Weekly Information on Banking Activities (December 24 – 28, 2012)
1. Mobilizing and lending rates:
1.1. Mobilizing rates:
- After the SBV decreased the base interest rate by 1% percentage point p.a and reduced the ceiling rate for 1 month to below 12 month term deposits to 8% p.a from December 24, 2012, commercial banks cut down the VND mobilizing rates to the levels in accordance with the SBV regulations. Á a result, the rate was commonly 1 -2% p.a for demand and below 1 month terms, the rates for 1 month to below 12 month terms were 7.8-8% p.a for 1 to below 12 month terms; and 10-11.5% p.a for 12 month and 12 month plus terms (several small joint-stock commercial banks still maintained the rates at 12% p.a for over 12 month term).
- The USD mobilizing rates were commonly 2% p.a for individuals and 0.5% p.a for economic institutions.
1.2. Lending rates:
- The VND lending rates: following the regulated reduction of the ceiling mobilizing rate in VND, the ceiling lending rates in VND for four priority fields such as agricultural and rural development, exporters, supporting industries, SMEs and high-tech enterprises were down from 13% p.a to 12% p.a. The rates were commonly 9% - 12% p.a for agricultural and rural development, exporters, supporting industries, SMEs and high-tech enterprises; and 12-15% p.a for other productive and business sectors.
- The USD lending rates were commonly 5-7% p.a for short term and 6-8% p.a for medium and long terms.
The specific lending rates were as follows:
Group of commercial banks |
Currency |
Short term (% p.a.) |
Medium and long terms (% p.a.) |
Group of state- owned commercial banks |
-VND applicable to ordinary loans -VND applicable to loans for agricultural production and exporters |
- commonly at 11-15 - the lowest rate at 8.95 - Commonly at 10-13 - the lowest rate at 8.95 |
14.6-16.5 14.6-16 |
USD |
5.0-6.0 |
6.0-7.5 |
|
Group of joint-stock commercial banks |
-VND applicable to ordinary loans -VND applicable to loans for agricultural production and exporters |
- commonly at 12-15 - the lowest rate at 6.8 - commonly at 11-13 - the lowest rate at 7.5 |
16-17.5 15-16.5 |
USD |
5.5-7.0 |
6.5-8.5 |
2. Inter-bank transactions turnover:
2.1. Transactions:
According to the reports of commercial banks, the total amount of transactions in the inter-bank market reached about VND 69,890 billion and a USD amount equivalent to VND 90,657, i.e. VND 13,978 billion and VND 18,131 billion per day averagely.
Most transactions were overnight and 1 week terms with an amount of VND 52,625 billion, accounting for 75% of the total amount of VND transactions. Short – term transactions in USD reached an amount equivalent to VND 79,376 billion, accounting for 88% of the total amount of USD transactions.
2.2. The average inter- bank interest rates:
For the rates in VND, the average interest rates for 3 week, 6 and 9 month terms decreased by 0.28, 1.09 and 0.05 percentage points p.a respectively. The rates for other terms increased; of which the rate for overnight to 2 week and 2 month terms increased by 2.16% (overnight term) to 2.54% (2 week term). The rates for 1, 3 and 12 month terms increased by 0.64, 1.17 and 0.56 percentage points p.a respectively. There was no transaction for over 12 month terms. Transactions for 3 week and 9 month plus terms were marginal.
For the rates in USD, the average interest rates for 2 week, 3 week, 3 month and 6 month terms decreased by 0.06 (2 week and 3 week terms) to 1.78 (6 month term) percentage point p.a. The rates for other terms increased by 0.03 percentage point p.a (2 month term) to 0.35 percentage points p.a respectively (12 month term). There was no transaction for 9 month and over 12 month terms; transaction for 2 and 6 month terms was marginal.
The specific average inter-bank interest rates were as follows:
Term |
Overnight |
1 week |
2 weeks |
3 weeks |
1 month |
2 months |
3 months |
6 months |
9 months |
Over 9 months and below 12 months |
Over 12 months |
VND |
4.19 |
5.27 |
6.19 |
4.75 |
8.01 |
9.35 |
8.87 |
8.15 |
9.50 |
12.17 |
- |
USD |
0.40 |
0.41 |
0.30 |
0.43 |
0.83 |
0.41 |
1.82 |
1.08 |
- |
3.17 |
- |
3. Exchange rate
The forex market was relatively stable. The exchange rate was on a slight downward trend. The liquidity was improved, and credit institutions could buy foreign currencies from customers. The VND/USD trading exchange rate quoted by commercial banks was around 20,820-20,860.
DH