Weekly information on banking activities (March 12-18, 2011)

1. Mobilizing and lending rates:

- The VND interest rates:

+ The mobilizing rates were commonly at 13.5-14% p.a

+ The lending rates were commonly 14.5% p.a for agricultural and rural development and exporters, 16-18% p.a for other productive and business enterprises, and 18-22% p.a for the non-productive sector.

- The USD interest rates:

+ The mobilizing rates: Several commercial banks, namely Techcombank, Kien Long Bank, Vietinbank and PG Bank, reduced the mobilizing rates by 0.3-0.5 percentage points p.a for below 12 month terms. The mobilizing rates were commonly at 0.2-0.5% p.a for demand deposits, 4.2-5.8% p.a for below 12- month deposits, and 4.5-6.0% p.a for over 12- month deposits.

+ The lending rates were commonly 6-7.5% p.a for short terms, and 7-8.5 % 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 March 16, the total amount of transactions in the inter-bank market reached about VND 91,004 billion and USD 3,397 million, i.e. VND 18,201 billion and USD 679 million per day averagely.

Most transactions in VND were short terms (Overnight and 1 week terms), especially overnight transactions. Transactions in VND for those terms accounted for 69% of the total amount of VND transactions. Transactions in USD for overnight term was USD 1,731 million, accounting for 51% of the total amount of USD transactions.

3. The average inter- bank interest rates:

The interest rates by March 16 were as follows:

- For the rates in VND, the average VND inter-bank interest rates were on a slight upward trend for most terms, up by 0.02-0.44 percentage points p.a. The rates for 2 week and demand terms slightly decreased by 0.38 and 0.22 percentage points respectively.

The average overnight and 1 week term interest rates continued to rise and be at high levels. In particular: The average overnight interest rate was 13.47% p.a, up by 0.08 percentage point p.a; and the average rate for 1 week term was 13.29% p.a, up by 0.01 percentage point p.a. The rates for other terms ranged between 13-13.5% p.a.

- For the rates in USD, the average interest rates in USD for below 1 month terms were on a downward trend as compared to the previous week, of which the rates for 2 week and 1 month terms were remarkably down by 0.55 and 0.68 percentage points p.a. The average rates for over 3 month terms were up against the previous week. The average rates for 6 month and 12 month terms rose sharply. The average overnight interest rate continued to be up as compared to the previous week, currently at 0.41% p.a, up by 0.03% percentage point p.a. The average rates for other terms ranged between 0.6-4.4% p.a. The amount of transactions for 6 month and 12 month terms was marginal while overnight and 1 week term transactions registered the largest turnover.

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 quoted the buying and selling VND/USD rates at 20,875-20,880. The SBV continued to closely monitor the forex market and take several measures to stabilize the macro-economy.

svb

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