Weekly Bulletin on Banking Operations (August 24-28, 2020)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the website of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) (at the end of the days) were stable throughout the week at VND 23,090/23,270 per USD, unchanged as compared to the rates quoted on the last day of the previous week (August 21, 2020).
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were on a downward trend, standing at 0.1% p.a – 0.2% p.a for demand and below 1-month term deposits, 3.7% p.a – 4.1% p.a for 1-month to below 6-month terms, 4.4% p.a – 6.4% p.a for 6-month to below 12-month terms, and 6.0% p.a – 7.1% 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 on a downward trend. The cap for VND lending rate for short-term loans of 5.0% p.a continued to be 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 373,102 billion, an average of VND 74,620 billion per day, an increase of VND 1,791 billion per day as compared to the previous week (August 17-21, 2020); meanwhile the transaction amount in USD was equivalent to VND 149,475 billion, an average of VND 29,896 billion per day, a decrease of VND 1,439 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 73% and 14% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 81% and 10% 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 slightly fluctuated 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 0.19% p.a, 0.29% p.a and 0.6% p.a respectively.
- For transactions in USD: The average inter-bank interest rates fluctuated inconsiderably 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 0.11% p.a, 0.13% p.a and 0.25% 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 |
0.19 |
0.29 |
0.38 |
0.60 |
2.19 |
3.44 |
3.12 |
USD |
0.11 |
0.13 |
0.14 |
0.25 |
0.56 |
1.34 |
- |
Translated by VA