For the first time, the State Bank of Vietnam (SBV) has publicised in a systematic way the information about credit operations in accordance with the Circular No 35/2011.
Accordingly, the total credit till April 30, 2012 was 2,617,320 billion dong, down 0.59 percent over the end of 2011. Of which, credit for manufacturing and processing industry grew 5.19 percent to 607,846 trillion dong, accounting for the biggest proportion in the total credit of the whole system.
The total deposits from people saw a strong increase of 11.78 percent in Jan-April, to hit 1,449,453 billion dong while savings of enterprises posted a fall of 5.6 percent to 1,084,405 billion dong.
Totally, the total deposits from individuals and institutions increased 88 trillion dong, equalling to 3.6 percent to 2,533,858 billion dong.
According to Nguyen Duc Hung Linh, director of Analysis and Investment Consulting Department for individual customers of Saigon Securities Inc (SSI Research), the fall in savings of enterprises was attributable to two reasons: first, enterprises are seriously lacking capital so they keep money to lend to each other without going through the banking system and second, the difficult economy caused declines in profit and cash flows of enterprises, resulting in falls in savings at banks.
Meanwhile, the total money supply till the end of April was 3,035,790 billion dong, rising 3.14 percent (92 trillion dong); lower than the rise of total deposits.
According to SSI Research, the growth of total money supply and total deposits can be explained by the central bank’s injection of about 180 trillion dong to the market to buy US dollar for reserves. If subtracting the money withdrawal from open market operations (OMO) and the volume of Treasury bills issued by the central bank (120-140 trillion dong), the amount of unwithdrawn money is still 40-60 trillion dong.
The ratio of credit/total deposits of the entire banking system till April 30 was 86%, relatively high against the ratio of 80 percent according to the Circular No 13. It is noteworthy that this rate of state-owned commercial banks was 107.8 percent while that of commercial joint stock banks was only 77.6%.
The capital adequacy ratio (CAR) of state-owned commercial banks was 10.8 percent while that of commercial joint stock banks was 14.2%.
In the banking sector, the group of joint venture and foreign banks have the highest CAR of 32.54 percent while the common CAR of the whole banking system is 14.55 percent (much higher than the safe level of 9 percent as prescribed at the Circular No 13).
Thanks to the chartered capital increases via share issuances to foreign and local shareholders, the equity of state-owned commercial banks increased 12.5 percent in the first four months of this year, higher than the level of 5.55 percent of commercial joint stock banks. Despite rapid chartered capital increase, the return on assets (ROA) and return on equity (ROE) of state-owned commercial banks are still higher, at 0.43 percent and 4.87%, nearly two fold increase against the ROA and ROE of commercial joint stock banks at 0.23 percent and 2.51%.
The total assets of the entire banking system till the end of April declined 1.83 percent to 4,868,649 billion dong. The fall was seen in both state-owned commercial banks and commercial joint stock banks, but the decline of state-owned banks was lower (-1.74%) against the fall of commercial joint stock banks at 2.3%.