Weekly Information on Banking Activities (April 8 - 12, 2013)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- The VND mobilizing rates were stable as compared to the previous week, and commercial banks strictly implemented the ceiling interest rate set by the State Bank of Vietnam (SBV). The rates were commonly 1 - 2% p.a for demand and below 1 month terms, 6- 7.5% p.a for 1 to below 12 month terms; and 9.5-10.5% p.a for 12 month and 12 month plus terms.
- The USD mobilizing rates were commonly 2% p.a for individuals and 0.5% p.a for economic institutions.
1.2. Lending rates:
- The VND lending rates: The VND lending rates were stable as compared to the previous week. Several joint-stock commercial banks offered incentive credit packages. The Housing Development Joint-Stock Commercial Bank (HDBank) offered the program of “great fortune with HDBank” worth VND 1,000 billion for consumption and business - production by individuals with the interest rate of 0% p.a applicable for the first month and 11.86% p.a for the next 11 months; the Vietnam Prosperity Joint-Stock Commercial offered “the incentive lending program for SMEs – 2013 SME Success” with the total finance of VND 2,000 billion with the interest rate reduction of 1.5 – 2.5 percentage points p.a as compared to the ordinary rates. The rates were commonly 9% - 11% p.a for agricultural and rural development, exporters, supporting industries, SMEs and high-tech enterprises; for other economic sectors, the rate was 11-13% p.a offered by the state-own commercial banks and 12-15% p.a for loans offered by joint-stock commercial banks. Joint-stock commercial banks offered loans for the enterprises of thed prioritized sectors with healthy and transparent finance and effective business plans with the interest rate of 9-10% p.a.
- The USD lending rates were commonly 5-7% p.a for short term and 6-8.5% 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 and rural development, exporters, supporting industries, SMEs and high-tech enterprises |
11-13 9-11 |
13-15 13-15 |
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 and rural development, exporters, supporting industries, SMEs and high-tech enterprises |
12-15 10-11 |
14-16 13-15 |
USD |
5.5-7.0 |
6.5-8.5 |
2. Inter-bank transactions turnover:
2.1. Transactions:
According to the reports of credit institutions, the total amount of transactions in the inter-bank market reached about VND 95.511 billion and a USD amount equivalent to VND 51.274 billion, i.e. VND 19.102 billion and VND 10.255 billion per day averagely.
Most transactions were overnight and 1 week terms with an amount of VND 70.338 billion, accounting for 74% of the total amount of VND transactions. Transactions in USD reached an amount equivalent to VND 37.441 billion, accounting for 73% of the total amount of USD transactions.
2.2. The average inter- bank interest rates:
For the rates in VND, the average interest rates for below 1 and 12 month terms decreased by 0.47 percentage point p.a (1 month term) to 0.78 percentage point p.a (2 week term). The rate for 3 week term slightly declined by 0.06 percentage point p.a. The average rates for 2 , 3 and 9 month terms rose by 0.80, 0.44 and 0.25 percentage points p.a. respectively. There was no transaction for over 12 month terms. Transactions for 3 week, 9 and 12 month terms were marginal.
For the rates in USD, the average interest rates for 1 week to 1 and 6 month terms decreased by 0.07 percentage point p.a (1 week term) to 0.25 percentage point p.a (1 month term). The rate for 6 month term declined by 0.74 percentage point p.a. The rates for overnight, 2 , 3 and 12 months increased by 0.04 percentage point p.a (overnight term) to 0.35 percentage point p.a (2 month term). There was no transaction for 9 month and over 12 month terms. Transactions for 2 and 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 |
12 months |
Over 12 months |
VND |
3.03 |
3.55 |
3.84 |
4.62 |
5.21 |
7.67 |
6.37 |
7.36 |
9.00 |
9.75 |
- |
USD |
0.26 |
0.36 |
0.48 |
0.26 |
0.53 |
1.55 |
1.63 |
1.64 |
- |
3.13 |
- |
3. Exchange rate
The foreign exchange market developed positively. The VND slightly depreciated, and the liquidity was improved. Credit institutions proactively sold foreign currencies in the inter-bank market to meet the forex requirements of clients. The VND/USD trading exchange rate quoted by commercial banks was around 20,83-20,880.
LVH