On 7/1/2026, the State Treasury (ST), an agency under the Ministry of Finance (MoF), announced it is drafting a Government Resolution. This resolution aims to adjust the limit for deploying temporary idle state budget funds as term deposits at commercial banks.

The proposal suggests raising the maximum ceiling limit from 50% to 60%, effective until 28/2/2026. After this date, existing deposits can be maintained until maturity, provided the balance by 31/3/2026 does not exceed the currently regulated limit.

Temporary idle state budget funds are undisbursed funds earmarked for specific expenditures. The Ministry of Finance notes that while adjusting this limit will intensify pressure on the agency to meet state budget payment demands, such as social security spending and investment capital disbursement, it offers significant benefits. This measure will support the State Bank of Vietnam (SBV) in stabilizing system liquidity during the year-end and Tet Lunar New Year 2026 period. This, in turn, could ease pressure on market interest rates, stabilize macroeconomic conditions, and help achieve growth targets.

Cash transaction at a bank. *Photo: Giang Huy*

This proposal comes amidst growing liquidity pressure in the banking system. Recently, credit growth has outpaced capital mobilization. According to a State Bank of Vietnam report, total system credit by 24/12/2025 had increased by 17,87% from the start of the year, reaching 18,4 quadrillion VND. In contrast, capital mobilization grew by only about 14%. This imbalance places significant pressure on system liquidity, particularly as Tet approaches, driven by seasonal demand for capital.

In response, the State Bank of Vietnam has implemented market stabilization measures, and the Ministry of Finance has deposited temporary idle state budget funds at banks, nearing the current maximum 50% limit.

Nevertheless, recent periods have seen tight money market liquidity, leading to elevated interbank interest rates. For example, short-term interbank rates (under one month) sometimes reached 6,5-7,5% annually, a notable increase from below 5% in the first half of the year.

"This adjustment to the maximum limit is necessary and urgent," stated the Ministry of Finance, assuring proactive management of deposit balances to ensure liquidity safety and adherence to regulated limits.

Additionally, the Ministry of Finance and the State Bank of Vietnam will coordinate fiscal and monetary policies to promote growth and maintain macroeconomic stability.

Phuong Dung