1. - The State Bank of Vietnam (SBV) issued Circular No.15/2009/TT-NHNN on August 10 to stipulate the maximum ratio of short-term capital resources which credit institutions in Vietnam, excluding local people’s credit funds, are allowed to use for medium and long-term loans. This Circular supersedes all regulations on the maximum ratio of short-term capital resources used by credit institutions for medium and long-term loans that were stipulated in Decision No.457/2005/QĐ-NHNN dated April 19, 2005 on prudent ratios in operations of credit institutions.
- The SBV issued Circular No.16/2009/TT-NHNN on August 11 to amend Decision No.07/2008/QD-NHNN of the SBV Governor dated March 24, 2008 on domestic issuance of valuable papers by credit institutions. This revised regulation on issuance of domestic valuable papers aims at facilitating the credit institutions to issue long-term valuable papers so as to meet the requirements of economic development and to match with new tasks and mandate of the Financial Supervision Agency under Decision No.83/2009/QD-TTg of the Prime Minister dated May 27, 2009.
2. Several joint-stock commercial banks such as the Viet Nam Thuong Tin Commercial Joint Stock Bank, the Saigon Joint-Stock Commercial Bank (SCB), the Orient Joint-Stock Commercial Bank (OCB), the Housing Development Commercial Joint Stock Bank (HDBank) and the Saigon-Hanoi Joint-Stock Commercial Bank (SHB) increased VND mobilizing rates by 0.2 – 0.5 percentage point p.a. for short terms (1 week, 2 weeks and 1 month terms).
+ The USD mobilizing rates were stable as compared to the previous week. Several commercial banks slightly increased their rates.
The average mobilizing rates were as follows:
The lending rates in VND of the group of the state-owned commercial banks for short, and medium and long terms were commonly quoted at 8.5% - 10% p.a., and 10%-10.5% p.a. respectively. The group of joint-stock commercial banks commonly offered their lending rates in VND from 10 % - 10.5% p.a. The lending rates after deducting the amount of interest rate subsidy were from 4.5% to 6% p.a. The negotiable lending rates applicable for personal and credit card loans were commonly at 12% - 16.5% p.a.
The lending rates in USD of the group of the state-owned commercial banks for short, and medium and long terms were commonly quoted at 3% p.a., and 3.5% - 5% p.a. respectively. The group of joint-stock commercial banks commonly offered their lending rates in USD for short term, and medium and long term at 3% -5% p.a., and 4%-6% p.a. respectively.
3. During this week, the total amount of transactions in the inter-bank market reached about VND 60,700 billion and USD 2 billion, i.e.VND 12,100 billion and USD 430 million per day averagely, with main transactions for short terms and a few transactions for 6 months and 12 months terms.
The average interest rates in VND in the inter-bank market were on a upward trend for most terms (the lowest increase was 0.68 percentage point p.a.). The average rates for overnight, 1 week, 2 weeks and 12 months terms increased over 1 percentage point p.a. as compared to the previous week. The average overnight rate was 7.20% p.a (an increase of 1.39 percentage point p.a.). The rates of other terms ranged between 8.28% to 9.50% p.a.
The average interest rates in USD in the inter-bank market were on a slight downward trend for 2 weeks, 1 month and 3 months term, while the rates for other terms were on a upward trend as compared to the previous week. However, the changes were minor (less than 0.3 percentage point p.a.). The highest average interest rate in USD was 1.58% p.a. for 3 months term, and the rates of other terms ranged between 0.42%-1.46% p.a.
The average interest rates in the inter-bank market were as follows (% p.a):
4. During the week, the foreign exchange market became less tense with the improvement of liquidity and remarkably decreased hoarding of foreign exchange. The SBV continued to closely watch the developments in the market and implement proper measures of intervention to stabilize the foreign exchange market.
- Governor Nguyen Van Giau on behalf of the Vietnamese Government and Ms.Victoria Kwakwa, Country Director of the World Bank in Vietnam, signed in Hanoi on August 7 the financing agreement for the WB-financed Eighth Poverty Reduction Support Credit worth US$ 350 million.
- Governor Nguyen Van Giau had a meeting with Mr. Dato Seri Nazir Razak, Managing Director of CIMB Group (Malaysia), in Hanoi on August 8.
- Governor Nguyen Van Giau, on behalf of the Government of the Socialist Republic of Vietnam, joined Ms. Victoria Kwakwa, Country Director of the World Bank (WB) in Vietnam, in signing the financing agreement and related legal documents of the “Local Development Investment Funds Project” worth US$ 190 million in Hanoi on August 12.