Weekly Information on Banking Activities (February 12 – 18, 2009)

The weekly information on banking activities from February 12 to 18, 2009 is as follows:

1. During the week, the money market remained stable and the deposit balance of credit institutions at the State Bank of Vietnam (SBV) was able to meet reserve requirements and ensure their solvency

2. The mobilizing and lending rates in VND and USD offered by commercial banks slightly changed in comparison with the previous week, the rates are quoted as follows:

- The common lending rates in VND of the group of state-owned commercial banks for short-term and medium and long term ranged from 8.5% - 10% p.a and 10% - 10.5% p.a respectively.

- The lending rates in VND of the group of joint-stock commercial banks are commonly at 10%-10.5% p.a. 

3. According to the express reports of credit institutions, by February 17, 2009, the average interest rates in VND of most terms in the inter-bank market tended to increase slightly (below 0.1% p.a), particularly the 1 month term rate remarkably increased by 0.85% p.a. The maximum average interest rate of 12 month term was 8.17% p.a

 The average interest rates in USD were on upward trend for short term loans including overnight, 2 weeks and 1 month; and were on slight downward trend for other terms. The interest rates in USD were commonly below 2.1% p.a.

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

4. The VND/USD exchange rate of commercial banks was relatively stable, commonly at 17,487-17,490 VND/USD. The SBV closely watched the developments in the market, managed the exchange rate flexibly to control trade deficit and stabilize macro-economy.

5. SBV Management Board’s activities

- Governor Nguyen Van Giau, Deputy Governor Nguyen Dong Tien and representatives of SBV Departments, on February 13, 2009 met with the Maritime Joint-Stock Commercial Bank and the Vietnam Technological and Commercial Joint Stock Bank (Techcombank) in order to review the implementation of Decision No.131 of the Prime Minister.

- Governor Nguyen Van Giau, on February 16, 2009 met with Mr. James Adams, Vice President of the World Bank (WB), Mr. Martin Rama, WB’s Acting Country Director in Vietnam, and the incoming Country Director of WB in Vietnam, Ms. Victoria Kwakwa.

-Governor Nguyen Van Giau, on February 17, had a meeting with Mr. Tetsuya Wada, Acting Director for Pacific Asia of the Bank of Tokyo - Misubishi UFJ (Japan) and Mr. Julius Chen, Chairman of the Board of Directors of the Chang Hwa Bank (Taipei China).

- Governor Nguyen Van Giau, on February 18, had meetings with the Sai Gon–Hanoi Joint–Stock Commercial Bank (SHB) and ANZ Bank (Vietnam) in order to review the implementation of Decision No.131 of the Prime Minister.

- Deputy Governor Nguyen Dong Tien, on February 18, attended and spoke at the conference on money market operations.

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