Weekly Information on Banking Activities (November 12-16, 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 10-12% 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: the rates were stable as compared to the previous week. Several commercial banks offered incentive credit packages. For instance, the Technological Joint – Stock Commercial Bank offered a 12 month term product of “12+ super-flexible fund” for those SMEs with revenue of less than VND 100 billion to meet their timely demand of working capital increase; the An Binh Joint-Stock Commercial Bank in cooperation with Saigon Ford provided loans for car purchase with the lending rate reduction of 2% p.a. within the first 3 months of disbursement; the ANZ Vietnam Bank reduced the lending rate of 4% p.a for personal loans and 3% p.a for customers to buy/ mortgage houses applicable from November 12, 2012 to February 1, 2013. 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 9 - commonly at 11-13 - the lowest rate at 7.5 |
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 59,372 billion and a USD amount equivalent to VND 30,944 billion , i.e. VND 11,874 and VND 6,189 billion per day averagely.
Most transactions were short terms with an amount of VND 44,798 billion, accounting for 75% of the total amount of VND transactions. Short – term transactions in USD reached an amount equivalent to VND 24,891 billion, accounting for 80% of the total amount of USD transactions.
2.2. The average inter- bank interest rates:
For the rates in VND, the average interest rates decreased for most terms, especially 0.41 percentage point p.a (3 month term) and 1.41 percentage point p.a (3 week term). There was no transaction for over 9 month terms.
For the rates in USD, the average interest rates for 1 week, 2 week and 6 month terms decreased by 0.06, 0.15 and 0.37 percentage points respectively. The rates for 3 week to 1 month terms increased, of which the rate for 2 month term increased by 0.95 percentage point p.a, other rates rose by 0.01 percentage point p.a to 0.22 percentage point p.a. The overnight rate remained unchanged at 0.31 percentage point p.a. There was no transaction for 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 |
Over 9 months and below 12 months |
Over 12 months |
VND |
2.31 |
3.40 |
3.92 |
4.13 |
6.08 |
7.16 |
7.63 |
8.36 |
- |
- |
- |
USD |
0.31 |
0.56 |
0.53 |
0.55 |
0.71 |
1.48 |
1.39 |
1.90 |
3.10 |
- |
- |
3. Exchange rate
The forex market showed positive developments. The VND slightly depreciated against USD at the beginning of the week. The liquidity was improved. The VND/USD trading exchange rate quoted by commercial banks was around 20,830-20,870.
LVH