Weekly information on banking activities (April 2 - 8, 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:

+ Several commercial banks (The Saigon Thuong Tin Joint-Stock Commercial Bank, the Military Joint-Stock Commercial Bank) reduced the USD interest rate by 0.3-0.8 percentage points p.a for time deposits. The mobilizing rates were commonly at 0.2-0.5% p.a for demand deposits, 4.2-5.5% p.a for below 12- month deposits, and 4.5-5.6% p.a for over 12- month deposits. Since April 13, 2011, commercial banks have implemented Circular No.09/2011/TT-NHNN dated April 9, 2011 stipulating the maximum USD deposit interest rate for entities and individuals at credit institutions and foreign bank branches.

+ 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. Inter-bank transactions turnover:

According to the express reports of commercial banks by April 6, the total amount of transactions in the inter-bank market reached about VND 112,527 billion and USD 3,298 million, i.e. VND 22,505 billion and USD 659.6 million per day averagely.

Most transactions in VND were short terms (Overnight, 1 week and 2 week terms) with the total amount of transactions of 87,227 billion, accounting for 78% of the total amount of VND transactions. Most transactions in USD were overnight term with the total amount of transactions of 2,049 million, accounting for 62% of the total amount of USD transactions. There were marginal transactions for 6 month term. There was no transactions for 12 month term.

3. The average inter- bank interest rates:

The interest rates by April 6 were as follows:

- For the rates in VND, the average inter-bank interest rates for overnight, 1 week, 6 month terms were on a downward trend with a decline of 0.01- 0.21 percentage points p.a. The average rates for other terms were on a upward trend with an increase of 0.07-0.47 percentage points p.a.

Although the average overnight interest rate was down by 0.21 percentage point p.a, it remained high at 13.03% p.a. The rates for other terms ranged between 12.95 - 13.50% p.a (Excluding demand term)

For the rates in USD, the average interest rates for most terms (Excluding overnight term) increased as compared to the previous week. The average overnight interest rate was 0.54% p.a, down by 0.02 percentage point p.a. The average rates for other terms ranged between 1.01 - 2.41% p.a.

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

4. Exchange rate 

The exchange rate in the market was marginally down. Commercial banks quoted the buying and selling VND/USD rates at 20,920-20,925. The SBV continued to closely monitor the forex market and take several measures to stabilize the macro-economy.

sbv

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