Quite a few banks saw their loan-to-deposit ratios (LDR) approach 100% in late Q4 2025, according to SSI Research. Liquidity had grown increasingly dependent on State Treasury deposits, the OMO channel, and foreign capital rather than core deposit growth — setting the stage for fierce competition in Q1 2026. Total customer deposits across the system have risen just 0.2% year-to-date, but the split tells the real story: state-run banks saw a fall of 0.7% while private banks posted a 1.3% uptick, reflecting a clear migration of savings toward higher-rate offerings. At their peak, deposit rates reached 9–9.5% — up 120–150 basis points. The sluggish deposit picture reflects both structural pressures and seasonal cash flow dynamics: a trend toward higher cash holdings following recent regulatory updates, slower money turnover after heavy real estate disbursements in prior years, and the typical year-start dip in corporate deposits. Against this backdrop, banks have leaned on alternative funding — certificates of deposit, bonds, and foreign capital — with notable issuance volumes at BID (+VND78 trillion), ACB (+VND23 trillion), and MBB (+VND22 trillion). The outlook is cautiously optimistic. Deposit growth should recover as high interest rates continue attracting savers, corporate deposit seasonality normalizes, and recent tax […]