Weekly Bulletin on Banking Operations (October 14-18, 2019)
1. Forex market and exchange rates:
The buying and selling exchange rates quoted on the commercial banks’ websites decreased slightly from VND 23,145/23,265 against the USD on the first two days of the week to VND 23,140/23,260 against the USD on the third day; then increased back on the last 2 days and were quoted at the same level of the beginning of the week (up by 5 VND per USD for both buying and selling exchange rates as compared to the last day of the previous week).
2. Mobilization and lending interest rates:
2.1. Mobilization interest rates:
- The mobilization interest rates in VND: The common rates were between 0.2% p.a – 1% p.a for demand and below 1-month term deposits, 4.5% p.a – 5.5% p.a for 1-month to below 6-month terms, 5.5% p.a – 6.8% p.a for 6-month to below 12-month terms, and 6.6% – 7.5% p.a for 12-month plus terms.
- The mobilization interest rates in USD: The common mobilization interest rate in USD was 0% p.a for both individuals’ and institutions’ deposits.
2.2. Lending rates:
- The lending interest rates in VND: The common average rates were between 6.0% – 9.0% p.a for short-term loans; 9.0% p.a – 11.0% p.a for medium and long-term loans.
- The lending interest rates in USD: The common rates were between 3.0% – 6.0% p.a. The rates were 3.0% p.a – 4.7% p.a for short-term loans and 4.5% – 6.0% p.a for medium and long-term loans.
3. Inter-bank transaction operations:
3.1. Transactions:
According to the reports submitted by the credit institutions and the foreign bank branches, the total amount of transactions in the inter-bank market within the week reached approximately VND 289,074 billion, an average of VND 57,815 billion/day, a decrease of VND 1,434 billion/day as compared to the week of October 7-11, 2019; meanwhile the transaction amount in USD was equivalent to VND 111,226 billion, an average of VND 22,245 billion/day, a decrease of VND 5,988 billion/day as compared to the previous week.
Most VND transactions were for overnight and 1-week terms, accounting for 66% and 20% of the total amount of VND transactions respectively. The transactions in USD were mostly for overnight and 1-week terms, accounting for 73% and 13% of the total amount of USD transactions respectively.
3.2. The average inter-bank interest rates:
- For transactions in VND: As compared to the previous week, the average inter-bank interest rates decreased for most terms. Specifically, the average inter-bank interest rates for overnight, 1-week and 1-month terms decreased by 0.23 percentage points p.a, 0.26 percentage points p.a and 0.45 percentage points p.a to 1.71% p.a, 1.95% p.a and 2.57% p.a respectively.
- For transactions in USD: The average inter-bank interest rates fluctuated slightly around the rates of the previous week. Specifically, the average inter-bank interest rates for overnight and 1-week terms decreased by 0.05 percentage points p.a and 0.04 percentage points p.a to 1.87% p.a and 2.96% p.a respectively; meanwhile the average inter-bank interest rate for 1-month term increased by 0.12 percentage points p.a to 2.22% p.a.
The specific average inter-bank interest rates were as follows:
Term |
Overnight |
1-week |
2-week |
1-month |
3-month |
6-month |
9-month |
VND |
1.71 |
1.95 |
2.17 |
2.57 |
4.20 |
4.97 |
4.80 |
USD |
1.87 |
1.96 |
2.03 |
2.22 |
2.62 |
2.80 |
- |
Translated by Le Hang