Weekly Bulletin on Banking Operations (December 16-20, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were stable at VND 23,110/23,230 against the USD during the whole 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 – 0.8% p.a for demand and below 1-month term deposits, 4.3% p.a – 5.0% p.a for 1-month to below 6-month terms, 5.3% p.a – 7.0% 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 334,057 billion, an average of VND 66,811 billion/day, an increase of VND 1,468 billion/day as compared to the week of December 9-13, 2019; meanwhile the transaction amount in USD was equivalent to VND 145,644 billion, an average of VND 29,129 billion/day, a decrease of VND 7,813 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 66% and 15% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 72% and 12% 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 term, 1-week term and 1-month term decreased by 1.22 percentage points p.a, 1.05 percentage points p.a and 0.24 percentage points p.a to 2.79% p.a, 3.13% p.a and 4.11% p.a respectively.
- For transactions in USD: The average inter-bank interest rates increased slightly for most terms. Specifically, the average inter-bank interest rates for overnight term, 1-week and 1-month terms rose by 0.02 percentage point p.a, 0.07 percentage points p.a and 0.05 percentage points p.a to 1.61% p.a, 1.72% p.a and 2.03% 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 |
2.79 |
3.13 |
3.47 |
4.11 |
4.40 |
6.42 |
5.96 |
USD |
1.61 |
1.72 |
1.79 |
2.03 |
2.18 |
2.79 |
- |
Translated by VA