Weekly information on banking operations (October 16- 20, 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 4.6 – 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 |
4.6-6.0 |
|
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 143,849 billion while the USD amount was equivalent to VND 62,952 billion.
Most VND transactions were overnight and 1-week terms (accounting for 46% and 29% of the total amount of VND transactions respectively). Transactions in USD were mostly overnight and 1-week terms, accounting for 62% and 21% 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 decreased as compared to the previous week. Specifically, the inter-bank interest rates for overnight, 1 week term and 1 month term were down by 0.07%, 0.03% and 0.12% percentage point to 0.69% p.a, 0.86% p.a and 1.66% p.a.
- For USD transactions: the average inter-bank interest rates for overnight, 1 week term were slightly up while the inter-bank interest rate for 1 month term was down as compared to the previous week. Specifically, the inter-bank interest rates for overnight, 1-week term increased by 0.02% and 0.01% percentage point respectively to 1.24% p.a and 1.31% p.a respectively, while the rates for 1-month term decreased by 0.11% percentage point, to 1.56% 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 |
0.69 |
0.86 |
0.91 |
1.66 |
3.33 |
4.64 |
- |
USD |
1.24 |
1.31 |
1.37 |
1.52 |
1.78 |
2.36 |
1.36 |
3. Forex market:
The buying and selling VND/USD exchange rate quoted by Vietcombank at the end of the first days of the week were stable at 22,680/22,750 VND/USD, then slightly fluctuated around 05 VND/USD per day, and on the final trading day of the week, the rate turned back to the price quoted at the beginning of the week (unchanged 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 Nguyen Giang