|
WEEKLY INFORMATION ON BANKING ACTIVITIES (November 6 – 12, 2008)
1. Last week, the domestic money market remained stable. The lending rates of commercial banks are as follows:
+ VND lending rates of the state-owned commercial banks are commonly offered at 16.5–17.5% p.a; the Vietnam Bank for Agriculture & Rural Development (VBARD) quotes the rate of 14.4%-15% p.a for production households in the rural areas and small & medium enterprises (SMEs) respectively. This is the second consecutive cut of the lending rates by VBARD after the decision of the State Bank of Vietnam (SBV) on the reduction of the prime interest rate to 12% p.a. The lending rates of joint stock commercial banks stay at around 18% p.a.
+ The Bank for Investment & Development of Vietnam (BIDV) cut the VND and USD lending rates down by 1% and 0.5% respectively as of November 17. Accordingly, the maximum short term lending rate in VND is 15% p.a. The rate applicable to SMEs with stable sales, and businesses operating in energy, gasoline, steel, cement, fertilizer, medicine, rice and export is 14% p.a as maximum. The maximum medium and long term rate is 15.8% p.a. The USD lending rates with maturity below 3 months and 3 – 6 months are 5% and 5.5% p.a respectively.
+ USD lending rates of the state-owned commercial and joint-stock commercial banks are commonly at 7.8%-8.12% p.a and 8.88%-9.57% p.a respectively.
- The mobilizing rates of commercial banks are as follows:
+ Many commercial banks reduced the average term rates in VND by 1.5% - 2% p.a
+ The USD mobilizing rates of commercial banks were stable.
- The VND and USD mobilizing rates of credit institutions are listed below:
|
|
Currency |
Demand
(%p.a) |
3 months
(%p.a) |
6 months
(%p.a) |
12 months
(%p.a) |
|
Group of state-owned commercial banks |
VND |
3.48 |
14.19 |
14.45 |
14.36 |
|
USD |
1.31 |
3.76 |
4.46 |
5.04 |
|
Group of joint-stock commercial banks |
VND |
3.55 |
15.22 |
14.76 |
13.71 |
|
USD |
1.58 |
5.57 |
5.69 |
5.72 |
2. According to the express reports of credit institutions, by November 12, the average term interest rates in VND in the inter-bank market continued to be on downward trend as compared to the previous week. The average term interest rates in USD are relatively steady. Specifically, the average overnight rate is 9.51% p.a., the rates of 1 week, 2 weeks, 1 month, 3 months, 1 year are 10.97% p.a, 11.77% p.a, 12.34% p.a, 14.33% p.a, 13.26% p.a respectively.
3. After the application of new trading band of USD/VND exchange rate (± 3%) as of November 7, domestic commercial banks have quoted the exchange rate lower than the ceiling rate set by the SBV, commonly at 16,940 – 16,980. Currently, the SBV is closely monitoring the development to ensure the stabilization of foreign currency supply and demand.
4. Activities of SBV leaders
- Under the assignment of the Prime Minister, the SBV Governor attended the Question and Answer (Q and A) Panel at the 4th Session of 12th National Assembly (NA) of the Socialist Republic of Vietnam on November 12. He directly addressed issues raised by 7 NA Deputies. He was appreciated to stick to the issues and provide NA a lot of valuable information on the banking sector.
- Deputy Governor Nguyen Dong Tien of the SBV had an interview for Nippon Hoso Kyokai (Japan) on the SBV monetary policy management on November 6.
SBV
|
