Weekly Information on Banking Activities (Nov19 - 26, 2010)

1. Mobilizing and lending rates:

The mobilizing and lending rates were as follows:

- The VND interest rates:

+ The mobilizing rates increased by 0.3 percentage point as compared to the previous week. The mobilizing rate quoted by several small commercial banks was up to 13-13.5% p.a for below 12 month terms.

+ 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, exporters, and small and medium enterprises, 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 at 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:

The total amount of transactions in the inter-bank market reached about VND 146,768 billion and USD 3,772 million, i.e. VND 24,461 billion and USD 628.7  million per day averagely. 

Most transactions in VND were short terms (Overnight and 1week). The amount of overnight transactions in VND reached 72,480 billion, accounting for 49.3% of the total amount of transactions in VND of the whole week. The amount of overnight transactions in USD reached 2,145 million, accounting for 56.9% of the total amount of USD transactions.

3. The average inter-bank interest rates:

The interest rates by November 24 were as follows:

- For the rates in VND, the average VND interbank interest rate for most terms decreased by 0.61-2.81 percentage points p.a, of which the rate for short terms (Overnight, 1 week and 2 weeks) remarkably declined by over 1.3 percentage point p.a. The rate for 6 month and demand terms slightly increased by 0.18 and 0.06 percentage points p.a respectively.

The rate for overnight term was 9.16% p.a, down by 2.81 percentage point as compared to the previous week. The other rates decreased but were over 11.2% p.a. The highest lending rate was 13.5% p.a while the lowest rate was 7% p.a (Excluding the demand loan rate).

- For the rates in USD, the average interest rates in USD were on a slight upward trend for 1 week and 6 month terms; the other rates decreased as compared to the previous week. The overnight rate was 0.43% p.a. The other rates ranged between 0.82% -1.51% p.a.  There was no transaction for 12 month term.

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

4. Exchange rate

In the context of the complex developments of the gold price in international markets and high increase of the domestic gold price, the SBV continued to allow several commercial banks and gold trading enterprises to import gold in order to stabilize the domestic gold market.

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

The exchange rate quoted by commercial banks was 19.495-19.500 VND/USD.

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