Weekly information on banking activities (September 10-16, 2011)

1. Mobilizing and lending rates:

- The mobilizing rates were stable. The VND mobilizing rates were commonly 14% p.a. The USD mobilizing rates were 2% p.a for individualds and 0.5% p.a for economic institutions.

- The lending rates:

+ The VND lending rates continued to be stable. The VND lending rates were 17% - 19% p.a for agricultural and rural development and exporters, 18-21% p.a for other productive and business enterprises, and 22-25% p.a for the non-productive sector.

- The USD lending rates were commonly 6-7.5% p.a for short term and 7.5-8 % p.a for medium and long terms.

The specific lending rates were as follows:

2. Inter-bank transactions turnover:

According to the express reports of commercial banks by September 14, the total amount of transactions in the inter-bank market reached about VND 98,638 billion and USD 2,375 million, i.e. VND 19,728 billion and USD 475 million per day averagely. 

Most transactions in VND were short terms (Overnight and 1 week) accounting for 68% of the total amount of VND transactions; and most transactions in VND were overnight transactions, accounting for 48% of the total amount of USD transactions.

3. The average inter- bank interest rates:

The interest rates by September 14 were as follows:

For the rates in VND, the average inter-bank interest rates for short terms (Below 1 month and demand terms) were on a slight upward trend. The average rates for long terms (From 3 to 12 month terms) were on a downward trend with a decrease of 0.56 - 0.75 percentage points p.a.

The average overnight interest rate was 12.71% p.a, up by 0.01 percentage point as compared to the previous week. The rates for other terms ranged between 13%- 13.50% p.a (Excluding demand loans). The highest interest rate was 13.76% p.a for 1 month term.

For the rates in USD, the average interest rates in USD were on a downward trend for overnight, 2 week and 3 month terms with a decrease of 0.02 - 1.25 percentage points p.a. The average interest rates for 1 week and 1 month terms increased as compared to the previous week.

The average overnight rate was 0.72% p.a, down by 0.02 percentage point p.a as compared to the previous week. The rates for other terms ranged between 1.60% - 5% p.a

There were marginal transactions for 12 month term while no transaction for demand and 6 month terms was counted.

The average interest rates in the inter-bank market were as follows (% p.a.):

4. Exchange rate  

The foreign exchange market continued to show positive movements. The exchange rate in the market was stable, and the foreign exchange position of the banking sector continued to remain positive. Commercial banks continued to buy foreign currencies from their clients, and the foreign currency liquidity of the whole banking sector was improved. The exchange rate quoted by commercial banks was  20,830-20,834 VND/USD.

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