Weekly Information on Banking Activities (October 8 - 12, 2012)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- The VND mobilizing rates were stable in comparison with 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 11-13% 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.
1.2. Lending rates:
- The VND lending rates: the rates were stable in comparison with the previous week. Several commercial banks offered incentive credit packages. For instance, the Asian Joint-Stock Commercial Bank offered the fixed lending rate of 9.9% p.a for the first 3 months for buying houses and mortgaged loans; the Ho Chi Minh Housing Development Joint-Stock Commercial Bank offered the credit package of VND 1,500 billion with the interest rate of 9% p.a in order to help enterprises enhance their production and business. 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 8.95 - Commonly at 10-13 - the lowest rate at 8.95 |
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. Inter-bank transactions turnover:
2.1. Transactions:
According to the reports of commercial banks, the total amount of transactions in the inter-bank market reached about VND 70,967 billion and a USD amount equivalent to VND 54,688 billion , i.e. VND 14,193 and VND 10,938 billion per day averagely.
Most transactions were short terms with an amount of VND 62,469 billion, accounting for 88% of the total amount of VND transactions. Short – term transactions in USD reached an amount equivalent to VND 42,846 billion, accounting for 78% 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 decreased, of which the rate for overnight, 6 month and over 9 month to below 12 month terms decreased by 0.22, 0.33 and 0.07 perccentage points p.a respectively; the rates for 1 week to 3 month terms increased; however, the rate for 3 week term rose by 1.55 percentage point p.a, and other rates increased by 0.03 percentage point p.a (2 week term) to 0.58 percentage point p.a (1 month term). There was no transaction for over 9 month term.
For the rates in USD, the average interest rates for 2 week, 1 month and 6 month terms decreased by 0.18, 0.24 and 1.32 percentage points p.a respectively. The other rates increased, of which the rates for 2 month term rose by 0.46 percentage point p.a; the other rates slightly increased by 0.05 percentage point p.a (overnight term) to 0.15 percentage point p.a (1 week term). There was no transaction for 9 month term. Transactions for over 6 month and over 9 month to 12 month terms were marginal.
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 |
Over 9 months and below 12 months |
VND |
2.53 |
3.42 |
3.63 |
6.18 |
7.83 |
6.68 |
9.04 |
9.67 |
- |
10.93 |
USD |
0.32 |
0.58 |
0.25 |
0.86 |
0.88 |
0.88 |
2.41 |
1.60 |
- |
3.80 |
3. Exchange rate
The forex market registered the positive movement. The domestic currency slightly appreciated against the US dollar, the foreign currency liquidity was improved, and credit institutions continued to buy a large amount of foreign currencies from their clients. The VND/USD trading exchange rate quoted by commercial banks was around 20,835-20,875.
LVH