Vietnam Deposit Rates Stay High Despite SBV Support: VCB, Banks

Overview

Despite the State Bank of Vietnam’s (SBV) recent liquidity-support measures, deposit and lending rates across Vietnamese banks remain under upward pressure. Credit growth continues to outpace deposit growth, and funding structures skew short-term, keeping rates elevated. This affects major listed banks including Vietcombank (VCB), BIDV (BID), VietinBank (CTG), MB (MBB), HDBank (HDB), and Sacombank (STB).

Key Facts

• In July 2026, average deposit rates rose across all tenors except under one month, according to SBV data.
• Average lending rates for state-owned and joint-stock commercial banks increased to 8.3–10.5% per annum for new and existing loans.
• None of the 19 domestic commercial banks that disclosed July 2026 lending rates reduced their average lending rates compared to June.
• Vietcombank’s loan-to-deposit ratio (LDR) under regulatory calculation is below the 85% cap, but on a conventional basis it stands at approximately 102%.
• The Ministry of Finance proposed removing the cap on treasury deposit ratios for banks from idle budget sources.
• The SBV adjusted regulations to increase liquidity, including raising the amount of treasury deposits counted in LDR and easing the short-term funding ratio for medium- and long-term loans (SFL).
• The USD/VND exchange rate stabilized around 26,200, with foreign capital flows showing signs of improvement.

What Happened

The SBV has implemented a series of measures to ease banking system liquidity, including adjusting LDR calculations, easing the short-term funding ratio, and proposing to remove the treasury deposit cap. These actions have reduced interbank rates and eased short-term liquidity tensions. However, deposit and lending rates have not shown a clear downward trend, as credit demand remains strong and deposit growth lags.

At a recent investor meeting, Vietcombank’s leadership noted that system liquidity still faces stress, particularly at month-end, as credit growth continues to outpace deposit growth. They characterized the SBV’s policy adjustments as technical support measures that cannot substitute for sustainable customer deposit mobilization. The bank’s conventional LDR of about 102% reflects the reality that credit is growing faster than deposits, putting upward pressure on funding costs.

Market Context

Vietcombank (HOSE: VCB) closed at 60 VND on August 24, 2026, up 1.35% on the day. Other affected banks also showed mixed performance: BID (HOSE) rose 1.22% to 37 VND, CTG (HOSE) fell 0.47% to 32 VND, and MBB (HOSE) gained 0.48% to 21 VND. The banking sector remains sensitive to interest rate movements, as persistent rate pressure could compress net interest margins. The SBV’s liquidity support has not yet translated into lower deposit costs, which may weigh on bank profitability in the coming quarters.

Strategic Significance

For long-term investors, the persistence of high deposit and lending rates indicates that Vietnamese banks are operating in a tight funding environment. The structural mismatch between credit growth and deposit mobilization, combined with a short-term funding skew, suggests that banks with stronger deposit franchises, such as Vietcombank, may be better positioned to manage funding costs. However, the overall sector faces margin pressure unless deposit growth accelerates or the SBV takes more decisive action to lower rates. The proposed regulatory changes, such as the treasury deposit cap removal, could provide additional liquidity but may not be sufficient to reverse the rate trend.

What to Watch

• SBV policy actions: Any further adjustments to LDR, SFL, or other liquidity tools that could ease funding pressure.
• Deposit rate trends: Monthly average deposit rates across tenors, particularly whether they start to decline.
• Credit growth data: Monthly credit growth versus deposit growth to see if the gap narrows.
• Bank earnings reports: Q3 2026 results for VCB, BID, CTG, MBB, HDB, STB to assess net interest margin impact.
• Foreign capital flows: Continued improvement could support liquidity and ease rate pressure.