribed in Clause 4 of this Article shall be reduced by:

a) The on-balance-sheet principal balance for which the bank bears risks arising from other credit extension activities other than lending activities (including the balance of payments made on behalf of clients under off-balance-sheet commitments arising from credit extension activities and the principal balance of credit extensions arising from received entrustments) to individuals and organizations other than credit institutions and foreign bank branches in Vietnam;

b) The corporate bond investment balance (excluding bonds issued by other credit institutions in Vietnam and special bonds of VAMC);

c) The on-balance-sheet principal balance arising from entrustments to credit institutions and foreign bank branches for other credit extension activities other than lending activities.

6. Banks must maintain a maximum LDR of 95%.

7. The time of application of the LDR prescribed in Clause 1 of this Article shall be carried out in accordance with the provisions of Clause 5 of Article 13 of this Circular.

8. From the date of commencement of application of the LDR as prescribed in Clause 7 of this Article, banks shall report to the State Bank on the LDR in accordance with the statistical reporting regime for credit institutions and foreign bank branches.

1. From October 1, 2028, banks shall apply both the LCR and the NSFR in accordance with the roadmap prescribed in Point c of Clause 1 of Article 16, Clause 2 of Article 22 of this Circular and other provisions of this Section.

2. Banks may register for early application of the provisions on the LCR and NSFR as follows:

a) From the effective date of this Circular to before January 1, 2028, banks may submit a written registration to the State Bank (the Department of Credit Institution Management and Supervision or the Regional Branch depending on the entity subject to microprudential supervision) to register for application of the LCR and NSFR in accordance with the roadmap prescribed in Point c of Clause 1 of Article 16 and Clause 2 of Article 22 of this Circular;

b) From the effective date of this Circular to before January 1, 2033, banks may submit a written registration to the State Bank (the Department of Credit Institution Management and Supervision or the Regional Branch depending on the entity subject to microprudential supervision) to register for compliance with the minimum threshold of 100% for both the LCR and NSFR;

c) Banks must have an assessment report from the Board of Directors or Board of Members of the commercial bank, the General Director (Director) of the foreign bank branch and an assessment report from an independent audit organization confirming full compliance with the provisions of this Section (including the applicable starting threshold for each case prescribed in Points a or b of this Clause). The compliance assessment date shall be the last day of each month in the three consecutive months immediately preceding the date on which the bank submits its written registration to the State Bank. These reports must be enclosed with the bank's written registration;

d) From the first day of the month following the month in which the written registration is submitted as prescribed in Points a or b of this Clause, the bank shall apply the provisions on the LCR and NSFR at the registered threshold and other provisions of this Section.

3. Where the State Bank approves the application of the internal ratings-based approach as prescribed in Circular No. 14/2025/TT-NHNN before July 1, 2033, the bank shall comply with the minimum threshold of 100% for both the LCR and NSFR and other provisions of this Section within a maximum of 90 days from the date of the State Bank's approval.

4. From the effective date of this Circular to before the date on which the bank applies the provisions on the LCR and NSFR as prescribed in Clauses 1, 2 and 3 of this Article, banks shall comply with and report on the liquidity reserve ratio, 30-day solvency ratio, maximum ratio of short-term capital for provision of medium-term and long-term loans, and loan-to-deposit ratio as prescribed in Circular No. 22/2019/TT-NHNN on limits and prudential ratios in the operations of banks and foreign bank branches, as amended by Circular No. 26/2022/TT-NHNN, Circular No. 09/2024/TT-NHNN and Circular No. 25/2026/TT-NHNN (hereinafter referred to as "Circular No. 22/2019/TT-NHNN").

5. From the date on which the bank applies the provisions on the LCR and NSFR as prescribed in Clauses 1, 2 and 3 of this Article, the bank shall:

a) Not be required to comply with or report on the LDR as prescribed in Circular No. 22/2019/TT-NHNN;

b) Be required to comply with and report on the LDR as prescribed in Article 12 of this Circular, except as prescribed in Point d of this Clause;

c) Not be required to comply with but still required to report on the liquidity reserve ratio, 30-day solvency ratio and maximum ratio of short-term capital for provision of medium-term and long-term loans as prescribed in Circular No. 22/2019/TT-NHNN, except as prescribed in Point d of this Clause;

d) Where the bank applies the minimum threshold of 100% for both the LCR and NSFR, the bank shall:

 (i) Not be required to comply with or report on the ratios prescribed in Point c of this Clause;

 (ii) Not be required to comply with but still required to report on the ratio prescribed in Point b of this Clause.

1. Banks shall carry out liquidity risk management in accordance with Circular No. 83/2025/TT-NHNN. Specifically for liquidity risk management by currency type within the LCR, banks shall carry out liquidity management by the currency type that the bank is required to apply from time to time in accordance with the law on LCR calculation.

2. When carrying out liquidity risk management, banks shall have appropriate assumptions regarding the liquidity of assets and access to funding sources during periods of stress. During periods of stress, the requirements for effective liquidity risk management, control functions, limit systems and the volume of high-quality liquid assets (hereinafter referred to as "HQLA") shall not be influenced or driven by competitive pressure or business performance results to meet liquidity needs.

3. Banks shall develop plans and carry out communication to the necessary parties as prescribed by internal regulations; develop contingency funding plans for the bank, liquidity reserves and diversification of funding sources in the event of liquidity issues to minimize the likelihood of contagion due to reputational risk.

4. Banks shall consider market characteristics and assess the capacity for currency conversion under stress conditions when managing liquidity in material currencies (VND and material foreign currencies as determined in accordance with the bank's internal regulations).

5. Banks shall:

a) Manage the liquidity of on- and off-balance-sheet activities, the liquidity of assets and liabilities, the degree of maturity mismatch between fund mobilization and fund use, and the diversity in business models and fund mobilization strategies;

b) Develop plans and establish the necessary limits in internal control activities to increase liquidity reserves to ensure the bank can respond to periods of increased liquidity demand (including year-end periods, public holidays and tax settlement periods);

c) Develop provisions on the methodology for determining excess balances as required in the product policy for operational deposits based on data and the payment needs of clients or groups of clients in the bank's internal regulations.

6. Banks shall carry out intraday liquidity management in accordance with the following principles:

a) The objectives of intraday liquidity management shall at least include:

 (i) Meeting payment and settlement obligations on time in both normal and stress conditions;

 (ii) Identifying and prioritizing time-specific obligations and other important obligations to meet as expected and fulfilling less important obligations as early as possible. The determination of important and less important obligations shall be made in accordance with the bank's internal regulations;

b) The contents of intraday liquidity management shall at least include:

 (i) The minimum information required for the management of intraday liquidity on the following day, including the qualifying HQLA worksheet, cash inflows and cash outflows at the end of the immediately preceding working day as prescribed in Appendix I enclosed with this Circular;

 (ii) Banks shall measure expected daily gross liquidity inflows and outflows and the range of potential net funding shortfalls that may arise at different times during the day;

 (iii) Banks shall monitor the liquidity position and manage intraday liquidity position changes (including temporary positions that are netted out at end of day (such as payments, disbursements, lending and intraday borrowing));

 (iv) Banks shall have the capacity to access liquidity sources to meet intraday liquidity needs;

 (v) Banks shall have available collateral that can be used to access liquidity sources, manage such collateral and have a mechanism for using such collateral when necessary to meet intraday liquidity needs;

 (vi) Banks shall have the capacity to manage the timing of outflows to ensure alignment with the bank's intraday liquidity objectives;

 (vii) Banks shall have contingency plans for disruptions to intraday liquidity sources or unusual intraday liquidity demand arising. The information system shall be sufficiently flexible to supplement and establish warning mechanisms and liquidity limits (especially for online activities) to ensure timely intraday liquidity management;

c) Banks shall have internal regulations, processes and systems to manage intraday liquidity in markets and currencies in which the bank has large payment flows and transactions as prescribed by the bank's internal regulations;

d) Banks shall still ensure that they have an intraday liquidity management mechanism that timely meets obligations that may arise in cases where correspondents or custodians fail to fully perform their obligations agreed with the bank;

dd) Each year, banks shall compile, compile statistics on and analyze events that occurred during intraday liquidity management on each day of the year to assess the appropriateness of the liquidity risk management regulations; amend and supplement the liquidity risk management regulations (including intraday liquidity management regulations) if necessary. Events to be compiled shall at least include: withdrawals exceeding expectations; instances of borrowing from other credit institutions or foreign bank branches to meet temporary payment obligations; instances of clients making early withdrawals or premature redemptions of term deposits with remaining terms of more than 30 days; instances where correspondents or custodians fail to perform their agreed obligations and the bank must implement alternative measures.

7. Banks shall carry out collateral management covering at least the following:

a) Banks shall maintain a list, develop criteria and monitor the status of assets being used as collateral pursuant to agreements, assets that can be used as collateral for long-term, short-term and intraday fund mobilization; conditions required for each type of asset to serve as collateral in transactions with the State Bank and market counterparties;

b) When using derivative instruments, banks shall take into account the possibility of additional collateral requirements arising under agreements due to market fluctuations, changes in credit ratings, changes in the bank's financial situation and other trigger events.

8. Banks shall carry out management of qualifying HQLA covering at least the following:

a) Banks shall maintain a qualifying HQLA volume sufficient to meet net cash outflow needs in accordance with stress testing scenarios and the minimum LCR thresholds, in which:

 (i) Liquidity need estimates during periods of stress shall include the possibility of capital withdrawals combined with assumptions regarding the loss or reduction of fundraising from various types of funding sources;

 (ii) The volume of HQLA shall be consistent with the bank's risk appetite. Factors to be considered include assumptions about cash flow gaps, the degree of volatility in HQLA values based on market factors, the severity of stress, liquidation values and amounts raised from using assets as collateral under stress conditions;

b) Banks shall assess the capacity for liquidation, sale, transfer and use of each type of asset in accordance with each stress testing scenario.

9. Banks shall carry out liquidity stress testing in accordance with Circular No. 83/2025/TT-NHNN and the following:

a) Within 30 days from the end of the quarter in which the liquidity risk stress testing is conducted, banks shall submit a liquidity risk stress testing results report to the State Bank (the Department of Credit Institution Management and Supervision or the Regional Branch depending on the entity subject to microprudential supervision). The authority for approving the stress testing results report shall be the approval level for risk management reports as prescribed in Circular No. 83/2025/TT-NHNN;

b) The liquidity risk stress testing report shall include the contents prescribed in Point d of Clause 4 of Section II of Appendix II of Circular No. 83/2025/TT-NHNN, in which the stress testing results shall assess the net cash outflows, days of survival, the bank's funding and asset structure, the LCR and NSFR under the bank's stress testing scenarios and other detailed information (if any) as required by the State Bank;

c) When conducting stress testing, banks shall:

 (i) Determine the historical data observation period (including internal data and market data) for the development of stress testing scenarios, which shall be at least 10 consecutive years immediately preceding the date of the stress testing;

 (ii) Determine the stress period within the observation period prescribed in Point c(i) of this Clause, during which liquidity stress is assumed to have occurred to reflect the behavior of different groups of clients, the certainty of cash inflows, the possibility of cash outflows and the bank's funding and asset structure. This period shall be determined in accordance with internal regulations consistent with the nature of the LCR and NSFR;

 (iii) Develop scenario assumptions and parameters (including at least liquidity factors, cash outflow factors and cash inflow factors), assess and produce stress testing results on the basis of data within the observation period and other relevant information as prescribed by internal regulations. For bank-specific scenarios and combined scenarios, cash outflow factors for deposit types shall be determined by the bank but shall be at least equal to the cash outflow factors prescribed in this Circular.

1. On the basis of the results of inspection, examination and supervision of banks, the State Bank (the State Bank Inspectorate, the Department of Credit Institution Management and Supervision, the Regional Branch depending on the entity subject to microprudential supervision) shall have the right to require banks to implement one or more of the corrective measures prescribed in Clause 2 of this Article with respect to liquidity risk management issues identified in the course of inspection, examination and supervision.

2. The corrective measures are as follows:

a) Assess and improve internal policies, controls and reporting mechanisms to the bank's competent authorities;

b) Assess and improve the contingency funding plan;

c) Measures to reduce the level of liquidity risk (such as limiting the size and maturity mismatch between fund mobilization and fund use, and maintaining a higher qualifying HQLA volume);

d) Restrict credit extension, capital contribution, share purchase or business expansion activities;

dd) Require the application of a higher capital adequacy ratio than that prescribed by the State Bank's regulations on capital adequacy ratios;

e) Other necessary requirements to ensure compliance with the provisions of law.

1. The LCR formula:

a) Types of LCR, including:

 (i) VND-equivalent LCR (including VND and other foreign currencies converted into VND at the exchange rate prescribed in Clause 14 of Article 3 of this Circular);

 (ii) VND LCR (hereinafter referred to as "VND LCR");

 (iii) LCR for a material foreign currency (hereinafter referred to as "material foreign currency LCR");

b) The LCR is determined by the following formula:

Where:

 (i) Qualifying HQLA value: The portion of qualifying HQLA value prescribed in Article 20 of this Circular and Section A of Appendix I enclosed with this Circular;

 (ii) Net cash outflow in the next 30 days from the reporting data date for LCR calculation is determined as prescribed in Article 21 of this Circular.

c) Banks shall apply the minimum thresholds for the individual VND-equivalent LCR according to the following roadmap:

d) Banks may manage the consolidated LCR and material foreign currency LCR in accordance with their internal regulations;

dd) Banks shall manage the individual VND LCR. Management shall be carried out in accordance with the bank's internal regulations consistent with the provisions of Circular No. 83/2025/TT-NHNN and this Circular.

2. Banks shall report to the State Bank on the individual LCR (including the VND-equivalent LCR and the VND LCR) in accordance with the statistical reporting regime for credit institutions and foreign bank branches.

1. Banks shall have a department at the headquarters to monitor and manage the LCR prescribed in Point c of Clause 1 of Article 16 of this Circular on a daily basis, managed by the General Director (Director) or the authorized Deputy General Director (Deputy Director).

2. When a bank violates the individual VND-equivalent LCR:

a) The State Bank shall consider imposing administrative sanctions in the monetary and banking sector and carry out LCR supervision on the basis of the bank's reports;

b) The bank shall immediately implement the following:

 (i) Apply one or more self-remediation measures upon LCR violation, including: borrowing from other credit institutions or foreign bank branches, borrowing from overseas financial institutions or entering into irrevocable term deposit commitments, irrevocable loan commitments and other irrevocable measures with other credit institutions, foreign bank branches or overseas financial institutions to ensure payment capacity;

 (ii) Where the bank is required to use self-remediation measures prescribed in Point b(i) of this Clause at a level of 10% or more of the qualifying HQLA value, the State Bank shall carry out enhanced supervision and implement remedial measures as prescribed by law;

 (iii) Each day, the bank shall submit a written report on the temporarily deficient LCR, the measures implemented to remedy the deficiency prescribed in Point b(i) of this Clause and any new situations arising that aggravate the liquidity deficiency (if any). The reporting deadline for each day's data shall be before 12:00 noon of the following day. On the day of the first report from the time of the LCR violation, before 5:00 p.m., the bank shall additionally report at least the following:

- The reason the LCR fell below the threshold applicable to the bank (including whether it is bank-specific or system-wide stress) and the magnitude of the components contributing to the LCR decrease;

- The measures expected to be implemented to comply with the applicable LCR threshold (such as restructuring assets and funding sources and accessing alternative funding sources);

- The expected duration of the LCR falling below the applicable threshold;

- The bank's financial condition and risk profile, including activities, the level of compliance with other supervisory requirements, internal risk management systems, controls and other management processes;

- An assessment of historical price movements and expected price movements of qualifying HQLA within the timeframe consistent with the bank's LCR improvement plan;

 (iv) The bank shall submit the reports prescribed in Point b(iii) of this Clause to the State Bank (the Department of Credit Institution Management and Supervision or the Regional Branch depending on the entity subject to microprudential supervision) as prescribed in Clause 5 of Article 4 of this Circular for the data at the end of the immediately preceding working day;

 (v) After implementing the self-remediation measures prescribed in Point b(i) of this Clause, if the bank continues to experience difficulties with payment capacity, the bank shall immediately report to the State Bank (the Department of Credit Institution Management and Supervision or the Regional Branch depending on the entity subject to microprudential supervision).

3. Banks may only grant loans and enter into irrevocable term deposit commitments and irrevocable loan commitments with other credit institutions and foreign bank branches to remedy payment capacity deficiencies if the LCR as prescribed in Article 16 of this Circular is still maintained after carrying out such activities.

1. A bank is at risk of losing payment capacity when the qualifying HQLA value at the time of LCR calculation falls below 90% of the qualifying HQLA value that the bank is required to maintain for LCR compliance under this Circular for 30 consecutive days.

2. A bank loses payment capacity when it is unable to make payment of debt obligations within 30 days from the due date.

3. When at risk of or experiencing loss of payment capacity, banks shall promptly notify the State Bank (the Department of Credit Institution Management and Supervision or the Regional Branch depending on the entity subject to microprudential supervision) of the actual situation, cause, measures already applied, measures expected to be applied for remediation and proposals and recommendations.

1. High-quality liquid assets include Level 1 assets and Level 2 assets. Level 2 assets include Level 2A assets and Level 2B assets. Level 1 assets, Level 2A assets and Level 2B assets are determined as prescribed in Appendix I enclosed with this Circular.

2. Banks may diversify HQLA depending on market conditions and the scale and complexity of the bank's operations in accordance with the bank's internal regulations.

1. Qualifying high-quality liquid assets are HQLA that fully meet the operational requirements prescribed in Clause 2 of this Article. Qualifying HQLA are used for LCR calculation.

2. Operational requirements for HQLA:

a) HQLA must be available for the bank to convert into cash through such means as outright sale or repo transactions or transactions with the State Bank, to remedy deficiencies during the 30-day stress period without restrictions on the use of the proceeds;

b) Banks shall assess the convertibility to cash and availability of assets in accordance with the bank's internal regulations consistent with market conditions and the bank's operational characteristics (including convertibility to cash when conducting transactions with the State Bank as prescribed by law);

c) Assets in the qualifying HQLA portfolio must be unencumbered, in which:

 (i) Where a financial asset (other than cash) is partially encumbered, the entire asset shall be deemed encumbered;

 (ii) Financial assets received from reverse repurchase agreement (reverse repo) transactions may be included in the qualifying HQLA portfolio where the following conditions are satisfied:

- The bank has received ownership;

- The bank has not used them for fund mobilization through such activities as pledging, mortgaging and discounting;

- The bank has the right to use the financial asset without restriction under the law and agreements between the relevant parties;

 (iii) HQLA that have been deposited and secured at the State Bank are encumbered HQLA but the unused limit established on the basis of such HQLA as security in transactions with the State Bank may be included in the qualifying HQLA value as prescribed in Clause 4 of Section I of Part A of Appendix I enclosed with this Circular;

d) The HQLA portfolio must be controlled by the department responsible for liquidity management of the bank and prescribed in the bank's internal regulations for conversion of assets into cash within the standard settlement time for that type of asset in the relevant jurisdiction.

Such department must have authority pursuant to the bank's internal regulations to control and decide on the conversion of assets in the HQLA portfolio into cash.

Control must be demonstrated by maintaining assets in a separate portfolio managed by such department with the sole purpose of using them as a contingency funding source, or the department being able to convert assets into cash at any time during a stress period. The proceeds must be under the management and use authority of such department to remedy the bank's liquidity deficiencies during a stress period even when directly conflicting with the announced business strategy or risk management approach;

dd) Qualifying HQLA that are hedged against market risk may still be included in the qualifying HQLA portfolio. The value of qualifying HQLA when calculating the qualifying HQLA value is the market value minus the costs arising when the hedging contract is closed before maturity;

e) Banks shall determine the HQLA portfolio on a daily basis to ensure it reflects changes in the law, the market and other fluctuations;

g) Banks shall exclude assets from the qualifying HQLA portfolio where assets can only be converted into cash through outright sale but such assets cannot be sold or can only be sold with a markdown exceeding the maximum markdown for each type of asset in the HQLA portfolio as prescribed in Appendix I enclosed with this Circular;

h) Banks shall not include in the HQLA portfolio assets or cash flows arising from assets that the bank has received pursuant to the right of rehypothecation but the owner of such asset has the contractual right to withdraw the asset during the 30-day stress period;

i) Where collateral or margin for derivative product transactions that the bank has the unlimited right to use as prescribed by law and by agreement between the relevant parties, the bank may include them in the HQLA portfolio provided that the bank has recognized a cash outflow as prescribed in Section IV of Part B of Appendix I enclosed with this Circular;

k) Where qualifying HQLA become non-qualifying, the bank may continue to hold such assets in the qualifying HQLA portfolio for 30 days from the date on which the qualifying HQLA becomes non-qualifying.

1. Total net cash outflows in the next 30-day period are the total cash outflows minus the total cash inflows in the next 30 days.

2. The formula for calculating total net cash outflows:

Total net cash outflows = Total cash outflows − Min (Total cash inflows, 75% × Total cash outflows)

Where:

a) Total cash outflows equal the balance of debt obligations and off-balance-sheet commitments multiplied by the cash outflow factor. Total cash outflows are determined as prescribed in Part B of Appendix I enclosed with this Circular;

b) Total cash inflows equal the balance of each type of asset and off-balance-sheet commitment multiplied by the cash inflow factor, but not exceeding 75% of total cash outflows. Total cash inflows are determined as prescribed in Part C of Appendix I enclosed with this Circular.

3. Principles for calculating net cash outflows:

a) Only cash flows that are likely to arise within the next 30 days from the reporting data date for LCR calculation shall be included;

b) Principal and interest arising in the next 30 days shall be included in the cash inflow or cash outflow value;

c) Assets in the qualifying HQLA portfolio that have been included in the qualifying HQLA shall not have their resulting cash inflows included as cash inflows;

d) Where an item may be simultaneously recorded in multiple cash outflow categories with different cash outflow factors, the bank shall calculate the cash outflow corresponding to the highest cash outflow factor for such item.

1. The NSFR is calculated as follows:

Where:

a) Available Stable Funding (ASF) is the value of the ASF portfolio as prescribed in Article 23 of this Circular and Appendix II enclosed with this Circular;

b) Required Stable Funding (RSF) is the value of the RSF portfolio as prescribed in Article 24 of this Circular and Appendix II enclosed with this Circular.

2. Banks shall apply the minimum thresholds for the individual NSFR (including items in VND and other foreign currencies converted into VND at the exchange rate prescribed in Clause 14 of Article 3 of this Circular) according to the following roadmap:

3. Banks may manage the consolidated NSFR in accordance with their internal regulations.

4. Banks shall report to the State Bank on the individual NSFR in accordance with the statistical reporting regime for credit institutions and foreign bank branches.

5. When calculating the NSFR, banks shall apply the following principles:

a) Use definitions and terminology consistent with those used when calculating the LCR;

b) Apply the provisions on capital components, types of real estate receivables, risk weights and the use of independent credit ratings in accordance with the Governor of the State Bank's regulations on the capital adequacy ratio for commercial banks and foreign bank branches applied by the bank, including:

 (i) Circular No. 41/2016/TT-NHNN on capital adequacy ratios for banks and foreign bank branches, as amended by Circular No. 22/2019/TT-NHNN and Circular No. 22/2023/TT-NHNN (hereinafter referred to as "Circular No. 41/2016/TT-NHNN"); or

 (ii) The standardized approach prescribed in Circular No. 14/2025/TT-NHNN, even in cases where the bank calculates the capital adequacy ratio using the internal ratings-based approach.

6. Receivables and payables in repo and reverse repo transactions shall be calculated on the basis of separating the total receivable value and the total payable value. The total receivable value shall be included in the RSF, and the total payable value shall be included in the ASF.

1. Available Stable Funding (ASF) is calculated as follows:

2. Banks shall determine the ASF portfolio and ASF factors in accordance with Part A of Appendix II enclosed with this Circular.

3. The ASF portfolio shall be classified into maturity buckets and the maturity is the period from the date of NSFR calculation to the earliest date on which an obligation must be performed under the agreement consistent with the relevant provisions of law on the equity instrument or liability. Banks shall determine the maturity in accordance with the following principles:

a) Where the bank has no right of early redemption or early repayment and the client has no right of early sale or early withdrawal pursuant to the agreement consistent with the relevant provisions of law, the maturity shall be determined on the basis of the maturity date of the equity instrument or liability under such agreement;

b) Where the bank has no right of early redemption or early repayment and the client has the right of early sale or early withdrawal pursuant to the agreement consistent with the relevant provisions of law, the maturity shall be determined on the basis of the earliest date on which the client may exercise such right under the agreement;

c) Where the bank has the right of early redemption or early repayment and the client has no right of early sale or early withdrawal pursuant to the agreement consistent with the relevant provisions of law, the maturity shall be determined as follows:

 (i) Where the bank has not yet notified of the exercise of the right of early redemption or early repayment, the maturity shall be determined pursuant to Point a of this Clause;

 (ii) Where the bank has notified of the exercise of the right of early redemption or early repayment, the maturity shall be determined as the earliest date in the notice on which the bank may exercise such right under the agreement;

d) Where the bank has the right of early redemption or early repayment and the client has the right of early sale or early withdrawal pursuant to the agreement consistent with the relevant provisions of law, the maturity shall be determined as the earliest of the dates determined pursuant to Points b or c of this Clause;

dd) Where the bank or client has the right to extend the time for performance of obligations under the agreement consistent with the relevant provisions of law (including debt restructuring, extension of corporate bond maturities and agreements of a similar nature to debt restructuring), the bank shall assume that the relevant parties do not exercise such right and the maturity shall be determined pursuant to Points a, b, c and d of this Clause;

e) Where the bank is required to make early redemption or early repayment pursuant to inspection, examination or administrative sanction decisions (hereinafter referred to as "early repayment pursuant to inspection or examination conclusions") of the competent state authority, the maturity shall be determined by the deadline for early repayment pursuant to such inspection or examination conclusions. Where the bank fails to comply with the early repayment pursuant to inspection or examination conclusions, the bank shall apply an ASF factor of 0% to the entire outstanding balance required for early repayment remaining as at the date of NSFR calculation;

g) For funding with multiple different repayment schedules pursuant to the agreement, the bank shall determine each repayment portion corresponding to the repayment date for classification and application of the corresponding ASF factor.

1. Required Stable Funding (RSF) is calculated as follows:

2. Banks shall determine the RSF portfolio and RSF factors in accordance with Appendix II enclosed with this Circular.

3. The RSF portfolio shall be classified into maturity buckets and the maturity is the period from the date of NSFR calculation to the latest date on which an obligation must be performed under the agreement consistent with the relevant provisions of law on the asset. Banks shall determine the maturity of unencumbered assets in accordance with the following principles:

a) Where the bank and the client have no right to extend the time for performance of obligations under the agreement consistent with the relevant provisions of law, the maturity shall be determined on the basis of the maturity date of the asset under such agreement;

b) Where the bank has no right and the client has the right to extend the time for performance of obligations under the agreement consistent with the relevant provisions of law, the maturity shall be determined on the basis of the latest date on which the client may extend under the agreement;

c) Where the bank has the right and the client has no right to extend the time for performance of obligations under the agreement consistent with the relevant provisions of law, the maturity shall be determined as follows:

 (i) Where the bank may carry out debt restructuring for the client pursuant to the law and such law specifies a maximum period for restructuring, the maturity shall be determined to include the maximum restructuring period under the law;

 (ii) Where the bank may carry out debt restructuring for the client pursuant to agreement, the maturity shall be determined on the basis of the remaining maturity of the asset including the restructured period, or determined pursuant to Point a of this Clause where the bank does not carry out restructuring;

 (iii) For cases not falling within Cases c(i) or c(ii) of this Clause, the maturity shall be determined on the basis of the latest date specified in the bank's extension decision, or determined pursuant to Point a of this Clause where the bank does not carry out extension.

d) Where the bank has the right and the client has the right to extend the time for performance of obligations under the agreement consistent with the relevant provisions of law, the maturity shall be determined on the basis of the later of the dates determined pursuant to Points b or c of this Clause;

dd) Where the bank has the right of early sale or early withdrawal and the client has the right of early redemption or early repayment pursuant to the agreement consistent with the relevant provisions of law, the bank shall assume that the relevant parties do not exercise such right and the maturity shall be determined pursuant to Points a, b, c and d of this Clause.

4. For items in the RSF portfolio that are encumbered, the RSF factor shall be determined according to the remaining encumbrance period as follows:

a) A remaining encumbrance period of one year or more shall receive an RSF factor of 100%;

b) A remaining encumbrance period of from 6 months to below 1 year, the RSF factor shall be determined as follows:

 (i) Where, if unencumbered, the asset would receive an RSF factor of 50% or below, then when encumbered such asset shall receive an RSF factor of 50%;

 (ii) Where, if unencumbered, the asset would receive an RSF factor above 50%, then when encumbered such asset shall retain the higher RSF factor;

c) A remaining encumbrance period of below 6 months shall receive the same RSF factor as if the asset were unencumbered.

5. For loans with multiple different repayment schedules pursuant to the agreement, the bank shall determine each repayment portion corresponding to the repayment date for classification and application of the corresponding RSF factor.

6. Banks shall calculate the RSF portfolio value for assets for which a purchase order has been executed and exclude assets for which a sale order has been executed, even if such assets have not yet been reflected on the Statement of Financial Position, where the following conditions are met:

a) The assets are not assets arising from derivative product transactions, repo or reverse repo transactions;

b) Such assets will be reflected on the bank's Statement of Financial Position upon settlement.

1. Derivative liabilities

Derivative liabilities are calculated based on the replacement cost of the derivative contract when the contract has a negative value (the bank has an obligation to make payment to the counterparty under the derivative agreement based on mark-to-market or mark-to-model valuation).

Where a derivative contract has a qualifying bilateral netting agreement as defined in Clause 9 of Appendix II of the Circular on capital adequacy ratios for commercial banks and foreign bank branches, the replacement cost of such contract must be the net replacement cost.

2. NSFR derivative liabilities

NSFR derivative liabilities = Derivative liabilities − Variation margin in the form of financial assets

Where:

a) Derivative liabilities as prescribed in Clause 1 of this Article;

b) Variation margin is the value of margin assets as agreed and as prescribed by law between the relevant parties. Where the actual value of margin collateral exceeds the value required to be margined pursuant to the agreement, the excess margin collateral value shall be treated as a loan for RSF calculation purposes as prescribed in Appendix II enclosed with this Circular.

3. Derivative assets

Derivative assets are calculated based on the replacement cost of the derivative contract when the contract has a positive value (the counterparty has an obligation to make payment to the bank under the derivative agreement based on mark-to-market or mark-to-model valuation).

Where a derivative contract has a qualifying bilateral netting agreement, the replacement cost of such contract must be the net replacement cost.

4. NSFR derivative assets

a) NSFR derivative assets = Derivative assets − Cash collateral received as variation margin

Where:

 (i) Derivative assets as prescribed in Clause 3 of this Article;

 (ii) Cash collateral received as variation margin prescribed in Point b of this Clause;

b) Cash collateral received as variation margin is the value of cash margin satisfying all of the following conditions to be treated as a pre-settlement payment by the client:

 (i) The cash margin amount, adjusted for market movements, is paid to eliminate the entire mark-to-market risk of the receivable in the derivative product transaction. Such margin amount is required by the bank, subject to thresholds or minimum transfer amounts, and must be transferred by the client to the bank;

 (ii) The bank may use such funds as its own funds without restriction under the law or agreements with the client on the use of such funds;

 (iii) The mark-to-market adjusted cash margin for the client is monitored at least daily based on the market value of the derivative product transaction position. The client's payment may be made on the same day or on the morning of the following business day based on the previous day's closing price;

 (iv) The derivative product transaction and the mark-to-market adjusted cash margin must be prescribed in the netting agreement between the parties in the derivative product transaction. Such agreement must permit the parties to agree to net payment obligations, including the mark-to-market adjusted cash margin in the event of one party's default or bankruptcy. Such agreement must be legally effective in all relevant jurisdictions;

c) Liabilities (other than cash) on the Statement of Financial Position relating to variation margin received by the bank that do not meet the criteria prescribed in Point b of this Clause, or initial margin received or the amount of actual margin collateral exceeding the amount required to be margined pursuant to the agreement, shall not be netted against derivative assets and shall be subject to an ASF factor of 0%.

5. The bank shall compare the NSFR derivative liabilities prescribed in Clause 2 of this Article with the NSFR derivative assets prescribed in Clause 4 of this Article; where there is a difference, the bank shall proceed as follows:

a) Where NSFR derivative liabilities exceed NSFR derivative assets, the positive difference between NSFR derivative liabilities and NSFR derivative assets shall be included in the ASF and subject to an ASF factor of 0%, specifically:

ASF = 0% × Max ((NSFR derivative liabilities − NSFR derivative assets), 0);

b) Where NSFR derivative liabilities are less than NSFR derivative assets, the positive difference between NSFR derivative assets and NSFR derivative liabilities shall be included in the RSF and subject to an RSF factor of 100%, specifically:

RSF = 100% × Max ((NSFR derivative assets − NSFR derivative liabilities), 0).

1. Interdependent assets and liabilities of a bank are pairs of assets and liabilities satisfying all of the following conditions:

a) Conditions for agreements relating to the assets and liabilities:

 (i) The funding raised is for use with a specific asset and cannot be used to fund other assets;

 (ii) The liability is not required to be performed until the asset is recovered;

 (iii) The maturity, term and principal payment amounts of the assets and liabilities must fully match each other;

 (iv) They are not derivative product transactions;

b) Conditions for the transaction counterparty of each pair of assets and liabilities:

 (i) The transaction counterparties of each pair of assets and liabilities shall not be the same entity;

 (ii) The counterparty shall not have the right to change the content agreed with the bank and must fully and timely perform the agreed content;

c) The bank only acts as a pass-through, transferring the entire funding received to finance the corresponding assets and does not bear risks in the course of providing products and services.

2. For each pair of interdependent assets and liabilities, the bank shall:

a) Assess full satisfaction of the conditions prescribed in Clause 1 of this Article for each pair of interdependent assets and liabilities;

b) Apply RSF and ASF factors of 0% to each pair of interdependent assets and liabilities satisfying all conditions in Clause 1 of this Article.

3. On the basis of inspection, examination and supervision results, where a pair of assets and liabilities is assessed not to satisfy the conditions prescribed in Clause 1 of this Article or does not adequately reflect the actual level of risk, the State Bank shall have the right to require the bank to apply the following measures:

a) Cease applying RSF and ASF factors of 0% as prescribed in Clause 2 of this Article to one or more pairs of interdependent assets and liabilities of the bank;

b) Apply separate RSF and ASF factors to each corresponding asset and liability in accordance with the provisions of this Circular for the pair of assets and liabilities prescribed in Point a of this Clause.

1. Banks shall disclose information on liquidity ratios as prescribed in Appendix IV enclosed with this Circular at least once every six months by the following deadlines:

a) The deadline for semi-annual disclosure shall be no later than 75 days from the end of the first six months of the financial year;

b) The deadline for annual disclosure shall be no later than 120 days from the end of the financial year.

2. Banks shall develop internal regulations on the information disclosure process ensuring at least the following:

a) Specific prescriptions on the form of disclosure (such as publications or posting on the electronic information portal) on liquidity ratios ensuring openness, transparency and convenient access for relevant individuals and organizations;

b) Disclosed information must be consistent with the figures on the Financial Statements at the same date;

c) Procedures and methods for collecting information (qualitative and quantitative) on liquidity ratios as prescribed in this Circular;

d) Procedures for verifying the accuracy, completeness and currency of the disclosed information as prescribed in this Circular;

dd) Full prescriptions on the responsibilities, powers and coordination of relevant individuals and departments in carrying out information disclosure;

e) Procedures must be disseminated to relevant individuals and departments;

g) Procedures must be reviewed at least annually.

3. Banks shall submit the internal regulations prescribed in Clause 2 of this Article to the State Bank (the Department of Credit Institution Management and Supervision or the Regional Branch depending on the entity subject to microprudential supervision) within 10 days from the date of issuance, amendment, supplementation or replacement.

4. For banks that have applied the provisions of this Section and have not yet complied with the minimum threshold of 100% for both the LCR and NSFR, banks may only disclose information in accordance with the principle of accurately reflecting the bank's actual implementation of this Circular and shall not declare full compliance with all provisions of this Section.

1. Banks may purchase, hold and invest in Government bonds and government-guaranteed bonds in a ratio of up to 30% of the average monthly total liabilities of the immediately preceding month.

2. Government bonds are debt instruments of the Government, including treasury bills and national construction bonds.

3. Government-guaranteed bonds include corporate bonds issued with Government guarantee and bonds issued by policy banks with Government guarantee.

4. The balance of purchase, holding and investment in Government bonds and government-guaranteed bonds for the purpose of determining the maximum ratio prescribed in Clause 1 of this Article is the purchase price of Government bonds and government-guaranteed bonds owned by the bank and entrusted purchases, holding and investment in Government bonds and government-guaranteed bonds as prescribed by law, excluding the following:

a) Purchases and investment in Government bonds and government-guaranteed bonds using entrusted funds as prescribed by law for which the bank does not bear risks;

b) Government bonds and government-guaranteed bonds received by the bank as collateral, or discounted or rediscounted.

5. A newly established bank (excluding credit institutions reorganized as prescribed in the Law on Credit Institutions) that has been operating for less than two (02) years from the date of commencement of operations and whose total liabilities are less than charter capital/assigned capital may purchase, hold and invest in Government bonds and government-guaranteed bonds in a ratio of up to 30% of charter capital/assigned capital.

1. Commercial banks that purchase or hold shares (including shares held through entrustments to other organizations and individuals and by shareholders of the commercial bank) of other credit institutions shall ensure compliance with the conditions prescribed in Clause 2 and the limits prescribed in Clause 3 of this Article.

2. At the time of purchase or holding of shares of another credit institution, the commercial bank shall fully satisfy the following conditions:

a) The actual value of charter capital is not lower than the registered charter capital;

b) The limits and prudential ratios prescribed by law are complied with;

c) The non-performing loan (NPL) ratio is below 3%;

d) There are procedures for approval, appraisal, and risk assessment for the purchase and holding of shares of other credit institutions;

dd) Each purchase or holding of shares of another credit institution is approved by the Board of Directors or Board of Members;

e) The bank has not been subject to administrative sanctions for violations in banking activities for one year prior to the date of purchase or holding of shares;

g) The chairperson and other members of the Board of Directors, the chairperson and other members of the Board of Members, the General Director (Director), the head and other members of the Board of Controllers, major shareholders of the commercial bank, subsidiaries of the commercial bank and related persons of such entities shall not purchase or hold voting shares of the said credit institution;

h) The chairperson and other members of the Board of Directors, the chairperson and other members of the Board of Members, the General Director (Director), the head and other members of the Board of Controllers, major shareholders of the commercial bank, subsidiaries of the commercial bank and related persons of such entities shall not entrust any individual or organization to purchase or hold voting shares of the said credit institution.

3. Limits:

a) A commercial bank may only purchase or hold shares of a maximum of two (02) other credit institutions, except where the other credit institution is a subsidiary of the commercial bank;

b) A commercial bank may only purchase or hold shares of another credit institution representing less than 5% of the voting shares of that other credit institution;

c) A commercial bank shall not nominate members of the Board of Directors of a credit institution whose shares are held by the commercial bank, except where the credit institution is a subsidiary of the commercial bank or the commercial bank is a supporting credit institution designated to participate in the governance, control, management and support of the organization and operations of the credit institution under special control;

d) The purchase or holding of shares of another credit institution exceeding the limits prescribed in Points a and b of this Clause or where the commercial bank does not fully satisfy the conditions prescribed in Clause 2 of this Article may be carried out in the following cases:

 (i) The purchase or holding of shares pursuant to a plan for restructuring of a credit institution under special control as prescribed in the Law on Credit Institutions;

 (ii) As designated by the State Bank as prescribed by law;

dd) Where a commercial bank sells shares of another credit institution under a deferred payment arrangement, the commercial bank may only transfer ownership of the shares corresponding to the amount paid by the buyer.

1. Banks that exceed the restrictions and limits on credit extension as prescribed in Articles 135 and 136 of the Law on Credit Institutions due to the inclusion of the amounts of debt sold, amounts of debt purchased and outstanding balances of outright purchases without recourse of documents under letters of credit prescribed in Points dd, e and g of Clause 3 of Article 9 of this Circular that arose before the effective date of this Circular in the total credit extensions shall not be deemed to be in violation of the restrictions and limits on credit extension.

2. Banks may only extend new credit (including investment in corporate bonds, purchase and sale of debt and outright purchase without recourse of documents under letters of credit) to clients and related persons who are entities not satisfying the restrictions and limits on credit extension prescribed in Clause 1 of this Article until they comply with the provisions of Articles 135 and 136 of the Law on Credit Institutions and Clause 3 of Article 9 of this Circular.

Submit to the Governor of the State Bank for decision on the application of the LEV as prescribed in Clause 1 of Article 8 of this Circular.

1. Carry out inspection, examination and handling of violations of compliance with the provisions of this Circular by banks in accordance with the law and the assignment of the Governor of the State Bank.

2. On the basis of inspection and examination results, decide on the application of the provisions of Clause 5 of Article 1, Point d of Clause 2 of Article 7, Clause 1 of Article 15 and Clause 3 of Article 26 of this Circular and the provisions of Point c of Clause 5 of Section I; Clause 2 of Section II, Clause 2 of Section III and Clause 2 of Section IV of Part A of Appendix I enclosed with this Circular.

1. Supervise and inspect compliance with the provisions of this Circular by banks in accordance with the law and the assignment of the Governor of the State Bank.

2. Receive written registrations as prescribed in Article 13 of this Circular from banks subject to microprudential supervision as prescribed by law and as assigned by the Governor of the State Bank.

3. On the basis of inspection and supervision results, decide on the application of the provisions of Clause 5 of Article 1, Point d of Clause 2 of Article 7, Clause 1 of Article 15 and Clause 3 of Article 26 of this Circular and the provisions of Point c of Clause 5 of Section I; Clause 2 of Section II, Clause 2 of Section III and Clause 2 of Section IV of Part A of Appendix I enclosed with this Circular for banks subject to microprudential supervision.

4. Develop reporting templates for the limits and prudential ratios in banking operations in accordance with the State Bank's statistical reporting regime.

The Department of Forecasting and Statistics shall submit to the Governor of the State Bank for guidance on the statistical reporting regime for the limits and prudential ratios as prescribed in this Circular.

1. Carry out inspection, examination and supervision and handle violations of compliance with the provisions of this Circular in accordance with the law by foreign bank branches subject to microprudential supervision as assigned by the Governor of the State Bank.

2. Receive written registrations as prescribed in Article 13 of this Circular from foreign bank branches subject to microprudential supervision.

3. On the basis of inspection, examination and supervision results, decide on the application of the provisions of Clause 5 of Article 1, Point d of Clause 2 of Article 7, Clause 1 of Article 15 and Clause 3 of Article 26 of this Circular and the provisions of Point c of Clause 5 of Section I; Clause 2 of Section II, Clause 2 of Section III and Clause 2 of Section IV of Part A of Appendix I enclosed with this Circular for foreign bank branches subject to microprudential supervision.

1. Banks that have not yet ensured compliance with the limits and restrictions prescribed in this Circular shall immediately organize and implement remedial measures to comply with the provisions of this Circular.

2. The Board of Directors and Board of Members of commercial banks, the General Director (Director) of foreign bank branches and commercial banks and foreign bank branches shall be responsible for the truthfulness, accuracy and completeness of reports submitted as prescribed in Article 13 of this Circular.

3. The General Director (Director) of foreign bank branches and foreign bank branches shall proactively implement measures to improve liquidity (including measures to control the scale of credit extension) upon receiving adverse information regarding the parent bank's operations; report to the State Bank on such adverse information and the self-remediation measures prescribed in Point b(i) of Clause 2 of Article 17 of this Circular (if any) on the next working day from the date of receipt of such adverse information.

1. This Circular comes into force as of December 1, 2026, except as prescribed in Clause 2 of this Article.

2. Commercial banks currently implementing the provisions of Clause 3 of Article 23 of Circular No. 41/2016/TT-NHNN shall comply with the capital adequacy ratio, liquidity reserve ratio, 30-day solvency ratio, maximum ratio of short-term capital for provision of medium-term and long-term loans and loan-to-deposit ratio as prescribed in Circular No. 22/2019/TT-NHNN and shall not be required to comply with the provisions of Sections 4 and 5 of this Circular until the conclusion of their implementation of the provisions of Clause 3 of Article 23 of Circular No. 41/2016/TT-NHNN.

3. Certain provisions of Circular No. 22/2019/TT-NHNN are amended as follows:

1. Banks, including:

a) Cooperative banks;

b) Commercial banks currently implementing the provisions of Clause 3 of Article 23 of Circular No. 41/2016/TT-NHNN on capital adequacy ratios for banks and foreign bank branches, as amended by Circular No. 22/2019/TT-NHNN and Circular No. 22/2023/TT-NHNN, shall only apply the capital adequacy ratio, liquidity reserve ratio, 30-day solvency ratio, maximum ratio of short-term capital for provision of medium-term and long-term loans and loan-to-deposit ratio as prescribed in this Circular until the conclusion of their implementation of the provisions of Clause 3 of Article 23 of Circular No. 41/2016/TT-NHNN.

2. Organizations and individuals related to the limits and prudential ratios in the operations of banks and foreign bank branches.";

"6. Banks and foreign bank branches shall submit reports to the receiving units prescribed in Clause 5 of this Article as follows:

a) Banks and foreign bank branches shall submit reports to the State Bank (the Department of Credit Institution Management and Supervision), except as prescribed in Point b of this Clause;

b) Foreign bank branches subject to microprudential supervision by the Regional Branch shall submit reports to that Regional Branch.";

"3. The Regional Branch may apply the remedial measures prescribed in Clause 2 of this Article to foreign bank branches subject to microprudential supervision, including:

a) The measures prescribed in Points a, b and c of Clause 2 of this Article;

b) The measures prescribed in Point d(i) of Clause 2 of this Article within the competence delegated by the Governor of the State Bank;

c) For remedial measures prescribed in Clause 2 of this Article that are beyond the competence of the Regional Branch, the Regional Branch shall submit them to the Governor of the State Bank for decision.";

"5. After implementing the self-remediation measures prescribed in Clause 2 of this Article, if the bank or foreign bank branch continues to experience difficulties with payment capacity, the bank or foreign bank branch shall immediately report to the State Bank (the Department of Credit Institution Management and Supervision or the Regional Branch depending on the entity subject to microprudential supervision).";

"2. Within a maximum of 30 days from the effective date of this Circular, banks and foreign bank branches shall submit in person or by post the remedial plan prescribed in Clauses 2 and 3 of Article 21 of this Circular to the State Bank (the Department of Credit Institution Management and Supervision or the Regional Branch depending on the entity subject to microprudential supervision) in accordance with Points a and b of Clause 6 of Article 4 of this Circular.

Where the State Bank or the Regional Branch requires amendment, supplementation or adjustment of the contents of the remedial plan, banks and foreign bank branches shall organize and implement in accordance with such requirements.";

Heads of units under the State Bank of Vietnam, banks and foreign bank branches shall implement this Circular./.".

Heads of units under the State Bank of Vietnam, commercial banks and foreign bank branches shall implement this Circular./.

 

                                                                                                                                   (This translation is for reference only)