Weekly Information on Banking Activities (May 7 – 11, 2012)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- The VND mobilizing rates: the mobilizing rates were stable as compared to the previous week. The mobilizing rates were commonly 2.4-3% p.a for demand deposits and 3.5-4% for all the time deposits of less-than-one-month maturity, 11.5-12% p.a for over 1 month deposits.
- The USD mobilizing rates were commonly 2% p.a for individuals and 0.5-1% p.a for economic institutions.
1.1. Lending rates:
- The VND lending rates: following the issuarance of Circular No. 14/2012/TT-NHNN, credit institutions reduced the VND lending rates for short – terms to 15% p.a for agricultural and rural development, exporters, supporting industries and small and medium enterprises. Moreover, several commercial banks such as the HSBC Bank (Vietnam) Ltd., and the Bank for Investment and Development of Cambodia Plc. continued to decrease the VND lending rates for short – terms by 1 – 2 percentage points p.a for ordinary loans and to 15% p.a for production and business respectively, the lowest rate was 13.5% p.a. Currently, the rates were commonly 13.5% - 15% p.a for agricultural and rural development and exporters, and 12% p.a applicable to enterprises purchasing rice for inventory; 14-18% p.a for other productive and business enterprises; and 16.5-20% p.a for the non-productive sector.
- The USD lending rates were commonly 5.5-7.5% p.a for short term and 7.5-9% p.a for medium and long terms.
The specific lending rates were as follows:
Group of commercial banks |
Currency |
Short term (% p.a.) |
Medium and long terms (% p.a.) |
Group of state- owned commercial banks |
-VND applicable to ordinary loans -VND applicable to loans for agricultural production and exporters |
- commonly at 14-16.5 - the lowest rate at 14 - Commonly at 13.5-15 - the lowest rate at 12 |
16-18 15.5-17 |
USD |
6.0-6.5 |
6.5-7.5 |
|
Group of joint-stock commercial banks |
-VND applicable to ordinary loans -VND applicable to loans for agricultural production and exporters |
- commonly at 15-17.5 - the lowest rate at 15 - commonly at 15 - the lowest rate at 13 |
17-19.5 17-19.5 |
USD |
5.5-7.5 |
7.5-9.0 |
2. Inter-bank operations:
2.1. Inter-bank transactions turnover:
According to the reports of commercial banks, the total amount of transactions in the inter-bank market reached about VND 114,506 billion and a USD amount equivalent to VND 56,972 billion , i.e. VND 22,901 and VND 11,394 billion per day averagely.
Most transactions were short terms, such as the overnight and 1 week terms with an amount of VND 87,644 billion, accounting for 77% of the total amount of VND transactions. Most transactions in USD were short term, reaching an amount equivalent to VND 43,095 billion, accounting for 76% of the total amount of USD transactions.
2.2. The average inter- bank interest rates:
For the rates in VND, the average inter-bank interest rates of overnight, 2 week, 3 week and 2 month terms were down by 0.09, 0.5, 0.36 and 1.05 percentage points p.a respectively. The rate for 12 month term was unchaged at 13% p.a.The other rates increased with the rate for 6 month term registering the highest increase (6.41%).
For the rates in USD, the average interest rates for 2 week and 6 month terms decreased by 0.19 and 0.80 percentage points p.a respectively. The other rates increased by 0.08 (1 week term) to 0.85 percentage point p.a (2 month term). There was no transaction for 9 month, 12 month and over 12 month terms.
The specific average inter-bank interest rates were as follows:
Term |
Overnight |
1 week |
2 weeks |
3 weeks |
1 month |
2 months |
3 months |
6 months |
9 months |
12 months |
Over 12 months |
VND |
6.73 |
4.89 |
5.21 |
7.72 |
8.83 |
8.32 |
12.24 |
15.18 |
13.50 |
14.18 |
13.00 |
USD |
0.56 |
0.77 |
0.94 |
0.31 |
1.08 |
1.67 |
3.03 |
1.51 |
- |
- |
- |
3.Exchange rate
The forex market showed positive movements with the exchange rate being stable. The liquidity of the whole banking sector was improved. Credit institutions could continue to make net purchase of foreign currencies from their clients. The foreign exchange position was slightly positive. The VND/USD trading exchange rate quoted by commercial banks was around 20,820-20,870.
DH