Over 20 Vietnamese Banks Cut Deposit Rates 0.1-0.5% After SBV Meeting

Overview

Deputy Governor Phạm Thanh Hà of the State Bank of Vietnam announced at an April 14 press conference that over 20 commercial banks have implemented deposit rate cuts following a meeting with the Governor on April 9, 2026. This coordinated action, involving major banks like Agribank, Vietcombank, and BIDV, aims to lower lending costs and support economic growth, with the SBV targeting approximately 15% credit expansion for the year.

Key Facts

• Over 20 commercial banks cut deposit rates after the April 9 meeting chaired by the SBV Governor.
• Approximately 26 banks have adjusted listed deposit rates downward by 0.1-0.5% per annum, primarily for tenors of 6 months or longer.
• The SBV maintains its policy rates to provide low-cost funding for credit institutions.
• System credit outstanding reached over VND 19.18 quadrillion as of March 31, 2026, up 3.18% from end-2025.
• Vietnam’s Q1 2026 GDP grew 7.83% year-on-year, with CPI inflation at 3.51%.
• The SBV targets 2026 inflation control around 4.5% and credit growth of approximately 15%.
• Credit programs for key sectors like forestry and fisheries have been expanded to VND 185,000 billion.

What Happened

At a press conference on April 14, 2026, in Hà Nội to announce Q1 banking results, Deputy Governor Phạm Thanh Hà of the State Bank of Vietnam stated that more than 20 commercial banks have reduced interest rates to support businesses and individuals. This follows a meeting on April 9 chaired by the SBV Governor where commercial banks agreed on the principle of rate reductions. According to the Deputy Governor, the move creates a foundation for further cuts in lending rates to aid economic growth.

Phạm Chí Quang, Director of the Monetary Policy Department, provided additional details, noting that approximately 26 commercial banks have adjusted their listed deposit rates downward by 0.1-0.5% per year, mainly for tenors of six months and above. The SBV had earlier issued a document on March 30 requiring credit institutions to stabilize market interest rates. The central bank continues to maintain its policy rates to facilitate access to low-cost capital for credit institutions.

Market Context

ACB (Asia Commercial Joint Stock Bank) trades on the HOSE and closed at VND 24 on April 14, 2026, up 1.05% on volume of 14.3 million shares. The broader banking sector showed mixed but generally stable performance, with BID flat at VND 40 and CTG up 0.14% to VND 35. The announcement comes amid positive Q1 economic data, with GDP growth of 7.83% and controlled inflation, providing a supportive backdrop for monetary policy easing. The SBV’s coordinated rate-cut directive aims to translate into lower lending rates, potentially boosting credit demand and sector profitability.

Strategic Significance

This coordinated deposit rate reduction represents a strategic policy push to lower funding costs across the banking system, enabling banks to reduce lending rates without significantly compressing net interest margins. For long-term investors, this supports the SBV’s pro-growth stance for 2026, targeting 15% credit expansion to fuel economic activity. The move aligns with broader efforts to support key sectors through expanded credit programs, potentially driving loan growth for banks like ACB that participate in these initiatives. Success hinges on banks’ ability to manage margin pressure while increasing credit volume.

What to Watch

• Q2 2026 earnings reports from major banks (ACB, BID, CTG, VCB) for evidence of margin trends and credit growth.
• Monthly credit growth data from the SBV to track progress toward the 15% annual target.
• Further SBV policy meetings or directives that may adjust interest rate or credit growth guidance.
• Individual bank announcements detailing specific lending rate reductions for retail and corporate customers.
• Inflation data for April and May 2026 to assess if CPI remains within the SBV’s 4.5% target, influencing future policy space.