Weekly Bulletin on Banking Operations (August 19-23, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were relatively stable during the first four days of the week, basically remained at VND 23,145/23,265 against the USD; then slightly decreased and were quoted at VND 23,140/23,260 against the USD on the last day of the week (down by 10 VND per USD for both buying and selling exchange rates as compared to the last day of the previous week).
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were between 0.2% p.a – 1% p.a for demand and below 1-month term deposits, 4.5% p.a – 5.5% p.a for 1-month to below 6-month terms, 5.5% p.a – 6.8% p.a for 6-month to below 12-month terms; and 6.6% – 7.5% p.a for 12-month plus terms.
- The mobilization interest rates in USD: The common mobilization interest rate in USD was 0% p.a for both individuals’ and institutions’ deposits.
2.2. Lending rates:
- The lending interest rates in VND: The common average rates were between 6.0 – 9.0% p.a for short-term loans; 9.0% p.a – 11.0% p.a for medium and long-term loans.
- The lending interest rates in USD: The common rates were between 2.8% – 6.0% p.a. The rates were 2.8% p.a – 4.7% p.a for short-term loans and 4.5 – 6.0% p.a for medium and long-term loans.
3. Inter-bank transaction operations:
3.1. Transactions:
According to the reports submitted by the credit institutions and the foreign bank branches, the total amount of transactions in the inter-bank market within the week reached approximately VND 355,030 billion, an average of VND 71,006 billion/day, an increase of VND 145 billion/day as compared to the week of August 12-16, 2019; meanwhile the transaction amount in USD was equivalent to VND 126,833 billion, an average of VND 25,367 billion/day, an increase of VND 1,525 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 67% and 16% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 67% and 15% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For transactions in VND: As compared to the previous week, the average inter-bank interest rates increased for most short-terms, except for 1-month term. Specifically, the average inter-bank interest rates for overnight and 1-week terms rose by 0.11 percentage points p.a, 0.07 percentage points p.a to 3.11% p.a and 3.13% p.a respectively. The average inter-bank interest rate for 1-month term declined by 0.05 percentage points p.a to 3.32% p.a.
- For transactions in USD: The average inter-bank interest rates were on a slight downward trend for most terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were down by 0.08 percentage points p.a, 0.05 percentage points p.a and 0.05 percentage points p.a to 2.10% p.a, 2.20% p.a and 2.41% p.a respectively
The specific average inter-bank interest rates were as follows:
Term |
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
VND |
3.11 |
3.13 |
3.19 |
3.32 |
4.19 |
5.22 |
- |
USD |
2.10 |
2.20 |
2.16 |
2.41 |
2.62 |
2.49 |
3.22 |
Translated by Le Hang