Weekly information on banking operations (January 22 – 26, 2018)
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, 4.3 – 5.5% p.a for 1 month to below 6 month terms, 5.3 – 6.5% p.a for 6 to below 12 month terms; and 6.5 – 7.3% 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 |
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 159,496 billion, an average of VND 39,874 billion/day, an increase of VND 7,542 billion/day compared with the week of January 15 - 19, 2018; while the USD amount was equivalent to VND 88,952 billion, an average of VND 22,238 billion/day, an increase of VND 5,928 billion/day compared to the previous week.
Most VND transactions were overnight and 1-week terms (accounting for 48% and 30% of the total amount of VND transactions respectively). Transactions in USD were mostly overnight and 1-week terms, accounting for 59% and 17% 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 decreased as compared to the previous week. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month term were down by 0.32%, 0.44% and 0.17% percentage point to 1.60% p.a, 1.81%p.a and 3.81% p.a.
- For USD transactions: The average inter-bank interest rates were deceased as compared to the previous week. Specifically, the inter-bank interest rates for overnight and 1-week term were down by 0.01% and 0.3% percentage point to 1.51% p.a, and 1.60% p.a; while the interest rates for 1-month term was fluctuated a little around 1.88% 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 |
1.60 |
1.81 |
2.12 |
3.81 |
4.87 |
4.90 |
- |
USD |
1.51 |
1.60 |
1.70 |
1.88 |
2.29 |
2.71 |
3.73 |
3. Forex market:
The buying and selling VND/USD exchange rate quoted by Vietcombank at first day of the week were 22,675/22,745 VND/USD (unchange 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 VA