Weekly information on banking operations (May 4 - 8, 2015)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- The VND mobilizing rates: The rates were commonly 0.8 - 1% p.a for demand and below 1 month term, 4.5 - 5.4% p.a for 1 to below 6 month terms, 5.4 - 6.5% p.a for 6 month to below 12 month terms; and 6.4 – 7.2% p.a for 12 month plus terms.
- The USD mobilizing rates were stable as compared to the previous week, the rates were commonly 0.75% p.a for individuals and 0.25% p.a for economic institutions.
1.2. Lending rates:
- The VND lending rates: The average rates were commonly 6- 7% p.a for short-term loans for priority fields, and state-owned joint-stock commercial banks continued offering the rates of 9 - 10 % p.a for medium and long-term loans for priority fields; and the rates were commonly 7 - 9% p.a for short-term and 9.3 – 11% p.a for medium and long-term ordinary loans.
- The USD lending rates were commonly 3 – 6.7% p.a. The rates were 3 – 5.5% p.a for short term and 5.5 – 6.7% p.a for medium and long terms.
The specific lending rates were as follows:
Groups 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 |
7.0 – 8.8 |
9.3 – 10.5 |
- VND applicable to loans for agricultural and rural development, exporters,supporting industries, SMEs and hi-tech enterprises |
6.0 - 7.0 |
9.0 – 10.0 |
|
|
USD |
3.0 - 4.5 |
5.5 - 6.5 |
Group of joint-stockcommercial banks |
- VND applicable to ordinary loans |
7.8 - 9.0 |
10.0 – 11.0 |
- VND applicable to loans for agricultural and rural development, exporters, supporting industries, SMEs and hi-tech enterprises |
7.0 |
10.0 – 10.5 |
|
|
USD |
4.5 – 5.5 |
6.0 – 6.7 |
2. Inter-bank transaction turnover:
2.1. Transactions:
According to the reports of credit institutions and foreign bank branches, the total amount of transactions in the inter-bank market reached about VND 107,899 billion and USD amount equivalent to VND 43,548 billion, i.e VND 21,580 billion and VND 8,710 billion per day averagely.
Most VND transactions were overnight and 1 week terms (accounting for 32% and 38% of the total amount of VND transactions respectively). Transactions in USD were mostly overnight and 1 week terms which accounted for 49% and 19% of the total amount of USD transactions respectively.
2.2. The average inter-bank interest rates:
For VND transactions: The inter-bank interest rates for most terms decreased. Specifically, average interest rates of overnight, 1 week and 1 month terms declined to 3.85% p.a; 4.40% p.a and 4.50% p.a respectively.
For USD transactions: The average interest rate for most terms decreased. The average interest rate for overnight term was down to 0.27% p.a, while the average interest rates for below 1 month terms ranged from 0.52% p.a to 0.81% p.a.
The specific average inter-bank interest rates were as follows:
Term |
Over night |
1 week |
2 weeks |
1 month |
3 months |
6 months |
9 months |
VND |
3.85 |
4.40 |
4.74 |
4.50 |
4.90 |
4.86 |
- |
USD |
0.27 |
0.63 |
0.81 |
0.52 |
1.00 |
2.10 |
- |
3. Exchange rate:
The VND/USD exchange rate quoted by Vietcombank was 21.590/21.650 at the end of May 4, 2015, and was on an upward trend for the next two days. After the SBV announced the adjustment of the average inter-bank VND/USD exchange rate by 1% on May 7, the VND/USD exchange rate quoted by the Vietcombank was at new common exchange rate and on a downward trend on May 7 – 8, 2015. On May 8, the VND/USD exchange rate quoted by Vietcombank was 21,650/21,710, up by 60 VND/USD in comparison with the exchange rate of May 4, but lower than the new ceiling VND/USD exchange rate of 21,890.
Translated by TLH