People's credit funds' total deposits must not exceed 20 times equity

Pursuant to Clause 1, Article 11 of Circular No. 40/2026/TT-NHNN of the State Bank of Vietnam, people's credit funds must maintain a ratio of total deposits to equity not exceeding 20 times.

Pursuant to Clause 2, Article 11 of Circular No. 40/2026/TT-NHNN, the ratio of total deposits to equity shall be determined by dividing total deposits by equity.

Accordingly, when determining compliance with this limit, people's credit funds must take into account both total deposits received and the value of equity at the time of calculating the ratio.


 

Specifically, pursuant to Clause 3, Article 11 of Circular No. 40/2026/TT-NHNN, total deposits shall be determined on the accounting balance sheet at the time of calculating the ratio of total deposits to equity. Total deposits include demand deposits, term deposits, and savings deposits of members, organizations, and individuals in Vietnamese Dong.

Regarding equity, Clause 4, Article 11 of Circular No. 40/2026/TT-NHNN provides that equity shall also be determined on the accounting balance sheet at the time of calculating the ratio of total deposits to equity.

Accordingly, from November 1, 2026, people's credit funds' total deposits must not exceed 20 times equity.