Weekly Bulletin on Banking Operations (September 9-13, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were stable at VND 23,140/23,260 against the USD during the first four days of the week; then slightly increased and were quoted at VND 23,155/23,275VND against the USD on the last day of the week (up by 15 VND per USD for both buying and selling exchange rates as compared to the last day of the previous week).
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were between 0.2% p.a – 1% p.a for demand and below 1-month term deposits, 4.5% p.a – 5.5% p.a for 1-month to below 6-month terms, 5.5% p.a – 6.8% p.a for 6-month to below 12-month terms; and 6.6% – 7.5% p.a for 12-month plus terms.
- The mobilization interest rates in USD: The common mobilization interest rate in USD was 0% p.a for both individuals’ and institutions’ deposits.
2.2. Lending rates:
- The lending interest rates in VND: The common average rates were between 6.0% – 9.0% p.a for short-term loans; 9.0% p.a – 11.0% p.a for medium and long-term loans.
- The lending interest rates in USD: The common rates were between 2.8% – 6.0% p.a. The rates were 2.8% p.a – 4.7% p.a for short-term loans and 4.5% – 6.0% p.a for medium and long-term loans.
3. Inter-bank transaction operations:
3.1. Transactions:
According to the reports submitted by the credit institutions and the foreign bank branches, the total amount of transactions in the inter-bank market within the week reached approximately VND 297,850 billion, an average of VND 59,570 billion/day, an increase of VND 412 billion/day as compared to the week of September 3-6, 2019; meanwhile the transaction amount in USD was equivalent to VND 152,744 billion, an average of VND 30,549 billion/day, an increase of VND 6.217 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 66% and 22% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 71% and 19% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For transactions in VND: As compared to the previous week, the average inter-bank interest rates decreased for most short-terms. Specifically, the average inter-bank interest rates for overnight, 1-week, 1-month terms decreased by 1.04 percentage points p.a, 1.01 percentage points p.a and 0.48 percentage points p.a to 3.2% p.a, 3.27% p.a and 3.94% p.a respectively.
- For transactions in USD: The average inter-bank interest rates were relatively stable, with slight fluctuations around the rates of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms increased by 0.01 percentage point p.a and 0.03 percentage points p.a to 2.1% p.a and 2.13% p.a respectively, while the average inter-bank interest rate for 1-month term was down by 0.08 percentage points p.a to 2.25% p.a.
The specific average inter-bank interest rates were as follows:
Term |
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
VND |
3.20 |
3.27 |
3.44 |
3.94 |
4.65 |
5.11 |
- |
USD |
2.10 |
2.13 |
2.24 |
2.25 |
2.82 |
2.88 |
3.05 |
Translated by Le Hang