News about credit

On October 19, Nam A Bank cut its interest rates in line with directives from the Government and the State Bank of Vietnam: listed deposit rates for terms of 6 months and longer fall by 0.5% per year, and lending rates drop by 1.5–2% per year. The bank will prioritize credit for agriculture, rural areas, exports, SMEs, supporting industries and high-tech enterprises. CEO Trần Khải Hoàn said the call to lower rate levels is an important message on market discipline and stressed that sustainable growth must rest on asset quality, risk management and liquidity safety. He added that Nam A Bank does not use interest rates to attract customers, relying instead on its corporate culture.

SK hynix has launched a 2 trillion won ($1.5 billion) financing program with major commercial banks and a state-run trade insurer to help domestic chip suppliers secure cheaper funding. Under the deal, SK hynix and the participating banks will contribute 100 billion won, while the Korea Trade Insurance Corporation will provide guarantees worth up to 20 times that amount, supporting as much as 2 trillion won in financing. The initiative targets small and midsized suppliers of semiconductor materials, parts and equipment, who face high borrowing costs. The company is also building the Trinity Fab, an 870 billion won testing facility at the Yongin cluster where suppliers can validate products under real manufacturing conditions.

Following directives from the Government and the State Bank of Vietnam, Agribank, Vietcombank, BIDV, ACB, LPBank and VietBank have simultaneously launched lending rate cut programmes, typically by 1.5-2 percentage points for priority sectors. Agribank will cut lending rates by up to 2% a year from October 19, with about VND 2,000 billion allocated, and continues a VND 70,000 billion preferential credit package. BIDV's preferential programme, starting October 15, 2026, offers loans from 6% a year on short-term VND lending across its system. Vietcombank has committed to cutting rates by at least 2% by year-end, while Sacombank will allocate VND 40,000 billion in preferential capital with a 2% reduction. VietBank is rolling out a VND 3,000 billion package with cuts of at least 1.5% a year until June 30, 2027.

LPBank is rolling out a system-wide program to cut deposit and lending rates from October 19 to December 31, 2026, in line with directives from the Government and the State Bank of Vietnam. The bank will lower listed deposit rates by 0.5–0.6% per year for tenors of 6 months or more and by 0.05–0.1% per year for shorter tenors. It will also cut lending rates by 1.6–2% per year on new disbursements for short-term production and business loans, targeting individuals, household businesses, micro-enterprises and agriculture and rural areas. The move follows a meeting chaired by Deputy Prime Minister Nguyễn Văn Thắng on October 16, 2026, and the SBV's October 18, 2026 directive asking credit institutions to cut lending rates and reduce operating costs.

Vietnam's top leaders are pressing banks to cut lending rates by 1.5-2 percentage points for priority sectors and to reduce deposit rates by at least 0.5 percentage point for maturities of six months or longer. Higher funding costs have pushed some deposit rates above 9% and floating mortgage rates as high as 12-19%, while outstanding credit reached about 20.75 quadrillion dong (US$800 billion) at end-September, up 11.6% year to date. Maybank Investment Bank Vietnam says lending rates have likely peaked and could ease toward a healthier 7-10%, while HSC cautions that preferential programmes should not be read as the start of a broader easing cycle. SSI Research estimates announced megaprojects could absorb at least 30% of net new bank credit between 2026 and 2030, even as the economy expanded more than 9% in the first nine months of 2026.

According to PGS.TS. Trần Hoàng Ngân, the State Bank's call to cut listed deposit rates by at least 0.5% per year for tenors of 6 months or more, and lending rates by 1.5–2% per year, is a boost for businesses at year-end. Outstanding credit to the whole economy exceeded 20.72 million billion VND as of October 14, 2026, up 11.44% from end-2025. On October 18, 2026, the SBV issued Official Dispatch No. 9608/NHNN-CSTT directing credit institutions to cut rates and costs, avoid deposit rate hikes and not lower credit standards. Some banks moved quickly: BIDV offered short-term VND loans from 6% per year from October 15, 2026, while Vietcombank committed to cut lending rates by at least 2% per year until year-end.

On 19 October 2026, State Bank of Vietnam (SBV) Governor Pham Duc An chaired a meeting with top leaders of commercial banks on implementing operational measures. The SBV said that in the first 9 months of 2026 it ran monetary policy proactively and flexibly; as of 14 October 2026, outstanding credit to the economy reached VND 20,721,583 billion, up 11.44% from the end of last year and 16.73% year-on-year, with a credit growth orientation of 15%. Amid rising international tensions, including the Middle East conflict that pushed up oil prices, several central banks such as the Fed, ECB and BOJ raised rates, strengthening the US dollar. Commercial banks agreed to cut listed deposit rates by at least 0.5% per year for terms of 6 months or more, avoid bidding up deposit rates, and reduce lending rates by 1.5–2% per year, focusing on production, business and priority sectors.

SACOMBANK is rolling out a VND 40,000 billion preferential credit program in line with Government and State Bank of Vietnam directives, cutting lending rates by 2% per year to preferential rates from 8.5% per year. The program targets domestic enterprises in key industries, import-export companies and foreign-invested enterprises (FDI). Earlier, from 13 August 2026, the bank launched a program for import-export customers offering rate cuts of up to 2%, narrowing its profit margin from about 2.79% to 0.79%. From September 2026, it also supports business households facing cash-flow difficulties and home-loan customers, with rate cuts of up to 1.5–2% per year. The bank is also expanding cashless payment and digital cash-flow management services.

As of October 14, 2026, outstanding credit to the economy reached 20,721,583 billion dong, up 11.44% from the end of last year and 16.73% year-on-year. On the morning of October 19, State Bank of Vietnam (SBV) Governor Phạm Đức Ấn met with chairs and CEOs of commercial banks, and the banks agreed to cut interest rates. Specifically, listed deposit rates for terms of 6 months or more will fall by at least 0.5%/year, while lending rates will drop by 1.5–2%/year, focusing on production, business and priority sectors. The backdrop includes Middle East conflict driving up oil prices, several major central banks raising rates and a stronger US dollar, all of which pressure Vietnam's monetary policy. The SBV also asks banks to channel credit into production and business while tightly controlling lending to risky sectors, including real estate.

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.

At the State Bank of Vietnam's meeting with top commercial bank executives on the morning of 19/10, ACB General Director Từ Tiến Phát said the bank would immediately implement the government's and central bank's directives. ACB will cut rates on its deposit rate table from today, effective the next day, and launch a special lending program reducing loan rates by 1.5% to 2% for businesses. He said its earlier program, a 1% rate cut, had disbursed about VND 5,000 billion so far. He described the central bank's warning that non-compliant banks could face reduced credit growth targets as a strong message that reinforces market discipline. He also expressed confidence that the State Bank will keep monetary policy flexible to support the system.

Vietbank is launching a VND 3,000 billion preferential credit package with interest rates at least 1.5% per year lower than usual, effective from October 19, 2026 until June 30, 2027 or until the quota runs out, and cutting deposit rates by 0.5% per year for terms of 6 months or longer. The move is in line with government and State Bank directives to lower lending rates, after Deputy Prime Minister Nguyễn Văn Thắng asked for cuts of 1.5–2% for production, business and priority sectors. A separate VND 600 billion quota for agriculture, forestry and fisheries carries rates at least 1% per year below the average short-term lending rate, fixed for the loan term. For home buyers, the An Cư Thịnh Vượng package finances up to 100% of capital needs with terms of up to 30 years, while the bank also waives or reduces some service fees.

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.

Agribank was honored at the WSBI-ESBG SDG Awards 2026 in the 'Inclusive Banking and Social Impact' category for its 'Sustainable business with women-led enterprises' initiative, its second consecutive year in this category. The initiative offers a short-term preferential credit program of VND 5,000 billion, with interest rates up to 0.7% per year below the standard lending floor, to help women-led businesses access stable capital at reasonable cost. Agribank was also recognized in this category in 2025 for its Agribank Plus platform. The bank's representatives also attended the WSBI Asian Regional Group Meeting 2026, discussing digital transformation, artificial intelligence and cybersecurity with peers.

In August, Nvidia brought together Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to set up financing platforms that could mobilize over $500 billion for AI infrastructure. The article argues that access to cheap, large-scale capital will increasingly decide who can compete in AI, giving the United States an edge through its deep capital markets. The five largest US hyperscalers are on track to spend $730 billion on capital expenditure in 2026, with up to a third expected to be financed by debt. Nvidia's model aims to turn compute into an asset that pension funds and insurers can own, though the article flags risks such as short-lived GPUs and unpredictable AI demand. It also contrasts Europe's large household savings, which are not yet well channeled into startups, with China, where as much as 80% of newly built computing capacity reportedly sits unused.

Net placements by Nigerian banks at the Central Bank of Nigeria’s (CBN) Standing Deposit Facility (SDF) rose above 6 trillion naira for three consecutive days after the CBN repaid 2.41 trillion naira in maturing Open Market Operations (OMO) securities on October 13. Net SDF placements increased from about 3.86 trillion naira on October 13 to 6.08 trillion naira on October 16, a rise of 2.22 trillion naira or 57.65%. Treasury bill sales absorbed only 269.06 billion naira, and about 74% of bids were unallotted. The article suggests banks are holding surplus liquidity rather than deploying it, but notes that high SDF placements alone do not prove deliberate credit restriction, since borrower demand, risk, capital requirements and interest rates also shape lending.

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.

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.

The article argues the global economy is at a historic turning point, as the financialization cycle ends amid mounting trouble in private equity and private credit while the US begins to re-industrialize. It frames the conflict as Wall Street and global financial centers versus Main Street and industry, noting the US carries $40 trillion in government debt. The author attributes rising US long-term rates to three factors: the unwinding of the yen carry trade, inflation now driven by a supply shock rather than money supply (M1 rose 80% from 2020 to 2024), and dollars draining out of the global system. The author expects US rates to fall while rates spike in Europe, and describes a negative credit cycle comparable to 2008, though the US government is acting early. The text is cut off before its chart section.

From 19/10/2026, Agribank will cut lending rates by up to 2.0% per year versus its usual rates, focusing on priority sectors and production and business customers. It is also continuing a 70,000 billion VND preferential credit program running from August 2026 to 2028 for small and medium enterprises, priority sectors and new growth drivers, with rates 1–2% per year below its average same-term lending rate. Agribank expects to set aside about 2,000 billion VND to share capital costs. The move follows a State Bank of Vietnam directive dated 18/10/2026 (No. 9608/NHNN-CSTT), which asks credit institutions to cut listed deposit rates by at least 0.5% per year for terms of six months or more and reduce lending rates by 1.5–2% per year for production, business and priority sectors.

JPMorgan Chase CEO Jamie Dimon warned in a Bloomberg interview that rising borrowing costs could leave many companies unprepared when they refinance or borrow, as higher credit spreads raise their costs. He said tech firms borrowing heavily in 2026 to build AI data center infrastructure are competing with the U.S. Treasury for funds, pushing rates higher. JPMorgan strategists reported that deeply distressed loans rose 62.5%, from $40 billion in 2025 to $65 billion in the third quarter of 2026, the highest since March 2020, though this does not mean all those companies will default. Higher rates also reach households, with 30-year fixed mortgages averaging 7.40% as of October 8, 2026, according to Freddie Mac.

Bain & Co projects holiday retail sales in 2026 to approach $1 trillion, with the typical American household expected to spend about $900 on gifts, decorations and food. Mastercard forecasts the strongest holiday retail growth in four years, yet 77% of Americans plan to change their shopping habits due to rising prices, and 35% feel less financially stable than a year ago. Many consumers are still paying off last year's holiday debt, as more than one-third took on holiday credit card debt in 2025, averaging about $1,223 per person according to Capwolf.com. The article advises setting a holiday budget by category, tracking spending, and focusing on low-cost ways to give, such as visiting seniors, writing handwritten letters or supporting a family in need.

Ashok Chandra, MD and CEO of Punjab National Bank (PNB), told BusinessLine that credit growth this quarter could add up to 2 percentage points to overall growth, with retail, agri and MSME lending expected to rise by at least 1–2% more. The bank used its entire FCNR(B) deposit pool, about $2.7 billion, to repay high-cost bulk deposits and certificates of deposit, lifting domestic NIM by 10 basis points and global NIM by 8 basis points in one quarter. He expects overall credit growth of 14–15% this quarter, with MSME growth of 21–22% and agri growth of 18–19%. Loan rates are repriced the next working day after any change, with about 7 basis points of benefit expected from the recent repo hike, while deposit rates are expected to stay elevated for now. PNB plans to raise around $1 billion via MTN and has board approval for about ₹10,000 crore of infrastructure bonds, with timing dependent on market conditions.

The State Bank of Vietnam has instructed banks to cut savings deposit rates by at least 0.5% for terms of 6 months or longer, and lower lending rates for production, business and priority sectors by 1.5–2 percentage points, or face tighter credit growth quotas. In a document dated October 18, the regulator said listed top savings rates had climbed to 7.6–7.8% a year since late April, while preferential rates at many banks reach 8.5–9.5% a year. Non-compliant banks could see their remaining credit limits for the year reviewed, receive lower targets next year, or face higher safety ratios. Banks are also told to prioritize lending to production and innovation, tightly control high-risk credit, report asset quality honestly without hiding bad debt, and balance deposit mobilization with capital use.