Weekly information on banking activities (May 21 - 27, 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 25, the total amount of transactions in the inter-bank market reached about VND 82,066 billion and USD 2,659 million, i.e. VND 16,413 billion and USD 532 million per day averagely. 

Most transactions were overnight terms with the total amount of VND 44,922, accounting for 55% of the total amount of VND transactions. Transactions in USD was overnight term with the total amount of USD 1,650 million, accounting for 62% of the total amount of USD transactions.

3. The average inter- bank interest rates:

The interest rates by May 25 were as follows:

For the rates in VND, the average inter-bank interest rates for overnight, 12 month and demand terms were on a downward trend with a decrease of 0.23- 0.80 percentage points p.a. The average rates for 1 week to 3 month terms slightly increased by 0.10 - 0.35 percentage points p.a. The rate for 6 month term was unchanged, at 13.50% p.a.

The average overnight interest rate was 12.32% p.a. The rates for other terms ranged between 12.50 - 13.50% p.a (Excluding demand loans) 

For the rates in USD, the average interest rates for most terms were on a upward trend with an increase of 0.05-0.76 percentage points p.a, of which the rates for 3 and 6 month term registered the most remarkable increase of 0.65 and 0.76 percentage points p.a respectively. The average rate for overnight and 1 month terms declined as compared to the previous week.

The average overnight interest rate decreased by 0.02 percentage point p.a, currently at 0.53% p.a. The rates for other terms ranged between 1.12 - 2.96% p.a. There was no USD transactions for demand term and marginal transactions for 12 month term.

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. Enterprises and individuals sold more and more foreign currencies to banks, helping to meet foreign exchange demand of clients and to gradually reduce the negative foreign exchange position of commercial banks. Foreign indirect investment continued to increase. SBV could buy additional foreign currencies from the market to increase the amount of international reserves. The exchange rate in the market was stable. Commercial banks quoted the buying and selling VND/USD rates at 20,520-20,610.

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