Weekly information on banking activities (Jan 8 - 14, 2011)

1. Mobilizing and lending rates:

- The VND interest rates:

+ The mobilizing rates in VND changed slightly as compared to the previous week, and were commonly quoted at 13.5%-14% p.a.. Most credit institutions refrained from promotion programs with cash and interest rate bonus.

+ The lending rates for short terms were commonly 12.5%-14.5% p.a for agricultural and rural development and exporters, 15-18% p.a for other productive and business enterprises, and 18-20% p.a for the non-productive sector.

- The USD interest rates:

+ The mobilizing rates for below 12 month terms increased by 0.5 percentage point p.a. The common mobilizing rates were 0.2-0.5% p.a for demand deposits, 3.5-5.5% p.a for below 12- month deposits, and 4.8-5.6% p.a for over 12- month deposits. The highest interest rate was 6.24% p.a for 12 month term quoted by the Nam Viet Joint-Stock Commercial Bank.

+ The lending rates rose by 0.3-0.5 percentage points p.a as compared to the previous week. The lending rates were commonly 5.6-6.6% p.a for short terms, and 6.2-8% 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 January 12, the total amount of transactions in the inter-bank market reached about VND 116,060 billion and USD 3,021 million, i.e. VND 23,212 billion and USD 604 million per day averagely. 

Most transactions in VND were overnight and 1 week terms. The amount of 1 week transactions in VND reached 48,310 billion, accounting for 42% of the total amount of VND transactions. The amount of overnight transactions in USD reached 1,766 million, accounting for 58% of the total amount of USD transactions.

3. The average inter- bank interest rates:

The interest rates by January 12 were as follows:

- For the rates in VND, the average VND interbank interest rates were on a slight decrease by 0.04 - 0.23 percentage points p.a for several terms (2 week - 3 month, 12 month and demand terms). The average rates for overnight, 1 week and 6 month terms increased by 0.84, 0.58 and 0.63 percentage points p.a respectively.

The average overnight interest rate was 11.40% p.a, up by 0.84 percentage point p.a as compared to the previous week. The rates for over 1 week terms ranged between 13 - 13.5% p.a. The highest average rate was 13.5%. The lowest rate was 8% p.a (Excluding demand term).

- For the rates in USD, the average interest rates in USD for 2 week and 1 month terms were on upward trend as compared to the previous week. The rates for other terms were on downward trend with a slight decrease of the rates for overnight and 1 week terms; the rates for 3 and 12 month terms remarkably declined. The average overnight rate was 0.38% p.a; the other rates ranged between 0.66% - 1.75% p.a. 

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

4. Exchange rate        

The foreign exchange market continued to show positive signs. Commercial banks could buy foreign currencies from the market and sold to their customers. In addition, the increasing foreign currency amount from important capital inflows of the trade balance in the final months of the year contributed to enhancing the foreign currency supply in the market. The exchange rates in the parallel market were on the downward trend. The VND/USD rates were commonly quoted by commercial banks at 19,495-19,500.

Diem Hang

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