Weekly Information on Banking Activities (August 6 - 10, 2012)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- The VND mobilizing rates were stable as compared to the previous week. The rate for demand term was 1 -2% p.a, the rates were commonly 2% p.a for below 1 month terms; 8.8-9% p.a for 1 to below 12 month terms; and 10-12% p.a for 12 month and 12 month plus terms.
- The USD mobilizing rates were commonly 2% p.a for individuals and 0.5-1% p.a for economic institutions.
1.1. Lending rates:
- The VND lending rates: the Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) offered the “SME Success” program for clients as small and medium enterprises with the lending rates of 12.5 – 13.5% p.a applicable to the maximum term of 6 months for each loan; the Maritime Joint-Stock Commercial Bank offered products for financing the “MFloat” import with the value of VND 5,000 billion with the fixed rate of 7% p.a (monthly payment) and the adjusted rate (paid at the completion date of disbursement or by the date of final accounting for the loan) to the cap of 9% p.a. The rates were commonly 10% - 13% p.a for agricultural and rural development, exporters, supporting industries and SMEs; and 12-15% p.a for other productive and business sectors.
- The USD lending rates were commonly 5-7% p.a for short term and 6-8% 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 production and exporters |
- commonly at 11-15 - the lowest rate at 10 - Commonly at 10-13 - the lowest rate at 9 |
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 production and exporters |
- commonly at 12-15 - the lowest rate at 12 - commonly at 11-13 - the lowest rate at 11 |
16-17.5 15-16.5 |
USD |
5.5-7.0 |
6.5-8.5 |
2.1. Inter-bank transactions turnover:
According to the reports of commercial banks, the total amount of transactions in the inter-bank market reached about VND 113,863 billion and a USD amount equivalent to VND 56,291 billion , i.e. VND 22,773 and VND 11,258 billion per day averagely.
Most transactions were short terms with an amount of VND 70,759 billion, accounting for 62% of the total amount of VND transactions. Short – term transactions in USD reached an amount equivalent to VND 43,442 billion, accounting for 77% of the total amount of USD transactions.
2.2. The average inter- bank interest rates:
For the rates in VND, the average inter-bank interest rates for most terms were down, of which the rates for 6 and 12 month terms slightly declined by 0.12 and 0.10 percentage points p.a respectively. The other rates decreased by 0.62 percentage point p.a (2 week term) to 1.86 percentage point p.a (3 week term); the rate for over 12 month term reduced by 6.98 percentage points, but transactions for this term were marginally counted. The rate for 9 month term rose by 2.67 percentage point p.a.
For the rates in USD, the average interest rates for 1 week to 1 month terms slightly declined by 0.03 percentage point p.a to 0.17 percentage point p.a; the rates for 2 to 12 month terms increased by 0.04 percentage point p.a (2 month term) to 0.66 percentage point p.a (3 month term). No transaction for 9 month and over 12 month terms was counted.
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 |
2.21 |
2.64 |
3.04 |
3.53 |
4.87 |
7.85 |
7.09 |
8.99 |
11.17 |
8.90 |
4.37 |
USD |
0.28 |
0.57 |
0.50 |
0.42 |
0.56 |
0.98 |
2.18 |
2.64 |
- |
3.29 |
- |
3.Exchange rate
The forex market showed relatively stable movements. The liquidity of the banking sector was improved; the foreign currency position was slightly positive and credit institutions could buy foreign currencies from their clients. The VND/USD trading exchange rate quoted by commercial banks was around 20,835-20,870.
LVH