Weekly Information on Banking Activities (October 1 - 5, 2012)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- The VND mobilizing rates were stable in comparison with the previous week. The rate for demand term was 1 -2% p.a, the rates were commonly 2% p.a for below 1 month terms; 8.8-9% p.a for 1 to below 12 month terms; and 11-13% p.a for 12 month and 12 month plus terms.
- The USD mobilizing rates were commonly 2% p.a for individuals and 0.5-1% p.a for economic institutions.
1.2. Lending rates:
- The VND lending rates: the rates were stable in comparison with the previous week. Several commercial banks offered incentive credit packages. For instance, the Tien Phong Bank offered the fixed lending rate of 9.9% p.a for the first 3 months for individuals and households buying and repairring houses and buying cars from October 1 to December 31, 2012; the Ocean Bank offered the lending rate which was 1 – 1.5 percentage points p.a lower than the rate of ordinary loans for those enterprises managed by women; the Vietnam Prosperity Joint-Stock Commercial Bank provided SME Success program with the maximum reduction level of 2 percentage point p.a as compared to the rate of ordinary loans for the first 6 months. The rates were commonly 10% - 13% p.a for agricultural and rural development, exporters, supporting industries and SMEs; and 12-15% p.a for other productive and business sectors.
- The USD lending rates were commonly 5-7% p.a for short term and 6-8% 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 11-15 - the lowest rate at 8.95 - Commonly at 10-13 - the lowest rate at 8.95 |
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 production and exporters |
- commonly at 12-15 - the lowest rate at 12 - commonly at 11-13 - the lowest rate at 11 |
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 commercial banks, the total amount of transactions in the inter-bank market reached about VND 66,848 billion and a USD amount equivalent to VND 44,761 billion , i.e. VND 13,370 and VND 8,952 billion per day averagely.
Most transactions were short terms with an amount of VND 47,427 billion, accounting for 71% of the total amount of VND transactions. Short – term transactions in USD reached an amount equivalent to VND 31,430 billion, accounting for 70% 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 for most terms decreased, of which the rate for overnight to 2 week, 6 month, over 9 month to below 12 month terms decreased by 0.30 perccentage point p.a (2 week term) to 0.94 perccentage point p.a (6 month term); the rates for 3 week to 3 month terms sharply declined by 1.26 to 3.35 percentage point p.a. There was no transaction for over 9 month to below 12 month terms.
For the rates in USD, the average interest rates for 1 week, 2 month and 6 month terms decreased by 0.08, 0.38, 0.50 percentage points p.a respectively. The other rates increased, of which the rates for 2 week term slightly increased; the rates for 3 week, 1 month, 3 month were up by 0.27 to 0.73 percentage point p.a. The rate for overnight term was unchanged as compared to the previous week. There was no transaction for 9 month term. Transactions for over 9 month to below 12 month terms were marginal.
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 |
Over 9 months and below 12 months |
VND |
3.10 |
3.93 |
3.90 |
5.89 |
8.73 |
9.65 |
10.79 |
10.94 |
- |
11.63 |
USD |
0.27 |
0.51 |
0.37 |
0.05 |
0.85 |
0.80 |
1.82 |
3.42 |
- |
3.80 |
3. Exchange rate
The domestic currency slightly depreciated against the US dollar, since credit institutions bought a large amount of foreign currencies to meet the demand of their clients. The foreign currency position of the whole banking system was positive, and credit institutions conducted net trading of foreign currencies with their clients. The VND/USD trading exchange rate quoted by commercial banks was around 20,870-20,910.
DH