Weekly Information on Banking Activities (March 11-15, 2013)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- The VND mobilizing rates were stable as compared to the previous week. 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 previous week. Several commercial banks offered incentive credit packages. For instance, the Ocean Joint-Stock Commercial Bank offered VND 800 billion for short-term loans for households with the interest rate of 13.5% p.a for the first 6 months in order to support finance to the clients who expand the production and business; the Asian Joint-Stock Commercial Bank offered the program of “Financing the exporting with the preferential interest rates” for importing enterprises with the program scale of up to VND 2,000 billion with the rate reduction of 30 percentage points as compared to the ordinary rates. 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 87,037 billion and a USD amount equivalent to VND 46,604 billion, i.e. VND 17,047 billion and VND 9,321 billion per day averagely.
Most transactions were overnight and 1 week terms with an amount of VND 68,813 billion, accounting for 79% of the total amount of VND transactions. Transactions in USD reached an amount equivalent to VND 39,265 billion, accounting for 84% of the total amount of USD transactions.
2.2. The average inter- bank interest rates:
For the rates in VND, the average interest rates for below 2 week and 6 month terms increased, of which the rates for below 2 week was up by 0.18 percentage point p.a to 0.38 percentage point p.a.; the rate for 6 month rose 0.77 percentage point p.a. The other rates decreased, of which the rates for 3 week to 3 month terms declined by 0.03 percentage point p.a (3 week term) to 0.75 percentage point p.a (1 month term); The rate for 12 month term declined by 4.07 percentage points p.a. Transactions for 3 week and 2 month terms were marginal. There was no transaction for 9 month and over 12 month terms.
For the rates in USD, the average interest rates for overnight, 2 week, 3 week and 3 month terms decreased, of which the overnight rate declined by 0.05 percentage point p.a. The other rates decreased by 0.44 percentage point p.a (3 week term) to 0.59 percentage point p.a (2 week term). The rates for 1 week and 6 month terms increased by 0.04% and 0.14% respectively. The rate for 1 month remained unchanged, at 0.61% p.a. There was no transaction for 2 month, 9 month and over 12 month terms. Transactions for 3 week and 12 month terms were marginal.
The specific average inter-bank interest rates were as follows:
Term |
Overnight |
1 week |
2 weeks |
3 weeks |
1 month |
2 months |
3 months |
6 months |
9 months |
12 months |
Over 12 months |
VND |
3.17 |
3.55 |
4.05 |
4.24 |
5.01 |
5.04 |
6.26 |
7.75 |
- |
8.00 |
- |
USD |
0.18 |
0.43 |
0.28 |
0.32 |
0.61 |
- |
1.51 |
2.57 |
- |
3.44 |
- |
3. Exchange rate
The foreign exchange market developed positively. The exchange rates were stable. The liquidity was improved. Credit institutions proactively sold foreign currencies in the inter-bank market to meet the forex requirements of clients. The VND/USD trading exchange rate quoted by commercial banks was around 20,920-20,960.
My Huong