Weekly information on banking operations (November 28 – December 2, 2016)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- VND mobilizing rates: During the week several commercial banks decreased interest rates for short terms. 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-6-month terms, 5.4 - 6.5% p.a for 6-to-12 month terms; and 6.4 – 7.2% p.a for 12-month-plus terms.
- USD mobilizing rates: The USD mobilizing rates were commonly 0% p.a for individuals and economic institutions.
1.2. Lending rates:
VND lending rates: The average rates were commonly 6-7% p.a for short-term loans for priority fields, while state-owned commercial banks continued to offer 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 records, as well as strong and transparent finances.
- USD lending rates were commonly 2.8% – 6.0% p.a. The rates were 2.8 – 4.8% p.a for short-term and 4.9 – 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 5 priority sectors |
6.0-7.0 |
9.0-10.0 |
|
USD |
2.8-4.3 |
4.9-6.0 |
|
Group of joint stock commercial banks |
- VND applicable to ordinary loans |
7.8-9.0 |
10.0-11.0 |
- VND applicable to loans for 5 priority sectors |
7.0 |
10.0-10.5 |
|
USD |
4.2-4.8 |
5.0-6.0 |
2. Inter-bank transaction turnover:
2.1. Transactions:
According to reports from credit institutions and Vietnamese-based foreign banks, the total amount of transactions on the inter-bank market reached about VND 129,214 billion, a decrease of VND 7,114 billion as compared to the week of November 21-25, while the USD amount was equivalent to VND 73,139 billion, an increase of VND 15,960 billion as compared to the previous week.
Most VND transactions were overnight and 1-week terms (accounting for 44% and 30% of the total amount of VND transactions respectively). Transactions in USD were mostly overnight and 1-week terms, accounting for 46% and 15% 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 November 21-25, the inter-bank interest rates increased for most key terms below one month. Specifically, the rate for overnight, 1-week and 1-month terms increased by 1.05, 1.39, 1.08 percentage points p.a to 2.63%, 3.09% and 3.52% p.a respectively.
For USD transactions: The average inter-bank interest rates of most key terms below one month were in a downward trend. Specifically, the average inter-bank interest-rates for overnights and 1-week terms slightly decreased to 0.45% and 0.49% p.a respectively. The average inter-bank interest rate for 1-month term was unchanged at 0.77% 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 |
1.60 |
1.70 |
1.96 |
2.43 |
4.56 |
5.23 |
- |
USD |
0.46 |
0.52 |
0.54 |
0.77 |
1.28 |
1.32 |
- |
3. Forex market:
The buying and selling VND/USD exchange rate quoted at the end of trading day by Vietcombank decreased as compared to the previous week. The exchange rate decreased from 22,660/22,760 VND/USD in the first two days of the week to 22,620/22,700 VND/USD, then increased to 22,655/22,735 VND/USD on the last day of the week (increased by 25 VND/USD and 45 VND/USD for buying and selling price respectively as compared with the final trading day of the previous week).
The SBV will continue to conduct synchronous measures and utilize monetary policy tools to stabilize the forex market and foreign-exchange rates within the set band.
Translated by Le Hang