Weekly information on banking operations (March 12 - 16, 2018)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- VND mobilizing rates: The rates were commonly 0.6 – 1% p.a for demand and below 1-month terms, 4.3 – 5.5% p.a for 1 month to below 6 month terms, 5.3 – 6.5% p.a for 6 to below 12 month terms; and 6.5 – 7.3% 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 4.5 – 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 |
9.0 - 10.0 |
|
USD |
2.8 - 4.2 |
4.5 - 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 |
4.8 - 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 169,650 billion, an average of VND 33,930 billion/day, an increase of VND 1,042 billion/day compared with the week of March 05 - 09, 2018; while the USD amount was equivalent to VND 75,627 billion, an average of VND 15,125 billion/day, an increase of VND 753 billion/day compared to the previous week.
Most VND transactions were overnight and 1-week terms (accounting for 36% and 37% of the total amount of VND transactions respectively). Transactions in USD were mostly overnight and 1-week terms, accounting for 62% 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 decreased as compared to the previous week. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month term were down by 0.02%, 0.04% and 0.45% percentage point to 0.99% p.a, 1.08%p.a and 2.01% p.a.
- For USD transactions: The inter-bank interest rate for 1-week was slightly increased, while the inter-bank interest rate for 1-month was decreased as compared to the previous week. Specifically, the inter-bank interest rate for overnight was unchanged at 1.52% p.a; the interest rate for 1-week term was up by 0.02% percentage point to 1.63% p.a while the rate for 1-month term was down by 0.04% percentage point to 2.02% 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 |
0.99 |
1.08 |
1.34 |
2.01 |
2.82 |
4.21 |
- |
USD |
1.52 |
1.63 |
1.73 |
2.02 |
2.43 |
3.18 |
3.08 |
3. Forex market:
The buying and selling VND/USD exchange rate quoted by Vietcombank at first day of the week were 22,720/22,790 VND/USD and increased to 22,725/22,795 VND/USD by the last day of the 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 VA