Weekly Bulletin on Banking Operations (December 23-27, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were stable at VND 23,110/23,230 against the USD during the whole week (unchanged as compared to the last day of the previous week (December 16-20, 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 – 0.8% p.a for demand and below 1-month term deposits, 4.3% p.a – 5.0% p.a for 1-month to below 6-month terms, 5.3% p.a – 7.0% 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% p.a – 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% p.a – 6.0% p.a. The rates were 3.0% p.a – 4.7% p.a for short-term loans and 4.5%p.a – 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 339,079 billion, an average of VND 67,816 billion per day, an increase of VND 1,005 billion per day as compared to the week of December 16-20, 2019; meanwhile the transaction amount in USD was equivalent to VND 134,876 billion, an average of VND 26,975 billion per day, a decrease of VND 2,154 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 60% 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 63% 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 terms. Specifically, the average inter-bank interest rates for overnight term, 1-week term and 1-month term decreased by 1.13 percentage points p.a, 0.82 percentage points p.a and 0.18 percentage points p.a to 1.66% p.a, 2.31% p.a and 3.93% p.a respectively.
- For transactions in USD: The average inter-bank interest rates increased slightly for most terms. Specifically, the average inter-bank interest rates for overnight term, 1-week and 1-month terms rose by 0.01 percentage point p.a, 0.01 percentage point p.a and 0.45 percentage points p.a to 1.62% p.a, 1.73% p.a and 2.48% 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 |
1.66 |
2.31 |
3.18 |
3.93 |
4.53 |
5.43 |
- |
USD |
1.62 |
1.73 |
1.81 |
2.48 |
2.36 |
2.66 |
3.67 |
Translated by Le Hang