Weekly Bulletin on Banking Operations (November 25-29, 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 during the first four days of the week, then decreased and were quoted at VND 23,125/23,245 against the USD on the last day of the week (down by VND/USD 15 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 – 0.8% p.a for demand and below 1-month term deposits, 4.3% p.a – 5.0% 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 289,511 billion, an average of VND 57,902 billion/day, a decrease of VND 2,043 billion/day as compared to the week of November 18-22, 2019; meanwhile the transaction amount in USD was equivalent to VND 166,951 billion, an average of VND 33,390 billion/day, an increase of VND 684 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 66% and 16% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 71% and 20% 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 terms. Specifically, the average inter-bank interest rates for overnight term, 1-week term and 1-month term increased by 1.18 percentage points p.a, 1.23 percentage points p.a and 1.33 percentage points p.a to 3.93% p.a, 4.11% p.a and 4.09% p.a respectively.
- For transactions in USD: The average inter-bank interest rates fluctuated slightly for most terms. Specifically, the average inter-bank interest rates for overnight term, 1-week and 1-month terms were 1.58% p.a, 1.61% p. and 2.29% 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 |
3.93 |
4.11 |
4.17 |
4.09 |
4.60 |
5.26 |
5.18 |
USD |
1.58 |
1.61 |
1.73 |
2.29 |
2.11 |
2.53 |
- |
Translated by Le Hang