Weekly Bulletin on Banking Operations (May 18-25, 2020)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites (at the end of the days) were on a downward trend. The exchange rates were quoted at VND 23,250/23,430 against the USD on the first day of the week, then decreased gradually to VND 23,180/23,360 against the USD (on May 22, 2020), before finally rose to VND 23,190/23,370 per USD on Friday (May 22), down by VND 80 per USD for both buying and selling rates as compared to the last day of the previous week (May 15, 2020).
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were between 0.1% p.a – 0.2% p.a for demand and below 1-month term deposits, 4.0% p.a – 4.25% p.a for 1-month to below 6-month terms, 5.1% p.a – 6.6% p.a for 6-month to below 12-month terms, and 6.6% – 7.4% 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 interest rates:
- The lending interest rates in VND: The common average rates were between 6.0% p.a – 9.0% p.a for short-term loans; 9.0% p.a – 11.0% p.a for medium and long-term loans. The cap for VND lending interest rate for short-term loans of 5.0% p.a was 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 286,594 billion, an average of VND 57,319 billion per day, an increase of VND 1,097 billion per day as compared to the previous week (May 11-15, 2020); meanwhile the transaction amount in USD was equivalent to VND 126,799 billion, an average of VND 25,360 billion per day, a decrease of VND 892 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 67% and 18% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 67% and 19% 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 decreased 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 0.7% p.a, 0.86% p.a and 1.95% p.a respectively.
- For transactions in USD: The average inter-bank interest rates decreased slightly 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 0.64% 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 |
0.70 |
0.86 |
1.00 |
1.95 |
2.65 |
3.80 |
3.70 |
USD |
0.11 |
0.13 |
0.14 |
0.64 |
0.60 |
2.03 |
2.16 |
Translated by Le Hang