Weekly information on banking operations (March 26-30, 2018)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- VND mobilizing rates: The rates were commonly 0.6 – 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 4.5 – 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 |
4.5 - 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 |
4.8 - 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 176,753 billion, an average of VND 35,351 billion/day, an increase of VND 4,069 billion/day compared with the week of March 19-23, 2018; while the USD amount was equivalent to VND 89,953 billion, an average of VND 17,991 billion/day, an increase of VND 2,074 billion/day compared to the previous week.
Most VND transactions were overnight and 1-week terms (accounting for 47% and 26% of the total amount of VND transactions respectively). Transactions in USD were mostly overnight and 1-week terms, accounting for 69% and 21% 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 were on upward and downward trend. Specifically, the inter-bank interest rates for overnight, 1-week terms were down by 0.08% and 0.02% percentage point to 0.73% p.a and 0.96% p.a respectively; while the inter-bank interest rate for 01 month term increased by 0.06 percentage point p.a to 1.97% p.a.
- For USD transactions: The average inter-bank interest rates increased as compared to the previous week. Specifically, the inter-bank interest rates for overnight, 1-week and 1-month term were up by 0.16%, 0.12% and 0.14% percentage point to 1.76% p.a, 1.87% p.a and 2.19% p.a, respectively.
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 |
0.73 |
0.96 |
1.13 |
1.97 |
2.81 |
5.64 |
- |
USD |
1.76 |
1.87 |
1.97 |
2.19 |
2.57 |
3.24 |
3.91 |
3. Forex market:
The buying and selling VND/USD exchange rates quoted by commercial banks were up on the first days of the week, then down on the following days. As compared to the final day of the previous week (March 23, 2018), the exchange rates on March 28, 2018 were 22,780/22,850 VND/USD (up by 20 VND/USD); however, on March 30, 2018, the exchange rate was 22,750/22,820 VND/USD (down by 10 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