Vietnamese Banks Cut Rates After SBV Meeting, AGB Leads Deposit Forecast

Overview

Multiple Vietnamese commercial banks, including Agribank (AGB), Nam A Bank, and TPBank, have announced reductions in both deposit and lending interest rates following a meeting with the State Bank of Vietnam (SBV). The CEO of TPBank forecasts deposit rates will stabilize around 7% per annum, setting a foundation for banks to lower lending rates to support economic growth.

Key Facts

• Agribank (AGB) reduced deposit rates by 0.5 percentage points for terms of 24 months and above for individual customers, effective April 13, 2026, with the highest deposit rate now 6% per annum for 24-month terms.
• Agribank also cut lending rates by 0.5 percentage points, citing aims to reduce capital costs for customers amid economic recovery needs.
• Nam A Bank reduced deposit rates by up to 0.5 percentage points for terms from 6 months upward and cut lending rates for individual customers by up to 3 percentage points, with its highest deposit rate at 6.3% per annum for 12-36 month terms.
• TPBank reduced deposit rates by 0.5 to 1 percentage points for terms over 6 months and by 0.2 percentage points for short terms, with its CEO forecasting deposit rate stabilization around 7% per annum.
• The SBV stated it will maintain basic interest rates and not inject additional money into the open market, aiming to reduce volatility and gradually stabilize rates.
• Other banks reportedly cutting rates include Sacombank, LPBank, Vietcombank, BVBank, ABBank, VPBank, and SeABank.
• An analyst from Mirae Asset Securities noted the coordinated cuts aim to stabilize the general rate environment rather than further loosening.

What Happened

On April 12, 2026, multiple commercial banks announced interest rate reductions for both deposits and loans, as reported by Báo Người Lao Động. This followed a meeting with the State Bank of Vietnam, chaired by Governor Phạm Đức Ấn, to implement banking sector tasks. Agribank led with a 0.5 percentage point cut in deposit rates for terms of 24 months and above, effective the next day, and a similar reduction in lending rates. The bank’s representative stated this dual reduction aims to lower capital costs for customers to support economic recovery and growth.

Nam A Bank and TPBank also announced cuts, with Nam A reducing deposit rates by up to 0.5 points and lending rates by up to 3 points, and TPBank cutting deposit rates by 0.5 to 1 points for longer terms. TPBank’s CEO, Nguyễn Hưng, forecasted deposit rates would stabilize around 7% per annum, providing a reasonable basis for banks to lower lending rates. The SBV reinforced this by signaling it would keep basic rates unchanged and avoid additional open market operations, aiming for more stable and sustainable rate cooling.

Market Context

This news impacts a broad range of banking stocks listed on HOSE, HNX, and UPCOM, including AGB, NAB, STB, SCB, LPB, VCB, BVB, ABB, VPB, and SSB. The banking sector has been sensitive to interest rate movements, with recent volatility in rates prompting these coordinated cuts. For example, STB closed at VND 67 on April 14, 2026, down 0.89% with volume of 3.47 million shares, reflecting ongoing market adjustments. The SBV’s stance and bank actions aim to reduce uncertainty, which could influence investor sentiment toward net interest margins and loan growth in the coming quarters.

Strategic Significance

The rate cuts signal a strategic shift toward supporting economic recovery through lower borrowing costs, coordinated under SBV guidance. For long-term investors, this suggests a focus on stabilizing the financial system rather than aggressive monetary easing, potentially leading to more predictable earnings for banks as rate volatility decreases. The forecast of 7% deposit rate stability provides a clearer framework for assessing future profitability, particularly for banks with strong deposit franchises like Agribank, which may benefit from reduced funding cost pressures.

What to Watch

• Q2 2026 earnings reports from major banks like AGB, VCB, and VPB to assess the impact of rate cuts on net interest margins.
• Further SBV policy announcements or meeting minutes regarding interest rate management and liquidity measures.
• Monthly credit growth data from the SBV to gauge whether lower lending rates stimulate loan demand.
• Updates from other listed banks like STB and SCB on their specific rate adjustment plans and timelines.
• Foreign investor activity in banking stocks, as tracked by ownership filings, to see if rate stabilization attracts capital inflows.