Weekly Bulletin on Banking Operations (September 16-20, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites increased slightly to VND 23,180/23,300 against the USD during the first two days of the week; then decreased gradually during the last three days, and were quoted at VND 23,150/23,270 against the USD at the end of the week (down by 5 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 3.0% – 6.0% p.a. The rates were 3.0% 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 337,321 billion, an average of VND 67,464 billion/day, an increase of VND 7,894 billion/day as compared to the week of September 9-13, 2019; meanwhile the transaction amount in USD was equivalent to VND 152,116 billion, an average of VND 30,423 billion/day, a decrease of VND 126 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 63% and 16% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 67% and 16% 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 and 1-month terms decreased by 0.82 percentage points p.a, 0.66 percentage points p.a and 0.69 percentage points p.a to 2.38% p.a, 2.61% p.a and 3.25% 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 1-week and 1-month terms increased by 0.06 percentage points p.a and 0.01 percentage point p.a to 2.19% p.a and 2.26% p.a respectively, while the average inter-bank interest rate for overnight term was down by 0.04 percentage points p.a to 2.06% 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 |
2.38 |
2.61 |
2.88 |
3.25 |
4.47 |
4.60 |
5.71 |
USD |
2.06 |
2.19 |
2.16 |
2.26 |
2.73 |
2.63 |
- |
Translated by VA