Weekly Information on Banking Activities (June 18 -22, 2012)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- The mobilizing rates for below 12 month terms were stable, and the rate for over 12 months terms slightly increased by 0.5 -1 percentage point p.a. The rate for demand term was at 1 -2% p.a, the rates were commonly 2% p.a for below 1 month terms; 8.8-9% p.a for 1 month to below 12 month terms; and 10-12% p.a for 12 month and over 12 month terms. The SBV issued Document No. 3772/NHNN-CSTT on June 21 to require credit institutions to strictly implement the regulations of the maximum VND mobilizing rate in line with Circular No. 19/2012/TT-NHNN dated June 8, 2012 and Circular No. 04/2011/TT-NHNN dated March 10, 2011.
- 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: credit institutions actively offered credit packages for 4 priority areas with the rate equal or lower than the ceiling rate of 13% p.a. Several credit institutions offered credit packages for encouraged non – productive sectors with the rate of 13 – 16% p.a. The Vietnam Technological and Commercial Joint- stock Bank (Techcombank) extended short term loans in VND with the rate of 7% p.a provided that these loans were secured in USD terms and linked to the appreciation of VND/USD exchange rate of less than 3%. The rates were commonly 11% - 13% p.a for agricultural and rural development, exporters , supporting industries and SMEs; 14-17% p.a for other productive and business enterprises; and 16-20% 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 12 - Commonly at 12-13 - 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 13.5 - commonly at 13 - the lowest rate at 12 |
17-18.5 15.5-18 |
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 132,732 billion and a USD amount equivalent to VND 79,034 billion , i.e. VND 26,546 and VND 15,807 billion per day averagely.
Most transactions were short terms, such as the overnight and 1 week terms with an amount of VND 99,418 billion, accounting for 75% of the total amount of VND transactions. Most transactions in USD were short term, reaching an amount equivalent to VND 60,193 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 for below 3 months and 9 months terms were on a upward trend, of which the rates for 3 month term increased by 0.25 percentage point p.a, the rates for other term were up by 0.41 percentage point p.a (for 1 month term) to 0.84 percentage point p.a (for 2 week term); the rates for 6 and 12 month terms reduced by 0.6 and 0.89 percentage points p.a respectively. No transaction for over 12 month terms was counted.
For the rates in USD, the average interest rates for 2 week, 3 week and 2 month terms were up by 0.04, 0.05, 0.76 percentage points p.a respectively. The rate for other terms decreased by 0.06 percentage point p.a (for 6 month term) to 0.80 prcentage point p.a (for 12 month term). No transaction for 9 month and over 12 month terms was counted.
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 |
5.88 |
6.90 |
7.45 |
9.14 |
8.32 |
8.09 |
8.17 |
8.23 |
11.50 |
9.78 |
- |
USD |
0.30 |
0.53 |
0.78 |
0.80 |
0.88 |
2.11 |
1.95 |
2.82 |
- |
2.00 |
- |
3.Exchange rate
The foreign exchange position of the whole banking sector continued to be positive. The VND/USD exchange rate in the inter- bank market was stable. The VND/USD trading exchange rate quoted by commercial banks was around 20,880-20,940.
DH