Weekly information on banking activities (May 4-6 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 May 4, the total amount of transactions in the inter-bank market reached about VND 58,651 billion and US$ 1,408 million, i.e. VND 19,550 billion and US$ 469 million per day averagely. 

Most transactions was 1 week term with the total amount of VND 32,968 billion, accounting for 56% of the total amount of VND transactions; and USD 639 million, accounting for 45% of the total amount of USD transactions.

3. The average inter- bank interest rates:

The interest rates by May 4 were as follows:

For the rates in VND, the average inter-bank interest rates for 1 week - 3 month terms were on a slight upward trend with an increase of 0.03- 0.60 percentage points p.a. The average rates for overnight and demand terms declined by 0.35 and 0.61 percentage points p.a respectively. The rate for 12 month term was unchanged.

The average overnight interest rate was 12.89% p.a. The rates for other terms ranged between 13.05 - 13.5% p.a (Excluding demand loans) 

For the rates in USD, the average interest rates for 1 week, 2 weeks, 6 months and demand terms were on a upward trend with an increase of 0.05 - 1 percentage points. The average rate for other terms declined by 0.15 - 0.71 percentage points p.a as compared to the previous week. The average overnight interest rate decreased by 0.15 percentage point p.a, currently at 0.55% p.a. The rates for other terms ranged between 0.86 - 2.6% p.a. There was no transaction for demand term.

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

4. Exchange rate  

The forex market was more stable.  More and more entities and individuals sold foreign currencies to commercial banks. Commercial banks met the demand of enterprises and individuals for foreign currencies. The exchange rate in the market was marginally down. Commercial banks quoted the buying and selling VND/USD rates at 20,570-20,750.

Diem Hang

sbv

>   Stop abusing transfer pricing to avoid tax: Officials (16/05/2011)

>   Legislative body says no to tax break on dividends (16/05/2011)

>   Inflation eats at people's savings (14/05/2011)

>   Banks try to outdo each other to draw depositors (14/05/2011)

>   Credit growth stalls as interest rates soar (14/05/2011)

>   Joint stock banks subprime loans reportedly low (13/05/2011)

>   Banks attempting to collect ATM fee, for the fourth time (13/05/2011)

>   SBV to keep close eyes on lenders’ investments (12/05/2011)

>   Travellers to be allowed to buy dollars (11/05/2011)

>   City sees 20% drop in remittances (11/05/2011)