Speaking at the event to review the banking sector’s performance in 2025 and announce plans for 2026, Deputy Governor of the SBV Pham Thanh Ha reported that as of December 24, 2025, credit growth had reached approximately 17.87% compared to the end of 2024. This is a sharp increase year-on-year and ranks among the highest in recent years.

The credit structure continues to be focused on business and production sectors, particularly those prioritized by the government as key drivers of growth.

According to Ha, 78% of total outstanding credit in the economy serves business and production activities. Credit for supporting industries and high-tech sectors saw the highest growth rates, at over 27% and 20%, respectively.

Pham Chi Quang, Head of the SBV's Monetary Policy Department, said the robust credit growth reflects the banking system’s efforts to supply capital for economic activity, support businesses, and fuel overall growth.

He noted that the capital utilization ratio in the banking system had reached around 146%, indicating a very high usage of funds - especially significant given that Vietnam is still classified as a middle-income economy. “This presents considerable challenges for policy management, particularly in balancing funding sources and managing liquidity risks,” he said.

Quang pointed out a structural issue in Vietnam’s banking sector: most mobilized funds are short-term, while medium- and long-term loans account for about 50% of total lending. This creates a constant risk of maturity mismatch. With strong credit demand, liquidity pressures are inevitable.

Quang explained that Vietnam’s economy is transitioning toward a growth model based more on new drivers, supported by proactive and efficient fiscal policy combined with prudent and flexible monetary policy.

“In reality, the SBV has taken strong actions with the consistent goal of supporting high economic growth while striving to maintain reasonable interest rates. This is a difficult trade-off, as rapid credit expansion makes it challenging to keep rates low. Nonetheless, we have largely achieved this goal,” he said.

He added that year-end payment needs and capital demand typically spike due to seasonal effects, intensifying pressure on the system's liquidity.

“As of December 24, capital mobilization growth stood at just around 14.1%, significantly lower than the 17.87% growth in credit. This gap is the main driver of liquidity stress. On top of that, banks face increasing competition from other investment channels, which has made it harder to attract deposits fast enough to match rising loan demand,” Quang explained.

Amid these conditions, interbank interest rates have spiked at times, signaling liquidity concerns. In response, the SBV has been deploying a range of coordinated measures, particularly the flexible use of open market operations. The central bank stands ready to supply capital and support liquidity for credit institutions to ensure smooth operations and meet the economy’s payment needs.

“We are confident that with the ongoing strong measures, liquidity conditions will improve soon, thereby stabilizing the monetary market and the overall macroeconomic environment,” Quang affirmed.

Tuan Nguyen