It is drafting under a circular by the State Bank of Vietnam, Governor Le Minh Hung said.
Banks will be limited to using 50 per cent of their short-term funds for medium- to long-term purposes, including mortgages, until the end of this year. The ratio will then be cut to 45 per cent in 2018 and 40 per cent in 2019, according to the draft circular released by the central bank.
Long and medium-term credit accounts for 53-55 per cent of all loans offered by commercial banks while long and medium-term funds make up only 13-15 per cent of total mobilized capital. The imbalance in using short-term funds for medium-to long-term purposes could pose huge risks to banks, experts have said.

Property loans have reached VND400 trillion (US$176.12 million), accounting for 6.5 per cent of total outstanding loans.

The central bank has also raised the risk ratio of property loans at commercial banks to 200 per cent from 150 per cent.
According to Hung, property loans have reached VND400 trillion (US$176.12 million), accounting for 6.5 per cent of all outstanding loans in the country.
At the National Assembly’s ongoing session, some NA deputies have expressed concern that banks could offer more property loans in a bid to reach credit growth targets for the year. Governor Hung spoke against such remarks, saying the target was set by the government and banks are not under pressure to reach it at all costs.
Credit growth stood at 10.6 per cent in the first nine months of this year, leaving the annual growth target of 18-20 per cent seemingly out of reach.
However, at a recent meeting with Victoria Kwakwa, Vice President for the East Asia and Pacific Region at the World Bank, Governor Hung said that the SBV has come under no pressure to loosen the monetary policy to help the country achieve the economic growth target of 6.7 per cent this year.
SBV will work towards curbing inflation at less than 4 per cent this year, Hung said, adding the central bank had asked credit institutions to control credit growth and ensure credit quality.
"This year, the quality of loans has been strengthened and tightly controlled in the risky industries, especially real estate. The Government and the SBV are consistent with the opinion that the economic growth must ensure the goal of macroeconomic stability," Hung said.