Weekly Bulletin on Banking Operations (August 26-30, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites increased slightly from VND 23,140/23,260 against the USD to VND 23,145/23,265 against the USD on the first two days of the week; then slightly decreased by 5-10 VND/USD for each day and were quoted at VND 23,130/23,250 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 275,436 billion, an average of VND 55,087 billion/day, a decrease of VND 15,919 billion/day as compared to the week of August 19-23, 2019; meanwhile the transaction amount in USD was equivalent to VND 156,562 billion, an average of VND 31,312 billion/day, an increase of VND 5,946 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 65% and 22% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 64% and 26% 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. Specifically, the average inter-bank interest rates for overnight,1-week, 1-month terms rose by 1.31 percentage points p.a, 1.47 percentage points p.a and 1.38 percentage points p.a to 4.42% p.a, 4.6% p.a and 4.7% p.a respectively.
- For transactions in USD: The average inter-bank interest rates were on a slight downward trend for all short-terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were down by 0.01 percentage point p.a, 0.10 percentage points p.a and 0.21 percentage points p.a to 2.09% p.a, 2.10% p.a and 2.20% 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 |
4.42 |
4.60 |
4.75 |
4.70 |
4.65 |
5.88 |
6.17 |
USD |
2.09 |
2.10 |
1.76 |
2.20 |
2.86 |
2.81 |
3.28 |
Translated by Le Hang