Hanoi (VNS/VNA) - The State Treasury deposited more than 400 trillion VND (15.2 billion USD) at State-owned commercial banks by the end of last year, underscoring the scale of public funds flowing through the banking system and their role in shoring up liquidity, according to banks’ audited financial statements.
Consolidated fourth-quarter 2025 statements from Vietcombank, VietinBank and BIDV show the Treasury’s total deposit balance at the three lenders rose by nearly 11% compared with the end of 2024. The sum represents a substantial and comparatively low-cost source of funding for the State-owned banking group.
At VietinBank, the Treasury held nearly 134.63 trillion VND in non-term deposits at the end of the fourth quarter, down about 7% from year-end 2024. Despite the decline, it remained one of the bank’s largest institutional funding sources.
BIDV reported Treasury deposits of 135.86 trillion VND, including more than 1.24 trillion VND in non-term funds. That compares with 145.26 trillion VND at the end of 2024, a fall of roughly 6.5%.
Vietcombank held the largest balance. As of the end of the fourth quarter of 2025, Treasury deposits there exceeded 136 trillion VND, about 1.8 times higher than at the beginning of the year. However, compared with the end of the third quarter of 2025, the balance fell by around 21.25 trillion VND, reflecting cyclical disbursement patterns.
In practice, Treasury deposits tend to be seasonal and closely tied to the pace of public investment spending. When disbursement slows, funds accumulate in the banking system. When spending accelerates, balances can be drawn down quickly.
For State-owned lenders, Treasury deposits provide an important liquidity buffer, easing reliance on funding from individuals and businesses during tighter monetary conditions. They are also relatively inexpensive compared with many other funding channels.
Data from the State Bank of Vietnam show that, as of December 2025, average Vietnamese dong interest rates at domestic commercial banks were 0.1-0.2% per year for non-term deposits and those with maturities of less than one month. Rates for terms from one month to under six months ranged from 3.8-4.5% per year. Deposits with maturities of six to 12 months carried rates of 4.7-5.9%, those from over 12 months to 24 months were 5-6.4%, and terms of more than 24 months stood at about 6.8% per year.
Such sizeable balances can bolster key liquidity indicators, including liquidity reserve ratios and short-term solvency metrics. With a stable inflow of public funds, banks face less pressure to raise deposit rates to compete for retail money, helping keep funding costs in check and creating room to lower lending rates to support businesses.
However, treasury funds are inherently linked to the timing of State budget revenues and expenditures, as well as public investment plans. Balances can therefore fluctuate sharply over short periods. Banks cannot treat this as a permanently stable, long-term funding source and must continue to manage liquidity prudently, align maturities carefully and deploy capital conservatively./.
Credit quota reform, tighter capital rules may widen gap among banks
Yuanta Vietnam Securities estimates that to achieve GDP growth above 10%, credit growth would need to exceed 16%. This suggests bank credit is no longer expected to be the main growth driver, with greater reliance on fiscal policy, public investment and capital markets.
