Vietnam’s central bank has just announced a major shift in monetary policy. The new rules will change the interest that everyday savers earn and the cost of borrowing for households and small businesses.

The State Bank of Vietnam ordered banks to cut deposit and lending interest rates and warned that non‑compliant lenders could face reduced credit‑growth targets. This directive applies to the whole banking system and all sales channels. It follows the governor’s instructions from an October 19 meeting.

Banks must lower average deposit rates on new six‑month‑plus transactions by at least 0.5 percentage points per year in the final months of 2026, compared with the October 11‑20 reporting period. The central bank will monitor these rates through its statistical reporting system.

Several major banks have already responded. Sacombank, HDBank, Vietcombank and Agribank announced cuts to deposit rates and launched preferential credit packages that reduce lending rates by 1‑2 percentage points. The packages are aimed at individuals, SMEs and priority sectors, while excluding real estate, securities and other speculative loans.

For depositors, the immediate effect will be a modest drop in the interest earned on savings held for six months or longer. For borrowers, especially small firms and consumers, the lower loan rates should make credit cheaper, assuming their banks meet the State Bank’s requirements.