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					          Monthly information on banking activities (January, 2011)


      I- State Bank of Vietnam activities:
       1. To implement Resolution No. 02/NQ-CP of the Government dated
January 9, 2011 on key solutions in guiding and managing the
implementation of the Socio-Economic Development and the State
Budgeting Plan in 2011, the State Bank of Vietnam (SBV) issued the Action
Plan of the banking sector for 2011 with 11 sets of tasks and 26 specific
undertakings in order to contribute to meeting the targets of socio-economic
development in 2011 set by the National Assembly and the Government.
       2. In response to the Government’s directives on prudent monetary
policy management in early 2011, the SBV carried out specific tasks in
January as follows:
       - To maintain the refinancing and base interest rates at 9% p.a , and
rediscount rate at 7% p.a.
       - To flexibly manage monetary policy instruments (open market
operations (OMOs), refinancing, and foreign currency swaps) in order to
support the liquidity for credit institutions, ensure safe banking operations
and maintain a stable money market during the Lunar New Year of the Cat.
       - To require SBV entities and credit institutions to continue strictly
implementing the measures stipulated in Directive No.04 /CT-NHNN dated
November 4th, 2010 on the implementation of monetary, credit and banking
solutions in order to contribute to price and macro-economic stabilization
and Document No. 9551/NHNN-CSTT dated December 8, 2010 on the
implementation of Directive No. 2164/CT-TTg of the Prime Minister dated
November 30, 2010, hence contributing to boosting production and
stabilizing prices during the Lunar New Year of the Cat and the first quarter
of 2011.
       - To coordinate with the municipal and provincial People's
Committees to guide the relevant specialized agencies in their locations to
monitor and deal with all cases of speculation, hoarding and illegal trading
of gold and foreign currencies, specially before and during the Lunar New
Year of the Cat; and to direct the SBV municipal and provincial branches to
formulate the 2011 inter-sectoral inspection plans to be submitted to their
local people’s committees for approval. These plans will be implemented
with the coordination of their relevant specialized agencies.



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      3. To ensure a safe vault and ATM network during the Lunar New
Year of the Cat, the SBV came up with the following requirements :
      - For functional entities of the banking sector: to take measures to
protect cash, assets, and valuable papers, and cash transport and vaults,
especially in complicated areas, round-the-clock during the Lunar New Year
Festival. The municipal and provincial People's Committees were requested
to direct the police forces to assist the protection of the vaults for the
banking sector.
      - For the card issuers: they should direct their units of the entire
network to coordinate with local public security agencies to ensure safe
operations of ATMs; to enhance ATM crime information and warning to
the public, to ensure smooth operations of ATMs during the Lunar New
Year holiday; and to provide the most convenient ATM services to
customers with the regular guidance and assistance of the SBV municipal
and provincial branches.

  III. Credit and Monetary development
  1. Interest rates:
   The mobilizing and lending rates slightly changed in comparison with
those of end 2010: the average VND mobilizing rate was 12.44% p.a under
increasing pressure; the average lending rate was 15.74% p.a ; the lending
rates of short terms were commonly at 16% - 17% p.a; the rates for non-
productive sector (real estate, securities and personal loans) were 18 – 20%
p.a; and the rates for rural and agricultural production, and exporters were
commonly at 14-16% p.a.
  The USD mobilizing rates were up by 0.5 – 1% percentage points p.a as
compared to end December, 2010. The average mobilizing and lending rates
were commonly at 4.17% p.a and 6.37% p.a respectively.
  2. Exchange rate:
   The inter – bank VND / USD exchange rate was stable at 18,932 in the
official market while commercial banks quoted their exchange rates at
19,495 – 19,500 VND/USD. The VND / USD exchange rate in the parallel
market slightly fluctuated, ranging between 20,980 - 21,050.
  The gold price fluctuated in line with the international gold price
movement, at VND 35.33 - 35.41 million/tael.
  3. Fund mobilization


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  The total deposits with credit institutions by January 21 was estimated to
decrease by 2.46% as compared to the previous month, of which VND
deposits was down by 4.12% and foreign currency deposits by 4.43%.
  4. Credit to the economy
    Credit to the economy by January 21 was estimated to increase by
0.43% as compared to the previous month, of which VND investment
decreased by 0.09% and foreign currency investment was up by 2.37%.
  5. Total liquidity
   The total liquidity by January 21 was estimated to decrease by 0.33% as
compared to the previous month, of which the cash in circulation increased
by 12.54%.

LVH-DH




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