Highest lending interest rate at 25pct/yr in week ending Nov 18

The State Bank of Vietnam (SBV) has reported the banking operations in week between November 12 and 18 whereby the lending interest rate in Vietnamese dong continued to be stable at 15-18% per year (for agriculture, rural area and export) with the lowest at 13.5% per year.
The lending interest rate for other production and business was at 18-21% per year (the lowest was 15% per year) and it was 22-25% per year for non-production sector.

Meanwhile, the lending interest rate of US dollar was commonly at 6-7.5% per annum for short-terms and 7.5-9% for medium and long terms.

Till November 16, the interbank average interest rate in dong decreased for terms of from 3-weeks and longer, of which, the strongest fall was seen in terms of 12-months and longer by 5.84% and 3.76% week on week. Short terms of from 2-weeks and shorter increased slightly, the central bank reported.

Overnight average interest rate stood at 13.72% per annum, up 0.03% from previous week.

The interest rate for terms of from 1-week to 3-months ranged between 12.51% (3-month term) and 15.31% (2-week term), 6-month term at 16.33% p.a. Only 9-month term was still at above 20% p.a. and terms of 12-months and longer at 16.91% and 18.64% p.a.

For transactions in US dollar, the average interest rate increased slightly for terms of overnight, 1-month and 12-months. Terms of 3-weeks and above 12-months saw rises of 1.51% and 0.52% w-o-w and remaining terms saw falls by 0.14% (2-month term) and 1.41% (3-month term).

The overnight average interest rate in week was at 1.5% per annum, up 0.12% from previous week and it hovered around 2.13% (over 2-month term) and 4.24% p.a. (12-month term). In the period, there were no transactions for 9-month term and transactions for 6-and 12-month terms were negligible.

According to credit institutions, till November 16, the total trading volume on the interbank market in dong reached approximately 167.916 trillion dong, averaging at 33.583 trillion dong per day and in US dollar at 52.111 trillion dong, averaging at 10.422 trillion dong per day.

Also in week, transactions incurred mainly for short term, especially for terms of overnight and 1-week terms. For transactions in Vietnamese dong, overnight term accounted for the biggest value of approximately 80.021 trillion dong, or 48% of the total trading turnover.

For transactions in US dollar, overnight term also made up the biggest proportion with 27.235 trillion dong, or 52% of the total trading value. – Vietbiz24

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial, Vietnam interest rates