Ho Chi Minh City, 21 Oct 2025
Continuing the series of support measures extended to banks that take over weaker banks under special control, the reserve requirement ratio has emerged as another key incentive introduced by the State Bank of Vietnam (SBV) to facilitate the restructuring of such banks. This measure, set out in Circular No. 23/2025/TT-NHNN dated 12 August 2025 and effective from early October, amends Circular No. 30/2019/TT-NHNN on reserve requirements (“Circular 23”).
Policy Shift in Reserve Requirement Ratio
Previously, reductions in the reserve requirement ratio applied only to banks providing support to those under special control (“Supporting Banks”). Circular 23 marks a significant policy shift by extending this preferential treatment to banks that take over those under special control (“Acquiring Banks”). Specifically, these banks are entitled to a 50% reduction in the applicable reserve ratio compared to ordinary commercial banks, as part of their approved restructuring plans.
Based on the current reserve requirement framework set by the SBV, the applicable ratios for Supporting Banks and Acquiring Banks are as follows:
| Deposit in VND | Deposit in USD | |||
| < 12 months | ≥ 12 months | < 12 months | ≥ 12 months | |
| Commercial Bank | 3% | 1% | 8% | 6% |
| Supporting Bank & Acquiring Bank | 1.5% | 0.5% | 4% | 3% |
Implications and Outlook
Effective from 1 October 2025, the four Acquiring Banks participating in the SBV’s restructuring programme, including Vietcombank, MB, VPBank, and HDBank, will be the primary beneficiaries of this new policy. The 50% reduction in the reserve ratio is expected to release an estimated VND 17.2 – 51.7 trillion (approximately USD 662 million – 1.99 billion) into the economy, depending on each bank’s deposit structure as of mid-2025. Specifically:
- Vietcombank, with the largest deposit base in the sector exceeding VND 1.58 quadrillion (around USD 61 billion), is expected to benefit the most. The lower reserve requirement could free up VND 7.9 – 23.8 trillion (around USD 304 – 916 million), which can be channeled into lending, government bond investments, or capital adequacy enhancement.
- MB could release VND 3.9 – 11.7 trillion (around USD 150 – 451 million), strengthening liquidity for SME lending and providing a buffer for OceanBank’s ongoing balance sheet consolidation.
- VPBank may unlock VND 3 – 9 trillion (around USD 115 – 347 million), easing funding pressure during its acquisition of GPBank and supporting retail and SME lending growth.
- HDBank is likely to free up VND 2.4 – 7.2 trillion (around USD 92 – 277 million), which can be directed to high-yield sectors such as retail and aviation, while facilitating the restructuring of DongA Bank.
Collectively, this liquidity injection will strengthen Acquiring Banks’ capital buffers, expand lending capacity, and reduce funding costs, enabling them to grow credit without increasing deposit mobilization. This, in turn, supports both the restructuring of weak bankers and broader economic growth. The anticipated boost in profitability and liquidity is also expected to improve investor sentiment in the banking sector.
For the wider economy, the policy is expected to improve system-wide liquidity, ease interest rate pressures, and channel more capital into productive sectors, thereby providing new momentum for economic growth and reinforcing public confidence in the banking system.
That said, the relaxation of reserve requirements also entails certain risks. By releasing funds that would otherwise be held by the SBV, the policy could expand the money supply and heightened inflationary pressures. Accordingly, it will be essential for regulators to closely monitor monetary conditions and the progress of bank restructuring to ensure that liquidity remains well-managed and long-term financial stability is maintained.
Conclusion
The reduction in the reserve requirement ratio represents a pragmatic and timely policy move by the SBV to ease the financial strain on Acquiring Banks undertaking mandatory transfers. It complements earlier reform measures, including the asset seizure rights and the 49% foreign ownership cap, thereby rounding out a comprehensive toolkit to facilitate the restructuring of weaker banks.
