Trading turnover in dong exceeds 100tr dong in week between Sept. 17 and 23

In the week between September 17 and 23, the highest interbank average interest rate was at 13.68% per annum (p.a.) for 1-month term, Vietbiz24.com cited the State Bank of Vietnam (SBV)’s report on banking operations in week from September 17 to 23.
Accordingly, the interbank average interest rate in dong as of September 21 tended to increase slightly for terms of 2-weeks, 3-months, 12-months and non-term whereas the interest rate trended to fall by 0.08-0.51% p.a. from previous week for remaining terms.
The overnight average interest rate in the week stood at 12.19% p.a., down 0.51% from the average level in previous week. The average interest rate for remaining terms ranged between 13% and 13.5% p.a., of which, the highest interest rate of 13.68% p.a. was given for 1-month term (except non-term interest rate).
The total trading turnover in dong on the interbank market as of September 21 reached approximately 116.949 trillion dong, averaging at 23.39 trillion dong per day, up over 18% week on week.
In week, dong transactions occurred mainly short terms (overnight and one week), accounting for 65% of the total trading turnover.
On September 28, the central bank said that some credit institutions launched very short capital mobilization programs (24 hours, 2-days, 1-week, 2-weeks) with the maximum interest rate of 14% per year, causing risk potentials for the liquidity of the banking system.
Therefore, the central bank issued Circular No 30 that officially came into force as of October 1 prescribing the dong deposit interest rate cap for non-term and less than 1-month terms at 6% per annum and the cap is still retained at 14% per annum for terms of from one month and longer. – Source:Vietbiz24.com

Tags: Trading turnover, Vietnam banking industry, Vietnam finance, Vietnam financial, Vietnam Trading turnover

Posted by quynhdn on Oct 3 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry