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Weekly information on banking activities (Nov. 20 – Nov. 26, 2008)
The State Bank of Vietnam (SBV) has summarized weekly information on banking activities (Nov. 20 – Nov. 26, 2008) as follows:
1. Monetary market development
The monetary market was stable. Following the announcement of the decisions of the State Bank of Vietnam (SBV) in cutting down VND-dominated base interest rate and reserve requirement level in VND applicable to credit institutions, many commercial banks started without delay to further reduce their mobilizing and lending rates.
Specially, many commercial banks cut down their VND lending rates by 1.5% p.a. to 2.3% p.a. in comparison with the previous week. Recently, the state - owned commercial banks (SOCBs) quoted their common average term lending rates in VND between 14.1 % p.a. and 14.7% p.a., while join-stock commercial banks (JSCBs) applied the rates from 16.4% p.a. to 16.5% p.a.. The USD lending rates were offered between 6.8% p.a. and 7.5% p.a by SOCBs; and from 8.5% p.a. to 9.1% p.a. by JSCBs. Many commercial banks offered preferential lending rates, which were 3.5% p.a. to 4.5% p.a. lower than the maximum lending rate, to customers in such priority areas as agriculture and rural development, exports and small and medium enterprises (SMEs).
Many commercial banks reduced their mobilizing rates of all deposit terms by 1% p.a. to 2% p.a. in comparison to the previous week. Mobilizing rates of commercial banks are commonly listed as below : (% per year)
|
|
Currency |
Demand |
3 months |
6 months |
12 months |
|
Group of state-owned commercial banks |
VND |
3,0 |
10,7 |
10,6 |
11,4 |
|
USD |
1,25 |
3,01 |
3,58 |
4,18 |
|
Group of joint-stock commercial banks |
VND |
3,52 |
13,43 |
13,59 |
12,57 |
|
USD |
1,54 |
5,44 |
5,45 |
5,53 |
2. Commercial banks quoted their exchange rates close to the ceiling rate set by SBV. The USD/VND in the parallel market was in the downward trend, ranging from 17,180 to 17,230 VND/USD. SBV continued to closely monitor the forex market in order to ensure stable macro-economic growth while putting trade deficit under control.
3. According to the express reports of credit institutions, by November 25th, 2008, the average interest rates in VND of most terms in the inter-bank market tended to decrease as compared to the previous week. Specifically, the average overnight rate in VND is 7.70% p.a. and the average term rates of 1 week, 2 weeks, 1 month, 3 months, 6 months, and 1 year are 8.55% p.a., 9.24% p.a., 10.70% p.a., 12.94% p.a., 11.25% p.a. and 12.30% p.a. respectively.
The average interest rates in USD in the inter-bank market was commonly below 3% p.a, of which the overnight rate was 0.84% p.a., the rates of different terms from 1 week and over ranged from 2.06% p.a. to 2.65% p.a..
4. SBV’s guidelines and other activities
- On Nov. 27, the SBV Governor signed Document No. 10447/NHNN-TT to announce that he has not yet approved the proposal on ATM fee collection as raised by the Bank Card Association.
- On Nov. 26, the SBV Governor had a meeting with the Canadian Ambassador to Vietnam – Ms. Deanna Horton together with the other Canadian guests as Mr. Michael Brownell, Projects Director in Vietnam of the Canadian International Development Agency (CIDA), and Mr. Pierre Seguin, Resident Project Manager of CIDA/SBV Banking Reform Project in Vietnam.
- On Nov. 24, a meeting was held at the head office of SBV in Hanoi to launch the Eighth Poverty Reduction Support Credit (PRSC 8) under the co-chairs of Mr. Nguyen Van Binh, SBV Deputy Governor-cum-First Vice Chairman of the PRSC Steering Committee, and Mr. Martin Rama, Acting Country Director of the World Bank (WB) in Vietnam.
- On Nov. 20, Deputy Governor Nguyen Van Binh had a meeting with the delegation of Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH (German Society for Technical Cooperation) led by Ms.Cornelia Richter, Director General of Planning and Development of GTZ.
SBV
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