Credit institution assets reach nearly US$448 billion

12:35 | 29/07/2018 Economy

The total assets held by Vietnam’s credit institutions reached more than 10.3 quadrillion VND (US$447.8 billion) by the end of May, an increase of 3.27 percent over the beginning of this year, the latest report from the State Bank of Vietnam (SBV) showed.

Photo: Vietcombank

The assets of seven State-owned banks inched up 1.84 percent to more than VND4.6 quadrillion, accounting for 45 percent of the total.

State-owned banks where the State holds the majority stake include Agribank, Vietcombank, Vietinbank, Bank for Investment and Development of Vietnam (BIDV), Vietnam Construction Bank, GPBank and Ocean Bank.

Assets of joint-stock commercial banks stood at more than 4.2 quadrillion VND, up 4.17 percent.

Notably, assets of joint venture and foreign banks rose by 5.73 percent to surpass 1 quadrillion VND for the first time.

Charter capital of joint venture and foreign banks is forecast to continue rising as some of them have recently received the SBV’s approval for an increase. The Bank of China (Hong Kong) Limited – HCM City branch, for example, on May 17 was given the green light to increase its charter capital from US$80 million to US$100 million, and the Hanoi branch of NongHyup Bank will be raising from US$35 million to US$80 million.

The SBV report also showed while equity capital of joint stock commercial banks had risen to 315.34 trillion VND, the indicator at State-owned banks fell to 232.47 trillion VND.

Ending May, the average capital adequacy ratio (CAR), which is expressed as a percentage of the bank’s capital to its risk-weighted assets and is one of the main metrics used to promote the stability and efficiency of financial systems, remained unchanged at 9.39 percent at State-owned banks, while the figure for joint-stock commercial banks improved to 11.34 percent.

Despite a slight drop compared with the end of last year, joint-venture and foreign banks had the highest CAR of 27.36 percent.

Theo VNA