Credit has been expanding rapidly, while capital mobilization is growing at a slower pace, placing mounting pressure on the balance sheets of commercial banks. Against this backdrop, the State Bank of Vietnam (SBV) has just decided to cut the reserve requirement ratio by half for four banks tasked with taking over four weak banks placed under special control. This move is not only an immediate capital support measure but is also seen as a policy “carrot” for institutions shouldering heavy responsibilities. Rapid credit growth, rising interest rate pressure According to the SBV, as of July 28, 2025, loans in the banking system had risen by around 9.68% compared to the end of 2024—higher than the same period last year. The surge in capital demand stems from consumption, trade, and investment across both the public and private sectors, helping to boost credit growth across all fields. The National Statistics Office (NSO) reported that total retail sales of goods and services in the first half of the year grew 9.3% year-on-year, while total investment capital in the society increased 9.8%. Public-sector consumption expanded, and trade activities remained resilient despite ongoing tariff-related uncertainties. Meanwhile, capital mobilization during the same period grew only 6.72%, […]