Weekly information on banking activities (Apr 22 - 29, 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 14.5% - 17% p.a for agricultural and rural development and exporters, 17-20% p.a for other productive and business enterprises, and 20 - 23% p.a for the non-productive sector.

- The USD interest rates:

+ The mobilizing rates were commonly at 0.1 - 1.0% p.a for demand deposits, and 2.6 - 3.0% p.a for time 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. Inter-bank transactions turnover :

According to the express reports of commercial banks by April 27, the total amount of transactions in the inter-bank market reached about VND 134,919 billion and US$ 3,773 million, i.e. VND 26,983 billion and US$ 754 million per day averagely. 

Most transactions in VND were short terms (Overnight and 1 week terms), especially overnight. The total amount of overnight transactions was  VND 43,546 billion, accounting for 32% of the total amount of VND transactions. The total amount of overnight USD transactions was 1,649 million, accounting for 43.7% of the total amount of USD transactions.

3. The average inter- bank interest rates:

The interest rates by April 27 were as follows:

For the rates in VND, the average inter-bank interest rates for most terms were on a upward trend with an increase of 0.02- 0.19 percentage points p.a. The rate for 12 month term was unchanged. The average rates for 2 week and 1 month terms declined by 0.12 and 0.43 percentage points p.a respectively.

The average overnight interest rate was up by 0.06 percentage point p.a, at 13.24% p.a. The rates for other terms ranged between 12.76 - 13.5% p.a (Excluding demand loans) 

For the rates in USD, the average interest rates for overnight and 1 month terms were on a upward trend. The average rate for other terms declined slightly as compared to the previous week. The average interest rate for overnight term increased by 0.09 percentage point p.a to 0.70% p.a; the rates for other terms ranged between 0.81 - 1.70% p.a.

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

4. Exchange rate  

The stipulation by SBV of maximum USD deposit interest rate of 3% for individuals at credit institutions and an increase of foreign currency reserve requirement ratios by 2% applicable to credit institutions started to positively affect the forex market. More and more entities and individuals sold foreign currencies to commercial banks. The exchange rate in the  market was marginally down. Commercial banks quoted the buying and selling VND/USD rates at 20,600-20,750.

Diem Hang

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>   Weekly information on banking activities (Apr 22 -29, 2011) (09/05/2011)