Weekly information on banking operations (August 21-25, 2017)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- VND mobilizing rates: The rates were commonly 0.8 - 1% p.a for demand and below 1-month terms, 4.5 - 5.4% p.a for 1 month to below 6 month terms, 5.4 - 6.5% p.a for 6 to below 12 month terms; and 6.4 – 7.2% p.a for 12 month plus term.
- USD mobilizing rates: The USD mobilizing rates were commonly 0% p.a for individuals and economic institutions.
1.2. Lending rates:
VND lending rates: Currently, the average rates were commonly 6-6.5% p.a for short-term loans for priority fields, while state-owned commercial banks offerred 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-terms, 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, applicable to those customers who have good loan-repayment track records, as well as transparent finances.
- USD lending rates were commonly 2.8% – 6.0% p.a. The rates were 2.8 – 4.7% p.a for short-term and 4.7 – 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 |
6.0-6.5 |
9.0-10.0 |
|
USD |
2.8-4.2 |
4.7-6.0 |
|
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 |
6.5 |
10.0-10.5 |
|
USD |
4.0-4.7 |
5.0-6.0 |
2. Inter-bank transaction turnover:
2.1. Transactions:
According to reports from credit institutions and foreign bank branches, the total amount of transactions in the inter-bank market reached about VND 162,666 billion while the USD amount was equivalent to VND 77,382 billion.
Most VND transactions were overnight and 1-week terms (accounting for 44% and 29% of the total amount of VND transactions respectively). Transactions in USD were mostly overnight and 1-week terms, accounting for 58% and 22% of the total amount of USD transactions respectively.
2.2. The average inter-bank interest rates:
For VND transactions: the average inter-bank interest rates for below 1 month terms were on upaward trend as compared to the previous week. Specifically, the inter-bank interest rates for overnight, 1-week increased to 0.63% p.a, 0.80% p.a while the rates for 1-month terms remained stable at 1.83%p.a.
For USD transactions: the average inter-bank interest rates for below 1 month terms were fluctuated as compared to the previous week. Specifically, the inter-bank interest rates for overnight, 1-week slightly increased to 1.26% p.a and 1.33% p.a respectively, while the rates for 1-month term decreased by 0.13% percentage point, to 1.53% 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 |
0.63 |
0.80 |
1.05 |
1.83 |
3.39 |
3.61 |
- |
USD |
1.26 |
1.33 |
1.37 |
1.53 |
1.81 |
4.18 |
2.62 |
3. Forex market:
The buying and selling VND/USD exchange rate quoted by Vietcombank at the end of the first three days were 22,690/22,760 VND/USD then slightly increased in the last two days to 22,695/22,765 VND/USD (increased by 5 VND/USD for both buying and selling prices as compared to the final trading day of the previous week).
The SBV will continue to conduct synchronous measures and monetary policy to stabilize the forex market and exchange rate within the set band.
The State Bank of Vietnam
Translated by Thoa Le