Weekly Bulletin on Banking Operations (September 23-27, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were VND 23,145/23,265 against the USD at the beginning of the week; then decreased to VND 23,140/23,260 against the USD, and remained stable at this level until the end of the week (down by 10 VND per USD for both buying and selling exchange rates as compared to the last day of the previous week).
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were between 0.2% p.a – 1% p.a for demand and below 1-month term deposits, 4.5% p.a – 5.5% p.a for 1-month to below 6-month terms, 5.5% p.a – 6.8% p.a for 6-month to below 12-month terms, and 6.6% – 7.5% p.a for 12-month plus terms.
- The mobilization interest rates in USD: The common mobilization interest rate in USD was 0% p.a for both individuals’ and institutions’ deposits.
2.2. Lending rates:
- The lending interest rates in VND: The common average rates were between 6.0% – 9.0% p.a for short-term loans; 9.0% p.a – 11.0% p.a for medium and long-term loans.
- The lending interest rates in USD: The common rates were between 3.0% – 6.0% p.a. The rates were 3.0% p.a – 4.7% p.a for short-term loans and 4.5% – 6.0% p.a for medium and long-term loans.
3. Inter-bank transaction operations:
3.1. Transactions:
According to the reports submitted by the credit institutions and the foreign bank branches, the total amount of transactions in the inter-bank market within the week reached approximately VND 292,512 billion, an average of VND 58,502 billion/day, a decrease of VND 8,962 billion/day as compared to the week of September 16-20, 2019; meanwhile the transaction amount in USD was equivalent to VND 166,765 billion, an average of VND 33,353 billion/day, an increase of VND 2,930 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 60% and 17% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 63% and 19% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For transactions in VND: As compared to the previous week, the average inter-bank interest rates decreased for most short-terms and increased for long-terms. Specifically, the average inter-bank interest rates for overnight and 1-week terms decreased by 0.32 percentage points p.a and 0.18 percentage points p.a to 2.06% p.a and 2.43% p.a. The average inter-bank interest rate for 1-month term slightly increased by 0.04 percentage points p.a to 3.29% p.a.
- For transactions in USD: The average inter-bank interest rates were on a slight downward trend. Specifically, the average inter-bank interest rates for 1-week and 1-month terms decreased by 0.12 percentage points p.a, 0.13 percentage points p.a and 0.03 percentage points p.a to 1.94% p.a, 2.06% p.a and 2.23% p.a respectively.
The specific average inter-bank interest rates were as follows:
Term |
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
VND |
2.06 |
2.43 |
2.72 |
3.29 |
4.36 |
4.81 |
3.87 |
USD |
1.94 |
2.06 |
2.09 |
2.23 |
2.59 |
2.91 |
2.11 |
Translated by Le Hang