Weekly Bulletin on Banking Operations (May 11-15, 2020)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites (at the end of the days) fluctuated between VND 23,250/23,430 to VND 23,280/23,460 against the USD. During the first two days of the week, the exchange rates were around VND 23,250/23,430 per USD, then rose up to VND 23,280/23,460 per USD (on May 14) before turned back down to VND 23,250/23,430 on Friday (May 15), down by VND 20 per USD for both buying and selling rates as compared to the last day of the previous week (May 8, 2020).
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were between 0.1% p.a – 0.2% p.a for demand and below 1-month term deposits, 4.0% p.a – 4.25% p.a for 1-month to below 6-month terms, 5.1% p.a – 6.6% p.a for 6-month to below 12-month terms, and 6.6% – 7.4% 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 interest 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 cap for VND lending interest rate for short-term loans of 5.5% p.a was applied to a number of sectors and fields.
- 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 – 4.5% p.a for short-term loans, and 4.2% 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 281,106 billion, an average of VND 56,221 billion per day, a decrease of VND 3,566 billion per day as compared to the previous week (May 4-8, 2020); meanwhile the transaction amount in USD was equivalent to VND 131,261 billion, an average of VND 26,252 billion per day, a decrease of VND 1,230 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 68% and 21% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 86% and 8% of the total amount of USD transactions respectively.
3.2. Average inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates decreased slightly for most terms as compared to the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were 1.41% p.a, 1.49% p.a and 2.31% p.a respectively.
- For transactions in USD: The average inter-bank interest rates decreased slightly for most terms as compared to the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were 0.13% p.a, 0.17% p.a and 0.54% p.a respectively.
The specific average inter-bank interest rates were as follows:
Unit: % p.a
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
|
VND |
1.41 |
1.49 |
1.76 |
2.31 |
1.83 |
4.10 |
- |
USD |
0.13 |
0.17 |
0.19 |
0.54 |
1.03 |
1.99 |
- |
Translated by Le Hang