Weekly Bulletin on Banking Operations (October 7 – 11, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were VND 23,145/23,265 against the USD during the first day of the week; then decreased to VND 23,140/23,260 against the USD, and remained stable at this level within the last four days of the week (unchanged as compared to the last day of the previous week).
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 – 1% p.a for demand and below 1-month term deposits, 4.5% p.a – 5.5% p.a for 1-month to below 6-month terms, 5.5% p.a – 6.8% 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% – 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% – 6.0% p.a. The rates were 3.0% p.a – 4.7% p.a for short-term loans and 4.5% – 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 296,243 billion, an average of VND 59,249 billion/day, an increase of VND 2,172 billion/day as compared to the week of September 30 – October 4, 2019; meanwhile the transaction amount in USD was equivalent to VND 141,168 billion, an average of VND 28,234 billion/day, an increase of VND 645 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 62% and 22% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 62% and 24% 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, 1-week and 1-month terms decreased by 0.08 percentage points p.a, 0.20 percentage points p.a and 0.06 percentage points p.a to 1.94% p.a, 2.21% p.a and 3.02% p.a respectively.
- For transactions in USD: 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 and 1-week terms decreased by 0.01 percentage point p.a and 0.08 percentage points p.a to 1.92% p.a and 2.00 % 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 |
1.94 |
2.21 |
2.42 |
3.02 |
4.27 |
5.13 |
5.70 |
USD |
1.92 |
2.00 |
2.12 |
2.10 |
2.36 |
2.78 |
- |
Translated by VA