Weekly information on banking activities (Nov 27-Dec 3, 2010)

1. Mobilizing and lending rates:

The mobilizing and lending rates were as follows:

- The VND interest rates:

+ The mobilizing rates increased by 0.5-1 percentage points as compared to the previous week. The mobilizing rates quoted by several joint-stock commercial banks was commonly 12.5-13.5% p.a.

+ The lending rates were slightly changed in comparison with the previous week. The lending rates were commonly 12-13% p.a for agricultural and rural development and exporters, 14-17% p.a for other productive and business enterprises, and 18-20% p.a for the non-productive sector.

- The USD interest rates were stable as compared to the previous week.

+ The mobilizing rates were 0.2-0.5% p.a for demand deposits, 3.5-5.2% p.a for below 12- month deposits, and 4.2-5.6% p.a for over 12- month deposits.

+ The lending rates were commonly 5.5-6.5% p.a for short terms, and 6-8% p.a for medium and long terms.

The specific mobilizing and lending rates were as follows:

2. Transactions turnover:

According to the express reports of commercial banks by December 2, the total amount of transactions in the inter-bank market reached about VND 132,271 billion and USD 2,982 million, i.e. VND 26,454 billion and USD 596  million per day averagely. 

Most transactions in VND were short terms (Overnight, 1 week and 2 weeks). The amount of overnight transactions in VND reached 50,859 billion, accounting for 38.45% of the total amount of transactions in VND of the whole week. The amount of overnight transactions in USD reached 1,480 million, accounting for 49.6% of the total amount of USD transactions.

3. The average inter- bank interest rates:

The interest rates by December 2 were as follows:

- For the rates in VND, the average VND interbank interest rate for 1-6 month terms slightly increased by 0.04-0.56 percentage points p.a. The rate for overnight, 12 month and demand terms continued to decline by 0.22, 0.35 and 0.14 percentage points p.a respectively.

The rate for overnight term was 8.94% p.a, down by 0.22 percentage point as compared to the previous week. The other rates ranged between 12%-13% p.a. The highest lending rate was 13.39% for 3 month term.

- For the rates in USD, the average interest rates in USD were on a slight downward trend for 2 week and 3 month terms; the other rates increased as compared to the previous week. The average overnight rate was 0.53% p.a. The average rate of other terms ranged between 0.79%-1.49% p.a. 

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

4. Other activities

In order to implement the Government’s directive of stabilizing the foreign exchange market, maintaining exchange rate and contributing to limiting trade deficit, the SBV continued to sell foreign currencies to meet the demand for importation of essential commodities.

Moreover, the SBV Inter-Department Working Team is still monitoring credit institutions in lending and settlement in foreign currencies for importation of non-essential and import-restricted goods stipulated by the Ministry of the Industry and Trade.

Diem Hang

sbv

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