SCB Cuts Deposit Rates to 0.01-1.18% as SBV Pushes Banks to Lower Funding Costs
This Aveluro analysis covers SCB on UPCOM in the Banks sector. The classified event type is macro policy, with negative sentiment and a deterministic market-impact score of 8.0/10. Aveluro classifies this story as a negative catalyst and risk signal for the affected stock. Source coverage came from CafeF - Tài chính ngân hàng, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Ngân hàng TMCP Sài Gòn (SCB) has repriced its deposit schedule to 0.01-1.18% per year across tenors, a level far below both state-owned and private-sector peers. The cut lands as Vietnamese banks broadly reduce funding costs under a State Bank of Vietnam (SBV) directive, and it puts the deposit strategies of listed lenders such as VPBank (VPB) and Sacombank (STB) under sharper comparison.
Key Facts
- SCB demand deposits pay 0.01% per year; 1-5 month tenors are listed at 0.08% per year.
- Tenors of 6-11 months carry 0.48% per year, 15-18 months 0.58%, and 24-36 months 0.68% per year.
- Online savings pays 0.5% per year for 31 days to 5 months; 24-36 month online rates fell to 0.68% from 3.9% previously.
- At the 12-month tenor, SCB’s rates sit roughly 5% below state-owned banks and up to 7% below private banks, per the article.
- The SBV requires credit institutions to cut average deposit rates by at least 0.5% per year on new transactions for tenors of 6 months or more in the final months of 2026, versus the 11-20 October reporting window.
- The SBV also asked banks to reduce lending rates by 1.5-2% per year for manufacturing, business and priority sectors.
- VPBank cut 6-11 month rates on deposits under VND 10 billion to 6.6% per year and 12-13 month rates to 6.7%; Sacombank reduced 24-36 month rates to 7.3% from 7.8%.
What Happened
SCB published a new deposit rate schedule covering both counter and online channels, with reductions across every tenor. The steepest adjustment appeared in the long end: online 24-36 month rates dropped to 0.68% per year from 3.9%. Over-the-counter deposits with interest paid at maturity are listed roughly 0.02 to 0.5 percentage points above the online schedule. The article attributes the disclosure to the bank’s published rate table.
The broader round of cuts follows SBV instructions to credit institutions and commercial banks. The regulator asked lenders to lower average deposit rates by at least 0.5% per year on new transactions for tenors of six months or more in the closing months of 2026, measured against each bank’s own rates in the 11-20 October reporting period. The SBV also warned against rate competition it characterised as unfair and destabilising to monetary and financial security, and separately pressed banks to cut lending rates by 1.5-2% per year for production, business and priority sectors.
Market Context
SCB trades on UPCOM. The article does not provide SCB share price data, and the price-context block covers only STB and VPB. Sacombank (STB, HOSE) closed at VND 68,000 on 28 October 2026, while VPBank (VPB, HOSE) closed at VND 23,500. The sector-wide deposit repricing is the dominant near-term variable for Vietnamese bank margins: lower funding costs support net interest margin if lending yields hold, but the SBV’s simultaneous push for cheaper credit compresses the spread from both sides.
Strategic Significance
SCB’s ultra-low deposit schedule is best read as a funding strategy rather than a competitive bid for household savings. By pricing deposits near zero, the bank effectively discourages new term inflows and relies on cheaper channels, which matters for a lender still rebuilding its franchise. For listed peers such as VPB and STB, the relevant question is whether the SBV’s 0.5% minimum cut becomes a sector-wide floor or a ceiling: banks that cut faster protect margins but risk deposit outflow to higher-paying competitors, while laggards face regulatory pressure. The directive’s explicit ban on rate competition narrows the scope for deposit wars, shifting competition toward lending spreads, service fees and digital acquisition.
What to Watch
- Monthly SBV deposit rate disclosures and each bank’s reported average funding cost versus the 11-20 October 2026 baseline.
- Q4 2026 and full-year 2026 earnings releases from VPB and STB, particularly net interest margin and deposit growth.
- SBV credit growth allocations and any further guidance on the 0.5% deposit cut for 2027.
- Deposit mix data showing whether SCB loses household term deposits to peers.
- Lending rate filings for priority sectors to gauge whether the 1.5-2% cut is fully passed through.