Weekly Information on Banking Activities (March 25-29, 2013)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- The VND mobilizing rates: After SBV reduced 1% p.a for benchmark rates and 0.5% p.a for the maximum VND mobilizing interest rate for 1 month to below 12 month terms applicable from March 26, 2013, commercial bank reduced mobilizing rates for below 12 month terms to the ceiling level set by SBV. The rates were commonly 1 - 2% p.a for demand and below 1 month terms, 6-7.5% p.a for 1 to below 12 month terms; and 9.5-10.5% p.a for 12 month and 12 month plus terms.
- The USD mobilizing rates were commonly 2% p.a for individuals and 0.5% p.a for economic institutions.
1.2. Lending rates:
- The VND lending rates: Together with the reduction of the ceiling mobilizing interest rate, the ceiling lending rates for short terms for 5 prioritized sectors including agricultural and rural development, exporters, supporting industries, SMEs and high-tech enterprises decreased to 11% p.a from 12% p.a. The Ho Chi Minh Development Joint-Stock Commercial Bank offered VND 1,500 billion for SMEs with the demand of working capital for projects of production and export with the interest rate of 11% p.a. The rates were commonly 9% - 11% p.a for agricultural and rural development, exporters, supporting industries, SMEs and high-tech enterprises; for other economic sectors, the rate is 11-13% p.a offered by state-own commercial banks and 12-15% p.a for loans offered by joint-stock commercial banks. Joint-stock commercial banks offered loans for several enterprises of prioritized sectors, of healthy, transparent finance and having effective business plans with the interest rate of 9-10% p.a.
- The USD lending rates were commonly 5-7% p.a for short term and 6-8.5% 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 and rural development, exporters, supporting industries, SMEs and high-tech enterprises |
11-13 9-11 |
14.6-16.5 14.6-16 |
USD |
5.0-6.0 |
6.0-7.5 |
|
Group of joint-stock commercial banks |
-VND applicable to ordinary loans -VND applicable to loans for agricultural and rural development, exporters, supporting industries, SMEs and high-tech enterprises |
12-15 10-12 |
16-17.5 15-16.5 |
USD |
5.5-7.0 |
6.5-8.5 |
2. Inter-bank transactions turnover:
2.1. Transactions:
According to the reports of credit institutions, the total amount of transactions in the inter-bank market reached about VND 86,069 billion and a USD amount equivalent to VND 63,083 billion, i.e. VND 17,214 billion and VND 12,617 billion per day averagely.
Most transactions were overnight and 1 week terms with an amount of VND 65,823 billion, accounting for 76% of the total amount of VND transactions. Transactions in USD reached an amount equivalent to VND 46,335 billion, accounting for 73% of the total amount of USD transactions.
2.2. The average inter- bank interest rates:
For the rates in VND, the average interest rates for 3 month and 9 month terms decreased by 0.22 percentage point p.a and 1.00 percentage point p.a respectively. The other rates increased by 0.25 percentage point p.a (for 3 week and 2 month terms) to 0.53 percentage point p.a (for overnight term). The rates for 1 month term rose slightly by 0.07 percentage point p.a. The rate for 6 month term remained at 7.18% p.a.
For the rates in USD, the average interest rates for most terms decreased by 0.02 percentage point p.a (overnight term) to 0.66 percentage point p.a (1 month term). The rate for 12 month term decreased by 1.45 percentage point p.a. Transactions for 3 week and 6 month and 6 month plus terms were marginal. The rate for 1 week term slightly increased by 0.01 percentage point p.a.
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 |
3.39 |
3.96 |
4.24 |
4.46 |
4.83 |
5.58 |
6.04 |
7.18 |
8.50 |
10.51 |
- |
USD |
0.20 |
0.50 |
0.42 |
0.25 |
0.46 |
0.56 |
1.59 |
2.42 |
- |
2.16 |
- |
3. Exchange rate
The foreign exchange market developed positively. The exchange rates were stable. The liquidity was improved. Credit institutions proactively sold foreign currencies in the inter-bank market to meet the forex requirements of clients. The VND/USD trading exchange rate quoted by commercial banks was around 20,920-20,960.
My Huong