LPBank Cuts Deposit Rates Up to 60bps After SBV Order

Overview

LPBank, listed on HOSE as LPB, cut deposit rates across all tenors from 1 to 36 months on the afternoon of 19 October, hours after the State Bank of Vietnam (SBV) instructed credit institutions to lower quoted deposit rates by at least 0.5 percentage points per year for terms of six months or more. The move lowers LPBank’s funding cost base and marks the first concrete repricing among listed banks following the SBV directive.

Key Facts

• SBV directed banks on the morning of 19 October to cut deposit rates by a minimum of 0.5 percentage points per year for tenors of 6 months and above, and warned against rate competition.
• LPBank reduced online deposit rates by 0.05-0.1 percentage points for 1-5 month tenors; the 1-month rate now stands at 4.3% per year and 3-5 month tenors at 4.55%.
• Online rates for 6-12 month tenors fell 0.5-0.6 percentage points: 6 months to 6.5%, 7-11 months to 6.4%, and 12 months to 6.7% per year.
• LPBank’s highest online rate is now 6.7% per year for 24-25 month tenors, down 0.5 percentage points; 36-month terms fell to 5.6% and 48-60 month terms to 5.2%.
• Counter deposits were also cut: 6-month terms to 5.9%, 12-18 month terms to 6.1%, and 24-25 month terms to 6.3% per year, with priority customers receiving 0.15 percentage points above standard rates.
• VietBank simultaneously cut online deposit rates by 0.5 percentage points for 6-36 month tenors, leaving 1-5 month rates unchanged at 4.6% per year.
• LPB closed at VND 38,450 on 19 October 2026.

What Happened

The State Bank of Vietnam convened a meeting with credit institutions on the morning of 19 October and instructed them to adjust down quoted deposit rates by at least 0.5 percentage points per year for terms of six months or more, while explicitly prohibiting a race to raise mobilisation rates or other unfair competitive practices. The directive was reported by Vietnamese financial media the same day.

By the afternoon, LPBank (Ngân hàng TMCP Lộc Phát Việt Nam) published a revised rate schedule cutting deposit rates across every tenor from 1 to 36 months for both online and counter channels. The deepest reductions landed on the 6-18 month segment, where online rates fell 0.5-0.6 percentage points. VietBank (Ngân hàng TMCP Việt Nam Thương Tín) followed with a uniform 0.5 percentage point cut on 6-36 month online tenors. The article attributes the changes to the banks’ updated rate schedules and the SBV meeting, without citing a formal written directive.

Market Context

LPB trades on HOSE and closed at VND 38,450 on 19 October 2026. The rate cut arrives with Vietnamese banks under regulatory pressure to lower funding costs, a policy stance that typically compresses net interest margins in the near term but supports credit demand and system liquidity. For LPBank, a mid-sized joint-stock bank that has grown its retail deposit base aggressively, the directive limits its ability to compete on rate and shifts competition toward service and digital channels.

Strategic Significance

The binding constraint here is regulatory rather than commercial: the SBV has effectively capped the price of term funding, which narrows the spread LPBank can offer savers and forces the bank to defend its deposit franchise through distribution rather than yield. For long-term holders, the key question is whether cheaper funding translates into lower cost of funds fast enough to offset the repricing of existing term deposits, and whether loan yields hold. Banks that relied most heavily on high-rate term deposits to fund credit growth, as LPBank has, face the sharpest margin adjustment.

What to Watch

• LPBank’s Q3 2026 results and any disclosed cost-of-funds guidance following the repricing.
• Whether other listed banks announce matching cuts in the days after 19 October, confirming a system-wide move.
• SBV follow-up guidance or written directives specifying the scope and duration of the 0.5 percentage point floor.
• October credit growth and deposit growth data from the SBV, to gauge whether lower rates stem deposit inflows.
• Any foreign-ownership or block-trade filings on LPB around the policy shift.