Weekly Bulletin on Banking Operations (September 30 – October 4, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were VND 23,150/23,270 against the USD during the first two days of the week; then decreased to VND 23,140/23,260 against the USD, and remained stable at this level within the last three days of the week (unchanged 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 3.0% – 6.0% p.a. The rates were 3.0% 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 285,384 billion, an average of VND 57,077 billion/day, a decrease of VND 1,426 billion/day as compared to the week of September 23-27, 2019; meanwhile the transaction amount in USD was equivalent to VND 137,945 billion, an average of VND 27,589 billion/day, a decrease of VND 5,764 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 68% and 16% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 73% and 13% 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 decreased for most terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms decreased by 0.04 percentage points p.a, 0.02 percentage points p.a and 0.21 percentage points p.a to 2.02% p.a, 2.41% p.a and 3.08% p.a respectively.
- For transactions in USD: The average inter-bank interest rates fluctuated slightly around the rates of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-month terms decreased by 0.01 percentage point p.a and 0.13 percentage points p.a to 1.93% p.a and 2.1% p.a respectively; meanwhile the average inter-bank interest rate for 1-week term increased by 0.02 percentage points p.a to 2.08% p.a.
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 |
2.02 |
2.41 |
2.66 |
3.08 |
4.20 |
4.83 |
- |
USD |
1.93 |
2.08 |
2.06 |
2.10 |
2.54 |
2.99 |
- |
Translated by Le Hang