Commercial banks pledge to cut lending rates following central bank meeting

On 9 April 2026, the State Bank of Vietnam (SBV) held a meeting in Hanoi to implement banking sector tasks under the chairmanship of SBV Governor Pham Duc An. The meeting brought together Deputy Governors, leaders of SBV units, and representatives from the boards and management of commercial banks.

At the meeting, Pham Chi Quang, Director of the Monetary Policy Department, said that in the first three months of the year, SBV actively and flexibly conducted monetary policy to stabilize the macroeconomy, control inflation, and support growth. He noted that SBV managed open market operations flexibly, including daily purchases of securities with appropriate volumes and varied maturities to support liquidity. SBV also managed the exchange rate in line with market conditions and pursued credit growth of about 15%.

SBV required credit institutions to tightly control capital flows into high-risk sectors, especially real estate, and to prioritize funding for production and business activities. In addition, SBV continued to keep policy rates unchanged to facilitate access to low-cost funds for the economy.

Deposit and lending rate competition prompts action

Pham Chi Quang said that amid complex international developments and geopolitical tensions in the Middle East that pushed oil prices higher, global inflation faced upward pressure. At the same time, domestic demand for capital to meet growth targets increased, creating challenges for monetary policy management and banking operations.

He added that there have been signs that some commercial banks have competed for deposits, contributing to increases in both deposit and lending rate levels. Against this backdrop, SBV convened the meeting to disseminate government and Prime Minister directives.

Banks pledge to cut rates

At the meeting, commercial banks broadly agreed to implement the policy of reducing interest rates to support businesses and people. They also pledged to reduce both deposit and lending rates immediately after the meeting.

SBV’s next steps

Looking ahead, SBV said it would continue to closely monitor rate movements in the market. It will require banks to transparently publish lending rates and be prepared to provide liquidity support for NHTMs when needed.

SBV also stated it will strengthen inspection and supervision and strictly handle violations related to mobilizing capital and providing credit to ensure proper implementation of interest-rate management directives.