Weekly Bulletin on Banking Operations (November 11-15, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were stable at VND 23,140/23,260 against the USD from the beginning to the last day of the week (unchanged for both buying and selling exchange rates as compared to the last day of the previous week). The SBV continues to be ready to carry out synchronous measures and monetary policy instruments to stabilize the foreign exchange market and the exchange rate within the permitted band.
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 – 7.0% 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 248,587 billion, an average of VND 49,717 billion/day, a decrease of VND 5,214 billion/day as compared to the week of November 4-8, 2019; meanwhile the transaction amount in USD was equivalent to VND 138,049 billion, an average of VND 27,610 billion/day, a decrease of VND 602 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 59% and 21% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 74% and 16% 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 slightly decreased for most terms. Specifically, the average inter-bank interest rates for overnight term, 1-week term and 1-month term decreased by 0.17 percentage points p.a, 0.11 percentage points p.a and 0.16 percentage points p.a to 1.9% p.a, 2.16% p.a and 2.58% p.a respectively.
- 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 for overnight term, 1-week term and 1-month term decreased by 0.06 percentage points p.a, 0.05 percentage points p.a and 0.16 percentage points p.a to 1.6% p.a, 1.66% p.a and 1.89% 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 |
1.90 |
2.16 |
2.41 |
2.58 |
4.50 |
5.29 |
5.79 |
USD |
1.60 |
1.66 |
1.76 |
1.89 |
2.09 |
2.72 |
- |
Translated by VA