Weekly Information on Banking Activities (May 14 – 18, 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: several commercial banks decreased the VND lending rates for short – terms by 0.5 - 1 percentage points p.a. For example, the Vietnam Joint-Stock Commercial Bank for Industry and Trade (VietinBank) and the Lien Viet Post Joint-Stock Commercial Bank (LienVietPostBank) reduced lending rate from 14.5 – 15% p.a to 14% p.a for agricultural and rural development and exporters; the Asia Commercial Joint-Stock Bank (ACB) cut down the lending rate from 18% p.a to 17% p.a for housing loans, production and business and consumers; the Bank for Investment and Development of Vietnam (BIDV) cut down the lending rate for medium and long terms to 14.4% p.a for the low – income housing projects. 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; 14-18% 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 14 - 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 111,129 billion and a USD amount equivalent to VND 65,460 billion , i.e. VND 22,226 and VND 13,092 billion per day averagely.
Most transactions were short terms, such as the overnight and 1 week terms with an amount of VND 89,508 billion, accounting for 81% of the total amount of VND transactions. Most transactions in USD were short term, reaching an amount equivalent to VND 51,479 billion, accounting for 79% 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 below 2 week, 1 month and 3 month terms were down by 1.21 to 1.72 percentage points p.a; the rates for 3 week, 6 month and 12 month decreased by 0.3-0.61 percentage points p.a; the rates for 2 month and over 12 month terms remarkably reduced by 3.04 and 3.50 percentage points p.a respectively. The rate for 9 month term was up by 1.02 percentage point p.a. The transactions for 6 month, 9 month and over 12 month terms were marginal.
For the rates in USD, the average interest rates for most terms were on a downward trend with a decrease of 0.06 (1 week term) to 0.94 percentage point p.a (3 month term). The rates for 6 month term increased by 1.39 percentage points p.a. The rate for 2 week term was unchaged at 0.94% p.a. There was no transaction for 9 month and over 12 month terms.
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 |
5.30 |
3.55 |
3.95 |
7.11 |
7.11 |
5.28 |
11.03 |
14.69 |
14.52 |
13.88 |
9.50 |
USD |
0.49 |
0.71 |
0.94 |
0.13 |
0.82 |
1.05 |
2.09 |
2.90 |
- |
4.80 |
- |
3.Exchange rate
The forex market showed positive movements with the exchange rate being stable. 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 20,820-20,870.
DH