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Weekly Information on Banking Activities (May, 28-June 3, 09)
The weekly information on banking activities (May, 28-June 3, 2009) as follows:
1. The State Bank of Vietnam (SBV) and credit institutions continued to implement the interest rate subsidy program, ensuring that capital-borrowing needs will be met in a convenient and prompt manner and in compliance with law. In addition, the SBV went on to flexibly manage the monetary policy.
2. The mobilizing rates in VND of credit institutions increased by 0.3 - 0.5 percentage point as compared to the previous week. The highest mobilizing rate is 9.8% p.a. for 36 months term, offered by the Housing Development Bank.
The mobilizing rates in USD decreased by 0.4 – 0.6 percentage point as compared to the previous week. From June 1st, the Stated-Owned Commercial Banks (SOCBs) and the Joint-Stock Commercial Bank of Foreign Trade of Vietnam (Vietcombank) applied the highest mobilizing rate of 1.5% p.a. and the lending cap of 3% p.a.
At a meeting led by the Vietnam Banks Association in Hanoi on June 3, joint-stock commercial banks also reached a high consensus on reducing the mobilizing rate in USD to the highest level of 1.5% p.a. and the lending rate in USD to the cap of 3% p.a. from June 8.
The average mobilizing rate is quoted between June, 1 and June 6, 2009 as follows:
|
The average
mobilizing rate
|
Currency |
Demand
(% p.a) |
3 months
(% p.a) |
6 months
(%p.a) |
12 months
(% p.a) |
|
Group of state- owned
commercial banks |
VND |
2.88 |
7.30 |
7.50 |
7.85 |
|
USD |
0.20 |
1.14 |
1.30 |
1.50 |
|
Group of joint-stock
commercial banks |
VND |
2.91 |
7.75 |
7.98 |
8.25 |
|
USD |
0.50 |
1.71 |
1.98 |
2.35 |
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 negotiable lending rates applicable for personal and credit card loans were commonly at 12% - 16.5% p.a. The lending rates in USD reduced by 0.5 – 2.0 percentage point, commonly at 3% – 5% p.a.
3. According to the express reports of credit institutions, by June 2, 2009, the average term interest rates in VND in the inter-bank market were on a downward trend, except the 6 months term (a slight increase by 0.09% p.a.). The highest and lowest decreases for the 1 year term and 3 months term rates are 2.46 and 0.04 percentage points respectively. The average overnight rate is 5.94% p.a., a decrease of 0.2 percentage point as compared to the previous week.
The average term interest rates in USD in the inter-bank market were on a slight upward trend for 1 week, 1 month and 6 months terms, others were on a downward trend. The highest average interest rate in USD was 2.48% p.a. for 6 months term (an increase of 1.01 percentage point), the rates of other terms ranged between 0.49%-1.16% p.a. There was no transactions for 12 months term.
The average interest rates in the inter-bank market were as follows (% p.a):
|
Term |
Overnight |
1
week |
2
weeks |
1
month |
3
month |
6
month |
12
month |
|
VND |
5.94 |
6.82 |
6.89 |
7.36 |
7.98 |
8.35 |
8.26 |
|
USD |
0.49 |
0.77 |
0.95 |
1.08 |
1.16 |
2.48 |
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4. With the high consensus reached by all SOCBs and Vietcombank, both the mobilizing and lending rates in USD were reduced to the highest level of 1.5% p.a. and 3% p.a. respectively. Because the lending cap between VND and USD was extended, the banking sector could do away with the hoarding of foreign exchange by enterprises. The SBV closely watched the developments in the market, and managed the exchange rate flexibly to stabilize the foreign exchange market.
5. SBV Management Board’s activities
- On May 28-29, the Governor attended the “Banking Vietnam 2009 Hanoi Conference and Expo” with the theme of “Modern banking technology with Vietnam’s economic development in the context the Global Economic Crisis”. The conference and Expo was organized by the Banking Information Technology Department of the State Bank of Vietnam (SBV) in coordination with the International Data Group (IDG).
- On May 29, the Governor chaired the SBV’s mid-year conference to review its operations in the first six months of 2009 and chart out its tasks for the rest of the year. The conference was attended by all members of SBV Management Board, leaders from various SBV departments and branches, and representatives of the State-Owned Commercial Banks (SOCBs), the Vietnam Bank for Social Policies, the Deposit Insurance of Vietnam, and the Central People's Credit Fund.
- On June 2, the Governor attended the 1st anniversary of the Tien Phong Joint-Stock Commercial Bank.
- On June 2, the Governor had a meeting in Hanoi with Mr. Ayumi Konishi, Country Director for Vietnam of the Asian Development Bank (ADB).
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