Weekly Bulletin on Banking Operations (August 31-September 4, 2020)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the website of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) (at the end of the days) were stable throughout the week at VND 23,090/23,270 per USD, unchanged as compared to the rates quoted on the last day of the previous week (August 28, 2020).
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were on a downward trend, standing at 0.1% p.a – 0.2% p.a for demand and below 1-month term deposits, 3.7% p.a – 4.1% p.a for 1-month to below 6-month terms, 4.4% p.a – 6.4% p.a for 6-month to below 12-month terms, and 6.0% p.a – 7.1% 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 on a downward trend. The cap for VND lending rate for short-term loans of 5.0% p.a continued to be applied to a number of sectors and fields.
- The lending interest rates in USD: The common rates were between 3.0% p.a – 6.0% p.a. The rates were 3.0% p.a – 4.5% p.a for short-term loans, and 4.2% p.a – 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 288,354 billion, an average of VND 57,671 billion per day, a decrease of VND 16,950 billion per day as compared to the previous week (August 24-28, 2020); meanwhile the transaction amount in USD was equivalent to VND 119,949 billion, an average of VND 23,990 billion per day, a decrease of VND 5,905 billion per day as compared to the previous week.
Most VND transactions were for overnight term and 1-week term, accounting for 70% and 15% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight term and 1-week term, accounting for 69% and 24% of the total amount of USD transactions respectively.
3.2. Average inter-bank interest rates:
- For transactions in VND: The average inter-bank interest rates decreased for most terms as compared to the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were 0.16% p.a, 0.27% p.a and 0.47% p.a respectively.
- For transactions in USD: The average inter-bank interest rates decreased for most terms as compared to the previous week, except for the inter-bank interest rate for 1-month term increased as compared to the previous week. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms were 0.11% p.a, 0.12% p.a and 0.94% p.a respectively.
The specific average inter-bank interest rates were as follows:
Unit: % p.a
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
|
VND |
0.16 |
0.27 |
0.37 |
0.47 |
2.22 |
3.37 |
3.45 |
USD |
0.11 |
0.12 |
0.13 |
0.94 |
0.40 |
1.44 |
- |
Translated by VA