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

Weekly Information on Banking Activities (March 12 – 18, 2009) is as follows:

1. The State Bank of Vietnam (SBV) continued to flexibly and effectively conduct the monetary policy measures in order to stabilize the interest rate in line with the money market’s situation. The money market remained stable, the deposit outstanding of commercial banks at SBV met reserve requirements and liquidity.

2. The VND time-deposit interest rate slightly increased with a rise between 0.2%-0.3% p.a., while the mobilization interest rate in USD slightly reduced between 0.1%-0.2% p.a. in comparison with the previous week, the rates are quoted as follows:

- The lending rates in VND of the group of state-owned commercial banks remained unchanged in comparison with the previous week, commonly at 8.5%-10% p.a. for short-term loans 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 remained stable are commonly at 10% - 10.5% p.a.

3. According to the express reports of credit institutions, by March 17, 2009, the average term interest rates in VND in the inter-bank market were generally stable in comparison with the previous week. The average overnight rate, the rates of 1 week, 3 months slightly increased while the rates of 2 weeks, 1 month, and 6 months were on slight downward trend as compared to the previous week, particularly the 6 month term rate decreased by 0.39% p.a.

The average overnight rate was 6.6% p.a., the rates of other terms ranged between 7.3%-8.4% p.a.

The average interest rates in USD were on downward trend for almost terms, except 3-month term loans. In general, the interest rates in USD fluctuated between 0.6%-2% p.a. There was no transaction for 12 month loan.

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

4. During the week, commercial banks quoted the selling VND/USD exchange rate closely to the ceiling rate set by the SBV. Commercial banks commonly offered their selling VND/USD exchange rate at 17,483-17,487 VND/USD. The SBV closely watched the developments in the market, managed the exchange rate flexibly to control trade deficit and stabilize macro-economy.

On March 18, the SBV Governor issued Document No.1819/NHNN-QLNH on redressing operations of the foreign exchange trading market; from which SBV required those credit institutions with foreign exchange license are not permitted to use derivative operations for US dollar spot trading with the exchange rate higher than the trading band ceiling prescribed by SBV; and The Financial Supervision Agency should enhance supervision on the compliance with the foreign exchange trading regulations from March 18 and strictly deal with any offences.

5. SBV Management Board’s activities

- From March 16-19, the SBV Governor Nguyen Van Giau joined with the Government’s delegation to monitor the economic situation of several provinces.

- On March 16, SBV Deputy Governor Nguyen Toan Thang attended and opened the Vietnam On-line Payment Exhibition 2009 which, for the first time, was held by the State Bank of Vietnam (SBV) in coordination with the Ministry of Industry and Trade.

- On March 17, SBV Deputy Governor Nguyen Van Binh attended and spoke at the “Business Round Table with the Government of Vietnam 2009”.

- On March 19, Senior Deputy Governor Tran Minh Tuan presented license to the Bangkok Bank Hanoi Branch.

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