Weekly Information on Banking Activities (March 26 – April 1, 2009)

The weekly Information on Banking Activities (March 26 – April 1, 2009) is as follows:

1. The State Bank of Vietnam (SBV) continued to provide detailed guidelines on  implementing interest rate support mechanism; while enhancing supervision of implementing Decision No.131 of the Prime Minister on assisting and supporting the business and productive corporate and individual borrowers in terms of interest rates, Circular No.02/2009/TT-NHNN and Circular No.04/2009/TT-NHNN of the SBV on detailed regulations for implementing Decision No.131; continuing to flexibly conduct the monetary policy measures in order to stabilize banking operations.

2. Mobilizing rate slightly changed. Specifically, The VND mobilizing interest rate slightly increased by 0.1%-0.3% p.a; the mobilization interest rate in USD for demand and terms of below 12 months reduced by 0.1%-0.2% p.a, while the rate for the terms of above 12 months increased by 0.1%-0.3% p.a. The rates are quoted as follows:

- The lending rates were more stable as compared to the previous week. The lending rates in VND of the group of state-owned commercial banks for short-term, and medium and long term were commonly quoted at 8.5% - 10%, and 10%-10.5% p.a respectively. The common lending rates in VND of the group of joint-stock commercial banks were 10% - 10.5% p.a. The lending rates in USD were offered at 6%-7% p.a.

3. According to the express reports of credit institutions, by March 31, 2009, the average term interest rates in VND in the inter-bank market were on downward trend, especially for the short terms (overnight, 1 week, and 2 weeks); excluding the rate of 1 month remained unchanged and the 3 month term rate slightly increased by 0.26% p.a as compared to the previous week. The average overnight rate was 6.34% p.a., the rates of other terms ranged between 6.5%-8.5% p.a.

The average interest rates in USD were on upward trend for almost terms, except 6-month term loans (a decline by 0.25% p.a. in comparision with the previous week). The highest average interest rate in USD were 2.33% p.a (6 month term), the rates of other terms ranged between 0.5%-2.3% p.a.

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

4. During the week, commercial banks quoted the selling USD/VND exchange rate very closely to the ceiling rate set by the SBV. Commercial banks commonly offered their selling USD/VND exchange rate at 17,790-17,811 USD/VND. However, the buying USD/VND exchange rate was commonly quoted at 17,620-17,720 USD/VND. The SBV closely watched the developments in the market, managed the exchange rate flexibly to stabilize macro-economy.

5. SBV Management Board’s activities

- On March 26, Governor Nguyen Van Giau of the State Bank of Vietnam (SBV) had a meeting with Mr Thng Tien Tan, First Vice Chairman and General Director of the United Overseas Bank Group (UOB) of Singapore.

- On March 29, Governor Nguyen Van Giau of the State Bank of Vietnam (SBV) had a meeting with the leaders and representative of People Committee, agencies and the SBV branch, and commercial banks in Yen Bai province to review the results and implementaion of Dicision No 131/QĐ – TTg of the Prime Minister and Circular No.02/2009/TT-NHNN on interest rate support lending program. 

- April 02, SBV Governor Nguyen Van Giau examined the implementation of Decision No. 131/2009/QD-TTg of the Prime Minister and Circular No.02/2009/TT-NHNN of the SBV Governor in VPBank and Southeast Asia joint-stock commercial bank (SeaBank).

- On April 2, SBV Governor Nguyen Van Giau attended the Second Workshop on “Project Finance and Investment Opportunities in Cambodia, Laos, Myanmar and Vietnam”.

- On March 31, Deputy Governor Nguyen Van Binh announced 6 new departmental appointments of the SBV. 

sbv

>   SBV announces regulations on foreign currency reserve requirement interest rate (04/04/2009)

>   Disbursement of the interest rate support program to April 3, 2009 (04/04/2009)

>   Second Workshop on “Project Finance and Investment Opportunities in Cambodia, Laos, Myanmar and Vietnam” (04/04/2009)

>   Vietinbank appointed as service bank for loan of “Poverty Reduction Support V” (04/04/2009)

>   Dollar price down, supply-demand in balance again (04/04/2009)

>   Gold prices plummet (04/04/2009)

>   Tin Nghia and ANZ bank allowed provide forex services (04/04/2009)

>   Vietinbank allowed to do factoring (04/04/2009)

>   VDB’s credit guarantee program inaccessible to many businesses (02/04/2009)

>   Online securities transactions regulated (02/04/2009)