Weekly Information on Banking Activities (May 21-27, 2009)

The weekly information on b anking activities (May 21-27, 2009) is as follows:

1- The State Bank of Vietnam (SBV) announced several interest rates which are applicable from June 1st as follows:

- The base interest rate is 7% p.a,

- The refinancing interest rate is 7% p.a.,

- The rediscount rate is 5% p.a., and

- The overnight rate in the inter-bank electronic payment and the rate of loans to finance short balances in clearing transactions between SBV and commercial banks is 7% p.a.

2- The mobilizing rates in VND of several commercial joint – stock banks such as the Sai Gon Commercial Joint-Stock Bank, the Vietnam Technological and Commercial Joint-Stock Bank, the Vietnam Commercial Joint-Stock Bank for Private Enterprises, the An Binh Commercial Joint-Stock Bank increased by 0.2-0.5 percentage point

The mobilizing rates in USD quoted by the Military Commercial Joint-Stock Bank declined by 0.1-0.2 percentage point.

The average mobilizing rate was quoted on May 22, 2009 as follows:

The lending rates remained 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 terms were commonly quoted at 8.5% - 10% p.a, and 10%-10.5% p.a respectively. The group of joint stock commercial banks commonly offered their lending rates in VND from 10 % - 10.5% p.a. The lending rates after deducting the amount of interest rate subsidy were from 4.5% to 6% p.a. The lending rates in USD were from 6% to 7% p.a. The negotiable lending rates applicable for personal and credit card loans were commonly at 12% - 16.5% p.a.

3- According to the express reports of credit institutions, by May 26th, 2009, the average term interest rates in VND in the inter-bank market were on a slight downturn trend for 2 week and 6 month terms as compared to the previous week. The average interest rates for the other terms increased slightly. The highest and lowest increases for the 12 month  and 1 month term rates are 1.16 and 0.03 percentage points respectively.

The average term interest rates in USD in the inter-bank market were on  upward trend for short-terms (below 1 month) and on  downward trend for long-terms (from over 1 month). The highest average interest rate in USD was 1.68% p.a for 3 month term, the rates of other terms ranged between 0.5%-1.5% p.a.

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

4- During the week, the foreign currency supply and demand were improved, since the SBV took proper measures to stabilize the market. Commercial banks quoted the buying VND/USD exchange rate by 2-3VND/USD lower than the selling rate. Commercial banks commonly offered their selling VND/USD exchange rates at 17,782-17,786 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 leaders’ activities

- On May 25, Governor Nguyen Van Giau had a meeting with Mr. Peng Chun, Executive Director-cum- Vice President of the Bank of Communications of China. The same day, he met with Mr. Tien Lin, Chairman of the Taiwan Cooperative Bank.

- On May 26, Governor Nguyen Van Giau and members of the SBV Management Board had a meeting with Mr. Vu Huy Hoang, Minister of Industry and Trade (MOIT) and representatives from specialized MOIT departments.

- On May 29, Governor Nguyen Van Giau chaired the Conference on banking operations for the second half of 2009.

sbv

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