Weekly Information on Banking Activities (February 26 – March 04)

The weekly information on banking activities from February 26 - March 04 is as follows:

1. 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 VND mobilizing interest rate slightly increased while the mobilization interest rate in USD offered by joint-stock commercial banks slightly reduced in comparison with the previous week, the rates are quoted as follows:

- The short-term lending rates in VND of the group of state-owned commercial banks are commonly at 8%-10% p.a. and at 10%-10.5% p.a for the medium and long-term loans in VND.

- The common 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 March 3, 2009, the average interest rates in VND of most terms in the inter-bank market tended to reduce slightly in almost terms within the range of below 0.5 percentage point p.a, of which the 3 month term rate increased to 8.55% p.a, higher by 0.29 percentage point p.a in comparison with the previous week.

The average interest rates in USD were on upward trend for short term loans including overnight, 2 weeks and 3 months; and were on slight downward trend for other terms. The largest decrease is 1.01 percentage point p.a.

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

4. During the week, commercial banks quoted the VND/USD exchange rate closely to the ceiling rate set by the SBV. Commercial banks commonly offered their selling VND/USD exchange rates at 17,479-17,481 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 and SBV Management, on February 27, had a working meeting with the CPV delegation of the Ministry of Justice to discuss the cooperation framework between the two institutions.

- Governor Nguyen Van Giau, on February 28, chaired a solemn ceremony held at the Head Office of the State Bank of Vietnam (SBV) to inaugurate the Second Phase of the World Bank-funded Inter-Bank Electronic Payment System. 

- Deputy Governor Nguyen Dong Tien, on March 3, attended the Government’s regular monthly press conference to review the Vietnamese socio-economic situation during February and the first two months of 2009.

- The Governor, on March 4, had a meeting with commercial banks in Vinh Phuc Province with the aim of monitoring the implementation of the interest rate support program in the province.

- Senior Deputy Governor Tran Minh Tuan and Deputy Governor Nguyen Dong Tien, on March 5, attended a meeting to celebrate the Women’s Day.

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