Weekly Information on Banking Activities (January 8 – January 14)

The weekly information on banking activities (January 8 – January 14) is as follows:

 1. Last week, the money market remained stable. The deposit balance of credit institutions at the State Bank of Vietnam (SBV) was able to  meet reserve requirements and ensure thier solvency capacity. The SBV continued to closely watch the market, focused on vault safety to timely and sufficiently provide cash in circulation and ensure banknote structure, especially banknotes of small denominations.

2. The mobilizing and lending rates in VND and USD of commercial banks reduced by 0.2%-1%. The current mobilizing rates are quoted as follows:

- The common lending rates in VND of the group of state-owned commercial banks and the group of joint-stock commercial banks ranged from 8.5% to 11% p.a and from 12% to 12.6% p.a respectively.

3. According to the express reports of credit institutions, by January 13, 2009 the average interest rates in VND of most terms in the inter-bank market tended to decrease, of which the rate of 6 month term declined remarkably, excluding the rate of 12 month term which slightly increased as compared to the previous week. Specifically, the average overnight rate in VND is 5.00% p.a. and the average term rates of 1 week, 2 weeks, 1 month, 3 months, 6 months and 1 year are 6.00% p.a, 6.22% p.a, 7.37% p.a, 8.19% p.a, 9.97% p.a and 8.34% p.a respectively.

The average interest rates in USD in the inter-bank market were on upward trend, of which the average overnight rate and term rate of 1 week reduced slightly as compared to the previous week. The  USD interest rates are commonly below 2% p.a, the overnight rate is 0.54% p.a, the rates of up to 1 week ranged from 1.18% p.a to 2.06% p.a.

4. The USD/VND exchange rate of commercial banks is respectively stable, commonly at 17,475-17,484 VND/USD. The SBV continued to closely watch the developments in the market, manage the exchange rate flexibly to control trade deficit and stabilize macro-economy.

5. SBV Management Board’s activities

- The SBV Governor attended and spoke at the conference on banking activities in 2009 of the Vietnam Bank for Industry and Trade (Vietinbank) in Hanoi, on January 11, 2009.

- SBV Governor Nguyen Van Giau met with former SBV leaders on January 14, 2009.

- Deputy Governor Tran Minh Tuan of the SBV joined the ceremony of launching operations of the Bao Viet Joint-Stock Commercial Bank (BVB) on January 9, 2009.

- Deputy Governor Nguyen Dong Tien of the SBV chaired the conference on the year end SBV Website perfomance of 2008 on January 9, 2009.

- Deputy Governor Dang Thanh Binh of the SBV attended and spoke at the conference on banking activities in 2009 and receiving Labour Order of 3^rd class and Government’s Certificate of Merit of SBV branch in Hai Duong province on January 13, 2009.

 - Deputy Governor Nguyen Dong Tien of the SBV attended and spoke at the conference on banking activities of the SBV branches in Bac Kan and Phu Tho province on January 14 -15, 2009.

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