Flash Note – Monetary Policy: Synchronized rate cuts from commercial banks signal further monetary accommodation

According to local press reports, the State Bank of Vietnam (SBV) and commercial banking executives met on April 9, 2026, to outline near-term monetary policy directives:

• Commercial banks plan to lower deposit rates by 50 to 100 basis points for maturities exceeding six months. The primary objective is to drive down real lending rates, supporting corporate and retail balance sheets amid an uncertain global macroeconomic backdrop.
• The SBV will maintain active open market operations (OMO) and deploy a flexible mix of monetary tools (FX swaps, refinancing facilities) to ensure systemic liquidity on the interbank market.
• The SBV will maintain system-wide credit growth targets, prioritizing allocations for manufacturing and commercial operations. The SBV retains the discretion to dynamically adjust bank-specific credit quotas based on real-time conditions.
• Authorities emphasized boosting the equity market to attract foreign institutional investment (FII) and foreign direct investment (FDI).
• The SBV is evaluating easing measures for the loan-to-deposit ratio (LDR) framework in Circular 22/2019. Key proposals include allowing State Treasury deposits to be factored into the LDR calculation and excluding short-term interbank borrowing from the LDR denominator.