In its report on banking operations in week between November 5 and 11, the State Bank of Vietnam (SBV) said that the total interbank trading turnover in week decreased 45 percent from the previous week to reach over 135 trillion dong.
According to the report of credit institutions, in the period as of November 9, the total transaction volume in the interbank market in dong reached approximately 135.821 trillion dong (down 45 percent week on week), averaging at 27.164 trillion dong per day and in US dollar at 59.056 trillion dong (down 28 percent w-o-w), averaging at 11.811 trillion dong per day.
In week, transactions in dong occurred mainly for overnight term with the biggest proportion of 55.342 trillion dong, or 41 percent of the total trading turnover and for US dollar, overnight term accounted for 60 percent of the total.
The interbank average interest rate in dong increased in almost terms by 0.31-8.75 percent per year. Notably, for long terms of from 9 months and longer, the interest rate was at above 20 percent, of which the rate was up to 22.75 percent per annum (p.a.) for 12-month term and 22.4 percent p.a. for terms of more than 12 months. However, the trading turnover for these long terms accounted for only 0.2 percent of the total transaction value.
For 1-week term, the average interest rate posted a week-on-week fall of 0.65 percent to 14.13 percent p.a.
Regarding transactions in US dollar, the average interest rate increased slightly for terms of 1-week and 2-months. Terms of overnight, 2-weeks and 3-months increased 0.79 percent, 0.93 percent and 0.79 percent respectively and remaining terms saw decline by 0.3 percent (3-week term) and 1 percent (1-month term).
In week, credit institutions mobilised capital in dong at 6 percent per year for demand deposits and less than 1-month term, 14 percent per year for terms of from one month and longer and in US dollar at 2 percent per annum for individual savings and 0.5 percent p.a. for institutional deposits.
The lending interest rate for agriculture and rural area, export was at 15-18 percent per year, lowest at 13.5 percent per year while it was 18-21 percent per year for other production and business (lowest at 15 percent per year) and 22-25 percent per year for non-production sectors.
The lending interest rate in US dollar was commonly at 6-7.5 percent per annum for short terms and 7.5-9 percent p.a. for medium and long terms.