OCB Leads Vietnamese Banks With 11.38% Lending Rate Ahead of SBV Rate Cut

Overview

Average lending rates at Vietnamese banks exceeded 11% in September, with OCB (HOSE) leading at 11.38% for individual customers, according to a VnExpress survey of 30 lenders. The State Bank of Vietnam (SBV) responded on 18 October by ordering banks to cut loan rates by 1.5-2 percentage points and deposit rates by at least 0.5 points, a directive that pressures net interest margins (NIM) across the banking sector.

Key Facts

• OCB’s average lending rate for individual customers reached 11.38% per year in September, the highest among 30 surveyed banks.
• Techcombank (TCB) followed at 11.24%, TPBank (TPB) at 11.03%, and BVBank at 11%.
• LPBank, Bac A Bank, and VietABank reported average lending rates of 10.2-10.8% across all customers.
• VIB, ACB, PVcomBank, KienlongBank, MSB, and Saigonbank ranged between 9% and 9.8%.
• BIDV, a state-owned lender, averaged 7.73%, while Agribank stood at 8.42%.
• The SBV on 18 October ordered banks to cut lending rates by 1.5-2 percentage points per year for production, business, and priority sectors, and to reduce deposit rates for terms of six months or more by at least 0.5 points.
• The industry-wide average lending rate was 10.7% in August, up 1.7 points from the end of last year, according to the most recent SBV data.

What Happened

The VnExpress survey, based on monthly disclosures from 30 banks, showed the average lending rate continued to climb in September. OCB topped the list for individual customers at 11.38% per year, followed by Techcombank at 11.24%, TPBank at 11.03%, and BVBank at 11%. Vikki Bank also exceeded 11% in data updated early last week. Rates vary by borrower due to risk profile, financial capacity, and collateral; for corporates, credit ratings and industry also affect pricing.

On 18 October, the SBV instructed lenders to reduce loan rates by 1.5-2 percentage points per year for manufacturing, business, and priority sectors, and to cut deposit rates for terms of six months or more by at least 0.5 points. At a meeting with credit institution leaders early this week, SBV Governor Phạm Đức Ấn said the cuts should not be applied uniformly but targeted at the right customer groups to support production and priority sectors. He said the policy should cover both existing loans and new lending.

Market Context

OCB (HOSE) closed at VND 10,250 on 21 October 2026. Among the affected tickers with price context, LPB closed at VND 39,700, TCB at VND 34,400, and TPB at VND 12,650. The directive comes as Vietnamese banks face pressure to lower lending rates to support economic growth, even as deposit costs remain elevated. The industry-wide average lending rate rose to 10.7% in August from roughly 9% at the end of last year, reflecting a lagged pass-through of higher deposit rates. The spread between lending and deposit rates is commonly 1-3 percentage points.

Strategic Significance

For long-term investors, the SBV’s directive signals a policy trade-off: lower lending rates support corporate borrowers and economic activity but compress bank NIMs, particularly for lenders like OCB that have relied on higher-yielding retail lending. Banks with stronger deposit franchises and lower funding costs, such as state-owned BIDV, may be better positioned to absorb the cuts. The directive’s emphasis on targeted rather than across-the-board reductions suggests the SBV is trying to balance credit growth with financial stability, but the effectiveness will depend on banks’ willingness to sacrifice margin.

What to Watch

• Q3 2026 earnings releases from OCB, TCB, TPB, and LPB, expected in late October, for early signs of NIM compression.
• SBV monthly data on average lending and deposit rates for September and October.
• Deposit rate movements at major banks following the 0.5-point cut order.
• Credit growth figures for Q4 2026, to gauge whether lower rates stimulate borrowing.
• Any further SBV directives or adjustments to priority-sector lending caps.