Weekly Bulletin on Banking Operations (October 21-25, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were at VND 23,150/23,270 against the USD on the first day of the week, then slightly decreased and were quoted at VND 23,145/23,265 against the USD during the last four days of the week (unchanged as compared to the last day of the week of October 14-18, 2019).
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 295,389 billion, an average of VND 59,078 billion/day, an increase of VND 1,263 billion/day as compared to the week of October 14-18, 2019; meanwhile the transaction amount in USD was equivalent to VND 146,833 billion, an average of VND 29,367 billion/day, an increase of VND 7,121 billion/day as compared to the week of October 14-18, 2019.
Most VND transactions were for overnight and 1-week terms, accounting for 66% and 16% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 72% and 15% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For transactions in VND: As compared to the week of October 14-18, 2019, the average inter-bank interest rates decreased for most short-terms. Specifically, the average inter-bank interest rates for overnight term, 1-week term and 1-month term decreased by 0.03 percentage points p.a, 0.06 percentage points p.a and 0.06 percentage points p.a to 1.68% p.a, 1.93% p.a and 2.51% p.a respectively.
- For transactions in USD: The average inter-bank interest rates fluctuated slightly. Specifically, the average inter-bank interest rates for overnight term, 1-week term and 1-month term were 1.86% p.a, 1.97% p.a and 2.03% p.a respectively.
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 |
1.68 |
1.93 |
2.12 |
2.51 |
4.24 |
4.98 |
3.35 |
USD |
1.86 |
1.97 |
1.96 |
2.03 |
2.52 |
2.84 |
3.79 |
Translated by Le Hang