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Consolidated Circular on Monetary Policy Tools Supporting Credit Institutions' Agricultural and Rural Lending (Circular 14/2018/TT-NHNN, as amended by Circular 74/2025/TT-NHNN)

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Based on:14/2018/TT-NHNN (sửa đổi bởi 74/2025/TT-NHNN; hợp nhất tại Văn bản hợp nhất 21/VBHN-NHNN) - Government Official Gazette

This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.

The State Bank of Vietnam (SBV) has issued Consolidated Document No. 21/VBHN-NHNN, merging Circular 14/2018/TT-NHNN with the amendments in Circular 74/2025/TT-NHNN (effective from 16 February 2026). The circular guides monetary policy tools used to support credit institutions and foreign bank branches lending to agriculture and rural development. It applies directly to credit institutions, not to businesses or household businesses. Two main support tools are provided: (1) refinancing under existing rules for credit institutions, and (2) a preferential (lower) compulsory reserve ratio for credit institutions whose average agricultural-rural credit ratio is 70 percent or higher (reserve ratio may drop to as low as 1/20 of the standard rate) or between 40 and under 70 percent (as low as 1/5 of the standard rate). Eligibility is assessed twice a year over two six-month periods, using a formula based on outstanding loan balances as of 30 September and 31 December (period 1) or 31 March and 30 June (period 2). Credit institutions must submit a written request before 15 January (period 1) or 15 July (period 2), via the National Public Service Portal or in writing; the SBV responds with approval or rejection before 30 January or 30 July respectively. Compared to the 2018 original, the 2025-2026 amendment mainly updates the legal basis (citing the 2024 Law on Credit Institutions and newer decrees) and adds cross-verification steps: the Department of Credit Institution Supervision, the SBV Inspectorate, and Regional SBV Branches must supply supervisory findings on the accuracy of the agricultural credit data that institutions self-report, and handle violations if misreporting is found. This is primarily an internal policy tool governing the relationship between the SBV and the banking system; the effect on farm and rural businesses or household businesses is indirect, arising from banks having more low-cost funding capacity to expand lending in this sector.

Overview

Consolidated Document No. 21/VBHN-NHNN (State Bank of Vietnam, authenticated 19 January 2026) merges Circular No. 14/2018/TT-NHNN dated 29 May 2018 (effective 13 July 2018) with Circular No. 74/2025/TT-NHNN dated 31 December 2025 (effective 16 February 2026), which amends several articles. The circular guides monetary policy tools used to support credit institutions and foreign bank branches lending to agriculture and rural development, under the credit policy set out in Decree 55/2015/ND-CP (as amended by Decree 116/2018/ND-CP and Decree 156/2025/ND-CP).

Scope and Applicable Entities

  • Article 1: Guides monetary policy tool measures to support credit institutions and foreign bank branches lending for agricultural and rural development.
  • Article 2: Applies to credit institutions and foreign bank branches that lend under the Government's agricultural and rural credit policy. Businesses and household businesses are not directly subject to this circular.

Support Measures for Credit Institutions (Article 3)

  1. Refinancing: support under existing refinancing rules for credit institutions.
  2. Preferential compulsory reserve ratio: a lower-than-standard reserve ratio applies to VND deposits, based on a credit institution's average ratio of agricultural-rural outstanding credit to total outstanding credit:
    • Ratio of 70 percent or higher: the preferential ratio requested by the institution, but not lower than 1/20 of the standard reserve ratio.
    • Ratio between 40 percent and under 70 percent: not lower than 1/5 of the standard reserve ratio.
    • The preferential ratio applies for two six-month periods each year (period 1: February-July; period 2: August through the end of January of the following year), calculated from average agricultural-rural credit and total credit balances as of 30 September and 31 December of the prior year (period 1), or 31 March and 30 June of the current year (period 2).
    • Institutions with a ratio of 40 percent or higher that do not wish to apply for the preferential rate are not bound by this circular's reserve requirement provisions.
  3. Other measures: as decided by the SBV Governor.

Application and Approval Procedure (Article 4)

  • Credit institutions submit a written request for the preferential reserve ratio: for period 1, using the form in Appendix I, before 15 January; for period 2, using Appendix II, before 15 July.
  • Submission may be made online via the National Public Service Portal (using a digital/electronic signature) or by post/in person at the SBV's One-Stop-Shop unit.
  • The SBV reviews and issues a written notice of approval or rejection (with reasons): before 30 January (period 1) or 30 July (period 2).

Rights and Responsibilities of Credit Institutions (Article 5)

  • May request SBV refinancing when in need of capital for agricultural-rural lending.
  • Submit the preferential reserve ratio request to the Department of Credit for Economic Sectors.
  • Are responsible for the accuracy, completeness, and legality of the reported agricultural-rural credit and total credit figures, and must explain the data in writing if the SBV requests.
  • Must comply with legal requirements and SBV guidance on agricultural-rural credit policy.

Internal SBV Oversight Responsibilities (Article 6)

  • Department of Credit for Economic Sectors: the focal point that receives and appraises applications, submits them to the Governor for approval, and notifies the credit institution and related units (the Operations Department, Regional SBV Branches).
  • Department of Credit Institution Supervision and SBV Inspectorate: within 3 days of a request, must supply any supervisory or inspection findings bearing on the accuracy of an applicant's agricultural-rural credit data, and handle violations within their authority if misreporting is found.
  • Regional SBV Branch where the credit institution is headquartered: supplies similar supervisory information for institutions under its micro-prudential oversight, and coordinates implementation of the circular.

Effective Dates (Articles 7-8)

  • The original Circular 14/2018/TT-NHNN took effect 13 July 2018, replacing Circular 20/2010/TT-NHNN, Official Letter 854/NHNN-TD, and Decision 582/2003/QD-NHNN.
  • The amendments in Circular 74/2025/TT-NHNN take effect 16 February 2026.
  • Appendices I and II (application forms for the period-1 and period-2 preferential reserve ratio) were replaced by Circular 74/2025/TT-NHNN, effective 16 February 2026.

Note

This is a monetary policy instrument governing the relationship between the SBV and the banking system; it does not directly create obligations or rights for businesses or household businesses. The effect on the agricultural and rural sector is indirect: credit institutions with a high share of agricultural-rural lending get reserve-requirement relief, freeing up capital they can use to expand lending to borrowers in that sector.

14/2018/TT-NHNN (sửa đổi bởi 74/2025/TT-NHNN; hợp nhất tại Văn bản hợp nhất 21/VBHN-NHNN)Effective: February 16, 2026