Weekly information on banking operations (September 26 - 30, 2016)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- The VND mobilizing rates: Last week, the State-owned commercial banks and several joint stock banks decreased mobilizing rates around 0.3 – 0.5%/p.a. Currently, the rates were commonly 0.8 - 1% p.a for demand and below 1 month terms, 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: The USD mobilizing rates were commonly 0% p.a for individuals and 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 commercial banks continued offering the rates of 9 – 10% p.a for medium and long-term loans for priority fields. The rates were commonly 6.8% - 9.0% p.a for short-term and 9.3% – 11.0% p.a for medium and long-term ordinary loans. The lending rate for short term loans was 4-5% p.a applied to those customers who have good loan repayment track record, strong and transparent finance.
- The USD lending rates were relatively stable. The USD lending rates were commonly 2.8% – 6.0% p.a. The rates were 2.8 – 5.0% p.a for short term and 5.0 – 6.0% p.a for medium and long term loans.
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 |
6.8-8.5 |
9.3-10.3 |
- 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 |
2.8-4.3 |
5.0-6.0 |
|
Group of joint stock commercial 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 |
4.2-5.0 |
5.1-6.0 |
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 151,631 billion, increased by VND 22,921 billion as compared to the week of September 19-23; and USD amount equivalent to VND 88,660 billion, increased by VND 10,982 billion in comparison to the previous week.
Most VND transactions were 1 week terms and overnight (accounting 26% and 41% of the total amount of VND transactions respectively). Transactions in USD were mostly overnight and 1 week terms which accounted for 47% and 14% of the total amount of USD transactions respectively.
2.2. The average inter-bank interest rates:
For VND transactions: As compared to the week of September 19-23, the inter-bank interest rates increased for most key terms below one month. Specifically, the rate for overnight and 1 week terms went up by 0.08 percentage point and 0.09 percentage point to 0.46% p.a and 0.55% p.a respectively; while the rate for 1 month term slightly went down by 0.02 percentage point to 1.65% p.a.
For USD transactions: The average inter – bank interest rates fluctuated for most key terms, specifically average inter – bank interest rates of overnight and one week terms slightly increased to 0.46% p.a and 0.524% p.a respectively; the average inter – bank interest rate for 1 month term decreased (by 0.18 percentage point p.a) to 0.59% p.a.
The specific average inter-bank interest rates were as follows for September 26-30, 2016
Term |
Over night |
1 week |
2 weeks |
1 month |
3 months |
6 months |
9 months |
VND |
0.46 |
0.55 |
0.67 |
1.65 |
3.20 |
4.45 |
- |
USD |
0.46 |
0.54 |
0.58 |
0.59 |
0.99 |
2.45 |
- |
3. Forex market:
The buying and selling VND/USD exchange rate quoted by the Vietcombank were stable at 22,270/22,340 VND/USD in the first four days of the week, then decreased to 22,265/22,335 VND/USD on the last day of the week (decreased by 05 VND/USD in both buying and selling as compared to the last day of previous week).
The SBV will continue to conduct synchronous measures and tools of monetary policy to stabilize forex market and foreign exchange rate within the set band.
The State Bank of Vietnam
Translated by Thoa Le