Weekly Bulletin on Banking Operations (October 28- November 1, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites were stable at VND 23,145/23,265 against the USD for the first three days of the week, then increased slightly to VND 23,150/23,270 against the USD on the next day; on the last day of the week, the rates decreased back down to be the same rates as quoted from the beginning of the week (unchanged as compared to the last day of the previous week, i.e. October 25, 2019).
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 – 7.0% 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 273,143 billion, an average of VND 54,629 billion/day, a decrease of VND 4,449 billion/day as compared to the week of October 21-25, 2019; meanwhile the transaction amount in USD was equivalent to VND 162,636 billion, an average of VND 32,527 billion/day, an increase of VND 3,161 billion/day as compared to the week of October 21-25, 2019.
Most VND transactions were for overnight and 1-week terms, accounting for 66% and 16% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 75% and 14% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For transactions in VND: As compared to the week of October 21-25, 2019, the average inter-bank interest rates slightly increased for most short-terms. Specifically, the average inter-bank interest rates for overnight term, 1-week term and 1-month term increased by 0.14 percentage points p.a, 0.26 percentage points p.a and 0.19 percentage points p.a to 1.82% p.a, 2.19% p.a and 2.7% p.a respectively.
- For transactions in USD: The average inter-bank interest rates slightly decreased for most short-terms, as compared to the week of October 21-25, 2019. Specifically, the average inter-bank interest rates for overnight term, 1-week term and 1-month term decreased by 0.04 percentage points p.a, 0.05 percentage points p.a and 0.06 percentage points p.a to 1.82% p.a, 1.92% p.a and 1.97% 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 |
1.82 |
2.19 |
2.21 |
2.70 |
4.45 |
4.71 |
4.65 |
USD |
1.82 |
1.92 |
1.86 |
1.97 |
2.44 |
2.70 |
2.51 |
Translated by VA