Charter capital of private joint stock banks doubles state-owned banks’

02-Dec-2021 Intellasia | NDH | 5:02 AM Print This Post

The State Bank of Vietnam (SBV) has updated a number of basic indicators in the operations of the system of credit institutions (CIs). As of September 30th, the total assets of the system were 15,000 trillion dong, up by 7.5 percent compared to the end of 2020.

The total assets of private joint stock banks increased by nine percent compared to the end of 2020 to 6,600 trillion dong, accounting for nearly 44 percent of the system’s total assets. Meanwhile, the group of state-owned banks (including Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank), Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank), Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank), Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV), Construction Bank, Global Petro Bank, Ocean Bank)) recorded an increase of 7.22 percent in total assets, reaching 6,200 trillion dong, accounting for 41.18 percent of the system’s total assets.

Foreign banks have tended to slow down in the past two years. The total assets of this group only increased by 3.1 percent in the first three quarters of 2021 to over 1,500 trillion dong.

The total assets of finance companies declined by 0.8 percent in the first three quarters to 227.075 trillion dong. Meanwhile, the group of joint venture and foreign banks only saw an increase of three percent in total assets, reaching nearly 1,570 trillion dong.

The charter capital of the entire system was 750.580 trillion dong, up by 8.3 percent over the beginning of the year. For the group of private joint stock banks, the charter capital was 348.481 trillion dong, up by nearly 10 percent in nine months, accounting for 62 percent of the total charter capital of the whole industry. Meanwhile, the group of state-owned banks recorded a charter capital of 169.690 trillion dong, up by nine percent, accounting for 24 percent of the entire system. The charter capital of finance companies and financial leasing companies rose by 14.78 percent to over 35.077 trillion dong.

Concerning the Capital Adequacy Ratio (CAR) according to Circular 41 (Basel II), state-owned banks recorded this ratio at 9.17%, higher than the minimum limit of eight percent. Meanwhile, this ratio is 11.38 percent at private joint stock banks and 18.94 percent at foreign banks.

The ratio of short-term funds used for medium and long-term loans of the entire system was 25.09 percent as of September 2021. Specifically, this rate was 27.91 percent for state-owned banks, 28.39 percent for private joint stock banks, and 37.25 percent for finance and financial leasing companies.

According to the roadmap, this ratio was applied at 40 percent from January 1st 2020 to the end of September 30th 2021, and is 37 percent from October 1st 2021 to the end of September 30th 2022, 34 percent from October 1st 2022 to the end of September 30th 2023, and 30 percent from October 1st 2023.

Regarding profitability, the Return on Assets (ROA) and Return on Equity (ROE) ratios of state-owned banks by the end of the second quarter were respectively 0.55 percent and 9.48%. Meanwhile, these ratios of private joint stock banks were respectively 0.87 percent and 10.23%.

 

Category: Finance, Vietnam

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