Weekly Information on Banking Activities (May 21 – 25, 2012)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- The VND mobilizing rates: the mobilizing rates were stable as compared to the previous week. The mobilizing rates were commonly 2.4-3% p.a for demand deposits and 3.5-4% for all the time deposits of less-than-one-month maturity, 11.5-12% p.a for over 1 month deposits.
- The USD mobilizing rates were commonly 2% p.a for individuals and 0.5-1% p.a for economic institutions.
1.1. Lending rates:
- The VND lending rates: The Joint-Stock Commercial Bank for Foreign Trade of Vietnam offerred a credit package of VND 2,000 billion for individual/ household business with the lowest interest rate of 13% p.a for loans covering the working capital shortage and 14% p.a for short-term home loans. Currently, the rates were commonly 13.5% - 15% p.a for agricultural and rural development, exporters and supporting industries, and 12% p.a applicable to enterprises purchasing rice for inventory; 14-17.5% p.a for other productive and business enterprises; and 16.5-20% p.a for the non-productive sector.
- The USD lending rates were commonly 5.5-7.5% p.a for short term and 7.5-9% p.a for medium and long terms.
The specific lending rates were as follows:
Group of commercial banks |
Currency |
Short term (% p.a.) |
Medium and long terms (% p.a.) |
Group of state- owned commercial banks |
-VND applicable to ordinary loans -VND applicable to loans for agricultural production and exporters |
- commonly at 14-16.5 - the lowest rate at 13 - Commonly at 13.5-15 - the lowest rate at 12 |
16-18 15.5-17 |
USD |
6.0-6.5 |
6.5-7.5 |
|
Group of joint-stock commercial banks |
-VND applicable to ordinary loans -VND applicable to loans for agricultural production and exporters |
- commonly at 15-17.5 - the lowest rate at 14.4 - commonly at 15 - the lowest rate at 13 |
17-19.5 17-19.5 |
USD |
5.5-7.5 |
7.5-9.0 |
2. Inter-bank operations:
2.1. Inter-bank transactions turnover:
According to the reports of commercial banks, the total amount of transactions in the inter-bank market reached about VND 117,360 billion and a USD amount equivalent to VND 56,361 billion , i.e. VND 23,472 and VND 11,272 billion per day averagely.
Most transactions were short terms, such as the overnight and 1 week terms with an amount of VND 86,071 billion, accounting for 73% of the total amount of VND transactions. Most transactions in USD were short term, reaching an amount equivalent to VND 40,889 billion, accounting for 73% of the total amount of USD transactions.
2.2. The average inter- bank interest rates:
For the rates in VND, the average inter-bank interest rates for most terms were on a downward trend, of which the rates for overnight to 2 week and 12 month terms were down from 0.15% p.a (for 1 week term) to 0.88% p.a (for 12 month term), by 2.39 percentage points p.a, 1.05 percentage points p.a, 3.02 percentage points p.a and 3.45 percentage points p.a for 3 week, 1 month, 3 month and 6 month terms respectively. The rate for 2 month term rose by 1.39 percentage points p.a. No transaction for 9 month and over 12 month terms was counted.
For the rates in USD, the average interest rates for 1 week, 2 week, 1 month and 12 month terms were on a slight downward trend with a decrease of 0.07 (1 week term) to 0.9 percentage point p.a (12 month term). The other rates increased by 0.03 percentage point p.a (6 month term) to 0.53 percentage point p.a (for 3 month term). No transaction for 9 month and over 12 month terms was counted.
The specific average inter-bank interest rates were as follows:
Term |
Overnight |
1 week |
2 weeks |
3 weeks |
1 month |
2 months |
3 months |
6 months |
9 months |
12 months |
Over 12 months |
VND |
4.90 |
3.40 |
3.72 |
4.72 |
6.06 |
6.67 |
8.01 |
11.24 |
- |
13.00 |
- |
USD |
0.64 |
0.64 |
0.83 |
0.66 |
0.72 |
1.44 |
2.27 |
2.93 |
- |
3.90 |
- |
3.Exchange rate
The forex market showed positive movements. The liquidity of the whole banking sector was improved. Credit institutions could continue to make net purchase of foreign currencies from their clients. The foreign exchange position of the whole banking sector was slightly positive. The VND/USD trading exchange rate quoted by commercial banks was around 20,830-20,870.
LVH