The government recently requested the Ministry of Finance and the State Bank of Vietnam to continue studying an increase in the proportion of State Treasury time deposits at commercial banks. This measure aims to bolster system liquidity, thereby supporting the economic growth target of 10% or more in 2026, as outlined in the newly issued Resolution 168.

Temporarily idle state funds are prioritized for advances to central and local budgets. Any unused portion will be used for repurchasing government bonds or for time deposits at commercial banks.

Under Resolution 168, the government has tasked the Ministry of Finance with actively determining the limit for using temporarily idle state funds for time deposits in commercial banks. If necessary, this limit may exceed 50% of the temporarily idle funds.

Current regulations stipulate that the total limit for using temporarily idle state funds for time deposits at commercial banks and for repurchasing government bonds cannot exceed 50% of the temporarily idle funds within a quarter.

Within this, the limit for repurchasing government bonds is a maximum of 10%, while deposits can only be placed with highly safe banks for terms not exceeding three months.

Money transaction at a commercial bank. Photo: Giang Huy

As of the end of March, State Treasury deposits within the banking system totaled approximately 626,700 billion VND. Over 99% of this amount was held at the 4 state-owned banks: Vietcombank, BIDV, VietinBank, and Agribank.

Earlier this year, the Ministry of Finance also proposed temporarily raising this limit from 50% to 60% during late 2025 and the Tet Lunar New Year 2026 period. This proposal aimed to support the banking system's liquidity.

An increase in State Treasury deposits would provide banks with additional capital. This would enable them to meet liquidity needs, facilitate lending, and alleviate some pressure on fundraising efforts.

Quynh Trang