Weekly Information on Banking Activities (June 18- 24, 2009)

The weekly information on banking activities (June 18- 24, 2009) as follows:

1. During the week, several joint – stock commercial banks namely the Sai Gon Industry and Trade Bank, the Southeast Asia Joint-Stock Commercial Bank, and the VID Public Bank increased mobilizing rates by 0.1-0.3 percentage point p.a.

The mobilizing rates in USD of the Southeast Asia Joint – Stock Commercial Bank decreased by 0.1-0.2 percentage point p.a.

The average mobilizing rates were quoted as follows:

2. The lending rates remained stable as compared to the previous week. The lending rates in VND of the group of the state-owned commercial banks for short, 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 decreased by 0.3-0.5 percentage point and were recently quoted at 4%-6% 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, the average interest rates in VND in the inter-bank market were on a downward trend for most terms, excluding the 6 months term which increased by 0.6 percentage point p.a. as compared to the previous week. The largest decrease was 0.28 percentage point for the 1 week term, and the least decrease was 0.04 percentage point  for and 3 months term. The average overnight rate was 5.44% p.a., a decrease of  0.1 percentage point as compared to the previous week. The rates of other terms ranged between 6.3% to 8.6% p.a.

The average interest rates in USD in the inter-bank market were on a slight downward trend for most terms, of which the decreases ranged from 0.02 to 0.3 percentage point p.a.. The highest average interest rate in USD was 1.31% p.a for 3 months term, and the rates of other terms ranged between 0.4%-1.1% p.a. There were no transactions for 6 month and 12 month loans.

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 closely to the ceiling rate set by the SBV, commonly at 17,800-17.802 VND/USD. The SBV closely watched the developments in the market, managed the exchange rate flexibly and implemented necessary measures to facilitate active operations of the foreign exchange market.

5. SBV Management Board’s activities

- Governor Nguyen Van Giau of the State Bank of Vietnam (SBV) had a meeting in Hanoi on June 22 with Mr. Xiaoyu Zhao, Vice-President of the Asian Development Bank (ADB) and his delegation.

- Deputy Governor Nguyen Dong Tien of the State Bank of Vietnam (SBV) paid a visit to Cambodia on June 23 on the occasion of the opening of a branch of the Saigon Thuong Tin Joint-Stock Commercial Bank (Sacombank) in the Capital City of Phnom Penh.

- Deputy Governor Nguyen Dong Tien visited Vientiane of Laos and attended the ceremony to present the Labor Order of Third Class of the President of the Socialist Republic of Vietnam to the Lao-Viet Joint-Venture Bank on June 21.

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