FiinPro: corporate bond value of private banks increases by 96pct

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

The report of FiinPro on the banking industry mentioned that the securities portfolio value of 26 listed banks increased by 16.6 percent to 1,300 trillion dong in 2020, amid the context the government bond yields remained at record low levels.

The increased value was mainly allocated to government bonds (186 trillion dong out of 277 trillion dong), bonds of other credit institutions (66 trillion dong out of 277 trillion dong) and corporate bonds (24 trillion dong out of 277 trillion dong), corresponding to increases of respectively 31%, 46.6 percent and 8.5%. This change focused on the group of private joint stock banks.

Compared to 2019, the total portfolio of state-owned banks only increased by two trillion dong (0.5%), in which the bonds of economic organisations dropped by 60%. In contrast, the total value of private joint stock banks rose by 275 trillion dong, in which the bonds of economic organisations grew by nearly 96%, government bonds increased by 47 percent and bonds of other credit institutions went up by 9.3%.

The total corporate bonds and bonds of credit institutions accounted for 5.6 percent of the total assets of 26 banks, just slightly changed compared to the 5.5 percent recorded in 2018 and 5.2 percent in 2019. This ratio at state-owned banks was lower at 3.5 percent in 2018, 4.2 percent in 2019 and 3.5 percent in 2020, while these numbers at private joint stock banks were respectively 7.5%, 6.1 percent and 7.5%.

 

Category: Finance, Vietnam

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