Weekly information on banking operations (October 23-27, 2017)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- VND mobilizing rates: The rates were commonly 0.8 - 1% p.a for demand and below 1-month terms, 4.5 - 5.4% p.a for 1 month to below 6 month terms, 5.4 - 6.5% p.a for 6 to below 12 month terms; and 6.4 – 7.2% p.a for 12 month plus term.
- USD mobilizing rates: The USD mobilizing rates were commonly 0% p.a for individuals and economic institutions.
1.2. Lending rates:
- VND lending rates: Currently, the average rates were commonly 6-6.5% p.a for short-term loans for priority fields, while state-owned commercial banks offerred rates of 9 – 10% p.a for medium and long-term loans for priority fields. The rates were commonly 6.8% - 9.0% p.a for short-terms, and 9.3% – 11.0% p.a for medium- and long-term ordinary loans. The lending rate for short-term loans was 4-5% p.a, applicable to those customers who have good loan-repayment track records, as well as transparent finances.
- USD lending rates were commonly 2.8% – 6.0% p.a. The rates were 2.8 – 4.7% p.a for short-term and 4.6 – 6.0% p.a for medium- and long-term loans.
The specific lending rates were as follows:
Groups 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 |
6.8-8.5 |
9.3-10.3 |
- VND applicable to loans for 5 priority sectors |
6.0-6.5 |
9.0-10.0 |
|
USD |
2.8-4.2 |
4.6-6.0 |
|
Group of joint stock commercial banks |
- VND applicable to ordinary loans |
7.8-9.0 |
10.0-11.0 |
- VND applicable to loans for 5 priority sectors |
6.5 |
10.0-10.5 |
|
USD |
4.0-4.7 |
5.0-6.0 |
2. Inter-bank transaction turnover:
2.1. Transactions:
According to reports from credit institutions and foreign bank branches, the total amount of transactions in the inter-bank market reached about VND 154,721 billion while the USD amount was equivalent to VND 72,149 billion.
Most VND transactions were overnight and 1-week terms (accounting for 38% and 34% of the total amount of VND transactions respectively). Transactions in USD were mostly overnight and 1-week terms, accounting for 62% and 19% of the total amount of USD transactions respectively.
2.2. The average inter-bank interest rates:
- For VND transactions: the average inter-bank interest rates for below 1 month terms decreased as compared to the previous week. Specifically, the inter-bank interest rates for overnight and 1 week term were down by 0.02% and 0.06% percentage point to 0.67% p.a, 0.80% p.a. The interbank interest rate for 1 month term was stable at 1.66% p.a.
- For USD transactions: As compared to the previous month, the average inter-bank interest rates were fluctuated at several key terms. Specifically, the average inter-bank interest rate for overnight term was steady at 1.24% p.a; the average inter-bank interest rate for 1 week-term slightly depreciated by 0.01% percentage point, to 1.30% p.a, while the rate for 1-month-term was up by 0.07% percentage point, to 1.59% p.a.
The specific average inter-bank interest rates were as follows:
Term |
Over night |
1 week |
2 weeks |
1 month |
3 months |
6 months |
9 months |
VND |
0.67 |
0.80 |
0.87 |
1.66 |
3.58 |
4.63 |
4.50 |
USD |
1.24 |
1.30 |
1.43 |
1.59 |
1.89 |
2.43 |
2.54 |
3. Forex market:
The buying and selling VND/USD exchange rate quoted by Vietcombank at the end of the 4 first days of the week were stable at 22,685/22,755 VND/USD, then slightly decreased to 22,680/22,750 VND/USD on the final trading day of the week (unchanged as compared to the final trading day of the previous week).
The SBV will continue to conduct synchronous measures and monetary policy to stabilize the forex market and exchange rate within the set band.
The State Bank of Vietnam
Translated by Nguyen Giang