Deposits at many banks grew modestly — and in some cases even declined — in the first quarter of 2026, despite strong credit growth The trend highlights growing pressure on banks to secure funding, as the loan-to-deposit ratio has climbed above 100% while cash flows have shifted due to seasonal factors, real estate activity, and a rising preference for holding cash. Speaking at a recent seminar organized by Thoi bao Ngan Hang, Pham Thi Thanh Tung, deputy director of the State Bank of Vietnam’s Credit Department, said total outstanding credit in the banking system had exceeded VND19.4 quadrillion as of April 28, 2026. The figure was up 4.42% from the end of 2025 and 18.26% higher than a year earlier, marking a relatively strong increase as the economy targets double-digit growth. Credit continued to flow strongly into priority sectors such as agriculture and rural development, small and medium-sized enterprises, exports, and high technology. Outstanding loans to the agriculture and rural sector alone reached around VND4.3 quadrillion, accounting for more than 22% of the total. Green credit also surpassed VND780 trillion. But behind the strong lending growth lies an increasingly pressing question for banks: where will the funding come from as […]