State Bank of Vietnam Requires Banks to Cut Savings Rates by at Least 0.5%

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• Governor: 'Rate cuts must target the right recipients, prioritising production and business'

  Governor Phạm Đức Ấn asked banks to cut lending rates selectively, prioritising production and business loans and considering existing debt, not just new loans. Average lending rates rose 0.2 percentage points to 10.7% in August, about 3 points higher than a year earlier, while legacy floating-rate personal loans reached 12-14%. Banks must cut deposit rates by at least 0.5% for terms of 6 months and above, and on 19/10 BVBank, LPBank and Vietbank published new rates below 7% a year. BIDV offers loans from 6% a year, Vietcombank pledged to cut lending rates by at least 2 percentage points by year-end, and Sacombank launched a 40,000 billion VND package. The State Bank will closely monitor rates and stands ready to support banks' liquidity, as rate hikes by the Fed, ECB and BOJ in September pressure emerging economies.

  VnExpress·19/10, 08:09▲ VNINDEXinterest ratesState Bank of Vietnambanks
• Banks begin sharp cuts to deposit rates across many terms on the afternoon of October 19

  The State Bank of Vietnam (SBV) asked credit institutions to cut deposit rates by at least 0.5% a year for terms of 6 months or longer, and lending rates by 1.5-2% a year for production, business and priority sectors, while avoiding competitive rate hikes. LPBank cut deposit rates across all terms from 1 to 36 months, with its online 12-month rate now at 6.7% a year and 48-60 month rates at 5.2%. VietBank lowered online rates by 0.5 percentage points for terms of 6 to 36 months, bringing its 6-8 month rate to 5.4% a year. The central bank warned that banks failing to cut rates may face a review of their remaining credit quotas this year, lower targets next year, or higher safety ratios.

  CafeF·19/10, 08:45▲ VNINDEX▲ ACB▲ BID▲ CTGinterest ratesState Bank of Vietnamsavings accounts
• State Bank Governor calls for interest rate cuts to be considered for both existing outstanding loans and new loans

  On 19/10/2026, Governor Phạm Đức Ấn chaired a meeting with deputy governors, the Association of Banks and leaders of 46 commercial banks on banking operations. He said that as of last weekend, deposit mobilization had grown 11.22% and credit 11.44%, and the VND gap between loans and deposits had narrowed to below 1.5 quadrillion dong from nearly 2 quadrillion. Dispatch No. 9608/NHNN-CSTT requires credit institutions to cut listed deposit rates by at least 0.5% per year for terms of six months or more, and to reduce lending rates by 1.5–2% per year for production, business and priority sectors. Cuts must match each bank's financial capacity, be tied to cost reductions and profit sharing, avoid across-the-board moves, and apply to both existing and new loans.

  CafeF·19/10, 04:01▲ VNINDEXinterest ratesState Bank of Vietnambanks
• This morning (19/10): State Bank Governor Phạm Đức Ấn meets with chairpersons and CEOs of commercial banks

  On the morning of 19 October, Governor Phạm Đức Ấn chaired a meeting with commercial banks at the State Bank of Vietnam, requiring chairpersons and CEOs to attend in person rather than send deputies. As of the end of last week, deposit mobilization rose 11.22% and credit grew 11.44%, indicating faster capital demand. The governor said the stable exchange rate supports confidence in the dong and continued foreign investment, even as several major economies raise interest rates to fight inflation. Banks were told to cut deposit rates for terms of 6 months and above by at least 0.5% a year and to reduce lending rates for production and priority sectors by 1.5–2%, while avoiding unhealthy rate competition.

  CafeF·19/10, 02:27State Bank of Vietnaminterest ratesbanks
• State Bank of Vietnam: Banks Ignoring Interest Rate Directives May Face Credit Quota Cuts and Higher Safety Ratios

  The State Bank of Vietnam (NHNN) has issued Document No. 9608/NHNN-CSTT dated 18/10/2026, directing credit institutions to strictly follow government and central bank interest rate directives and avoid unfair competition. Institutions that fail to comply before the end of 2026 may have their remaining 2026 credit growth targets reviewed, receive a lower credit growth target for 2027, or be required to meet higher safety ratios than prescribed. Immediately, credit institutions must cut listed deposit rates for terms of 6 months or longer by at least 0.5% per year and reduce lending rates by 1.5-2% per year, focusing on production, business and priority sectors. They are also asked to cut costs, share profits and avoid aggressive deposit rate hikes.

  CafeF·18/10, 17:01▼ VNINDEXState Bank of Vietnaminterest ratescredit
• Vietnam central bank urges rate cuts by commercial banks - Xinhua

  The State Bank of Vietnam has directed commercial banks to cut deposit rates by at least 0.5 percentage points for terms of six months or longer, and to lower lending rates for production, business and priority sectors by 1.5 to 2 percentage points, according to a Dan Tri report. The central bank also asked lenders to direct credit toward key economic projects and priority sectors such as science and technology, digital transformation, green development and education, while tightening lending in high-risk areas, particularly real estate. Banks were further instructed to mobilize resources, cut operating costs, share profits and take coordinated steps to bring down overall interest rates.

  english.news.cn·18/10, 15:45▲ VNINDEXinterest ratesState Bank of Vietnambanks

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