Weekly Information on Banking activities (October 2nd- October 8th, 2008)

In response to the Government’s efforts to contain inflation and stabilize macro-economy, the SBV Governor issued Instruction No.05/2008/CT-NHNN on October 9th, 2008 on measures to ensure prudent and effective operations of credit institutions. Meanwhile, SBV continued to closely monitor the turmoil in the US and global financial and credit markets in order to proactively take measures in preventing possible risks.

-  The domestic monetary market remained stable. According to the express reports of credit institutions, as of October 7th, 2008, the average overnight rate in VND and the average term rates of 1 week, 2 weeks, and 6 months in the inter-bank market tended to increase; whereas the average term rates of 1 month and 3 months slightly decreased as compared to the previous week. The average term interest rate in USD was comparatively stable.

Specifically, following are the average rates in VND quoted in the inter-bank market: the overnight rate in VND is 14.50% p.a. and the  term rates of 1 week, 2 weeks, 1 month, 3 months, and 6 months are 15.50% p.a., 15.99% p.a., 16.54% p.a., 17.23% p.a., 18.25% p.a. respectively. There was no transaction quoted for 1 year term.

- Mobilizing rates of commercial banks  are commonly listed as below :

- Lending rates : (%/year)

 -  The exchange rate of USD/VND remained stable. Commercial banks quoted their exchange rates below the ceiling rate prescribed by SBV by 200 VND/USD. Differences between bid and offer prices ranged from 40 to 60 VND/USD. The rate was quoted at 16.580-16.640 VND/USD by commercial banks, and 16,600-16,620VND/USD in the parallel market.

                                                                                                                                 SBV

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