Weekly information on banking operations (February 5-9, 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 the 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 170,137 billion, an average of VND 42,534 billion per day, down by VND 826 billion/day as compared with the week of January 29-February 2, 2018; while the USD amount was equivalent to VND 97,312 billion, an average of VND 24,328 billion per day, up by VND 4,730 billion per day as compared to the previous week.
Most VND transactions were overnight and 1-week terms (accounting for 44% and 14% of the total amount of VND transactions respectively). Transactions in USD were mostly overnight and 2-week terms, accounting for 66% and 11% 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 most key terms were on an upward trend. Specifically, the inter-bank interest rate for overnight term increased by 1.2% p.a to 2.81% p.a. The inter-bank interest rates for 1-week to 3 week terms increased by 1.03%-1.78% p.a.
- For USD transactions: As compared to the previous week, the average inter-bank interest rates were up and down. Specifically, the inter-bank interest rate for overnight and 3 week terms decreased by 0.01 percentage point p.a and 0.14 percentatge point p.a respectively while the inter-bank interest rate for 1 week and 2 week terms increased by 0.02% and 0.05% 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 |
2.81 |
2.99 |
3.70 |
3.81 |
4.13 |
4.53 |
- |
USD |
1.53 |
1.69 |
1.76 |
210 |
2.41 |
2.71 |
- |
3. Forex market:
The buying and selling VND/USD exchange rate quoted by commercial banks were 22,660/22,730 VND/USD on February 9, 2018 (down by 15 VND/USD).
The SBV will continue to conduct synchronous measures and monetary policy to stabilize the forex market and exchange rate within the set band.
Translated by Le Hang