Weekly Information on Banking Activities (February 18 - 23, 2013)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- The VND mobilizing rates were stable as compared to the week before the Lunar New Year (February 4-8, 2013). The rates were commonly 1 - 2% p.a for demand and below 1 month terms, 7.8-8% p.a for 1 to below 12 month terms; and 10-11% p.a for 12 month and 12 month plus terms (several small joint-stock commercial banks still maintained the rate of 12% p.a for over 12 month term).
- The USD mobilizing rates were commonly 2% p.a for individuals and 0.5% p.a for economic institutions.
1.2. Lending rates:
- The VND lending rates were stable as compared to the week before the Lunar New Year. The rates were commonly 9% - 12% p.a for agricultural and rural development, exporters, supporting industries, SMEs and high-tech enterprises; 11-15% p.a for short-term loans for other productive and business sectors, and 14.6-17.5% for long term loans.
- The USD lending rates were commonly 5-7% p.a for short term and 6-8.5% p.a for medium and long terms.
The specific lending rates were as follows:
Group of commercial banks |
Currency |
Short term (% p.a.) |
Medium and long terms (% p.a.) |
Group of state- owned commercial banks |
-VND applicable to ordinary loans -VND applicable to loans for agricultural and rural development, exporters, supporting industries, SMEs and high-tech enterprises |
11-15 9-12 |
14.6-16.5 14.6-16 |
USD |
5.0-6.0 |
6.0-7.5 |
|
Group of joint-stock commercial banks |
-VND applicable to ordinary loans -VND applicable to loans for agricultural and rural development, exporters, supporting industries, SMEs and high-tech enterprises |
12-15 11-12 |
16-17.5 15-16.5 |
USD |
5.5-7.0 |
6.5-8.5 |
2. Inter-bank transactions turnover:
2.1. Transactions:
According to the reports of credit institutions, the total amount of transactions in the inter-bank market reached about VND 71,089 billion and a USD amount equivalent to VND 46,637 billion, i.e. VND 14,218 billion and VND 9,327 billion per day averagely.
Most transactions were overnight and 1 week terms with an amount of VND 51,146 billion, accounting for 72% of the total amount of VND transactions. Transactions in USD reached an amount equivalent to VND 29,058 billion, accounting for 62% of the total amount of USD transactions.
2.2. The average inter- bank interest rates:
For the rates in VND, the average interest rates decreased for below 1 month terms and 12 month term, of which the rates for 1 week and 12 month term were down by 0.31% p.a and 0.23% p.a respectively. The rates for overnight and 2 week to 1 month terms declined by 0.97 percentage point p.a (1 month term) to 1.58 percentage point p.a (overnight term). The rates for 2 month, 3 month and 6 month increased by 0.05% p.a, 1.17% p.a and 0.38% p.a respectively. There was no transaction for 9 month and over 12 month terms. Transactions for 6 month plus term were marginal
For the rates in USD, the average interest rates for 2 week to 6 month terms decreased by 0.06 percentage point p.a (3 week term) to 0.37 percentage point p.a (3 month term). The rates for 1 week increased by 0.05 percentage point p.a. The rate for overnight term remained unchanged at 0.25% p.a. There was no transaction for 9 month plus terms.
The specific average inter-bank interest rates were as follows: Kỳ hạn |
Qua đêm |
1 tuần |
2 tuần |
3 tuần |
1 tháng |
2 tháng |
3 tháng |
6 tháng |
9 tháng |
12 tháng |
Trên 12 tháng |
VND |
3.24 |
3.94 |
4.55 |
4.82 |
5.47 |
6.18 |
7.07 |
7.33 |
- |
11.33 |
- |
USD |
0.25 |
0.56 |
0.77 |
0.63 |
0.95 |
0.29 |
2.06 |
2.47 |
- |
- |
- |
3. Exchange rate
The forex market was unstable. The main reason was due to several groundless rumors, having negative influence on the market. After several means of communication and SBV Website posted SBV’s official opinion on the exchange rate and the developments of the foreign exchange market, the psychology of investors was improved. The revenue and position of foreign currencies developed stably. Commercial banks proactively sold foreign currencies in the inter-bank market, meeting requirements of clients. The exchange rate depreciated and became stable at the end of the week. The VND/USD trading exchange rate quoted by commercial banks was around 20,840-20,920.
My Huong