Tightening liquidity tests growth targets

As interest rates enter an upward cycle, higher borrowing costs are exerting broad pressure on businesses, compelling investors to act more cautiously and placing greater demands on policymakers.

- By Ha Truc

Following the Lunar New Year, competition for deposit mobilisation has heated up again as a series of banks rolled out bonus interest incentives, pushing deposit rates at many institutions above 8 per cent per annum.

SeABank and Cake by VPBank are offering up to 8.3 and 8.2 per cent per annum for six-month tenors respectively, while Vikki Bank is lifting its top rate to 7.69 per cent for 13-month deposits, and OCB is pushing online savings rates to as high as 8.4 per cent per annum for balances from $20,000.

On the lending side, rates have also shown an upward trend. As of March 2, among 21 commercial banks that announced their average lending rates for January, most recorded increases compared to December 2025. VCBNeo posted the sharpest rise, up 1.53 percentage points to 8.12 per cent per annum, with an average lending-deposit spread of 0.82 per cent per annum.

Rising deposit rates have pushed up banks' funding costs. This inevitably leads to adjustments in lending rates. Currently, mortgage and real estate investment loan rates at many banks have climbed to 12-14 per cent per annum, with some floating rates reaching 15 per cent per annum after promotional periods.

Banking and finance expert Dr. Nguyen Tri Hieu noted that lending rates are increasing as state-owned banks prioritise capital allocation for key national infrastructure and public investment projects. As a result, commercial lending resources may become constrained.