Friday, May 27, 2022 7:26:57 PM - Markets open
VN-INDEX 1,285.45 +16.88/+1.33%
HNX-INDEX 311.17 -2.12/-0.68%
UPCOM-INDEX 95.29 +0.34/+0.36%
Banks in race for charter capital increase
VietNamPlus - 11/12/2021 1:44:19 PM
 (0 ratings. You must sign in to rate.)
 The State Bank of Vietnam (SBV) has officially approved plans to increase charter capital of many State-owned and private banks.
Since the beginning of the year, more than 20 banks have raced to raise their charter capital in many forms. As of September 30, VietinBank was the leading bank in terms of charter capital, with over 48 trillion VND (over 2.11 billion USD).
Banks have been requested to ensure the capital adequacy ratio (CAR) in line with Basel II standards as prescribed in Circular No. 41/2016/TT-NHNN no later than January 1, 2023. So far, 16 out of 35 banks have met this requirement.
The capital increase helps banks strengthen financial capacity and increase medium and long-term capital to expand their business activities when the ratio of short-term capital for medium and long-term loans is tightened in accordance with the roadmap stated in SBV’s Circular No. 08/2020/TT-NHNN dated August 14, 2020. Therefore, banks’ race to increase capital is forecast to continue in 2022.

Illustrative image (Photo: VNA)
After the first nine months of 2021, VietinBank surpassed BIDV to become the bank with the largest charter capital in the banking system. VietinBank has a bigger ambition to lift its charter capital to over 54.1 trillion VND by the end of the year.
VPBank ranked second when this bank completed the issuance of shares to increase its charter capital by over 19.75 trillion VND to 45 trillion VND.
However, the ranking of banks is likely to continue to change when recently Vietcombank's Board of Directors approved to increase charter capital in accordance with its approved plan. The bank is expected to add over 10.2 trillion VND to its charter capital, raising the total to more than 47.32 trillion VND. This is Vietcombank's first issuance of shares for dividend payout since 2011.
Previously, in mid-September 2021, the Prime Minister approved a plan to pump an additional 7.6 trillion VND into Vietcombank to maintain the State ownership ratio. If the capital increase is successful, Vietcombank will take the top position in the domestic banking system.
A number of banks with other big capital increase plans in 2021 include BIDV, ABBank, Sacombank, VIB, SCB, OCB, ACB and HDBank.
According to the Hong Kong Shanghai Banking Corporation (HSBC)’s report, the CAR of some Vietnamese State-owned banks remains low. Therefore, Vietnam needs to proceed with refinancing plans and accelerate the application of Basel II requirements, which have been delayed from 2020 to early 2023./.
Read original article here
Newer News
20/05 Vietnamese banks expected to get better credit ratings
18/05 Reference exchange rate down 20 VND
16/05 Reference exchange rate down 3 VND at week’s beginning
11/05 Reference exchange rate down 2 VND
09/05 Banks plan to increase charter capital to 2.8 billion USD in 2022
05/05 Reference exchange rate stays stable
04/05 Reference exchange rate down 12 VND after holidays
29/04 Reference exchange rate stays unchanged on April 29
13/04 Commercial banks tighten real estate lending
29/03 Fitch rates Vietnam at “BB”, with positive outlook
Older News
03/11 Ten-month state budget collection meets over 90 percent of estimate
27/10 New financial support package to create new momentum for business recovery
21/10 Overseas remittances to HCM City up 22 percent despite COVID-19
19/10 Draft circular to prevent banks from hiding bad debts
13/10 Reference exchange rate continues upward trend
11/10 Vietnamese currency forecast to strengthen against US dollar in 2021
08/10 Central bank proposes new law on bad debt settlement
06/10 PM orders accelerating public capital disbursement
05/10 Deposit interest rate to stay low as banks keep borrowing costs down
01/10 Official: Vietnam could achieve trade balance this year
Newsletter Signup
Top Stories
Steel prices cool down as input costs drop
Why the stock market sell-off when VN’s economy is strong?
Shareholders concerned about bank stocks
HoSE to provide odd-lot trading starting from June
SSC prioritises stabilising solutions for stock market
Market Update
Last updated at 3:05:02 PM
VN-INDEX 1,285.45 +16.88/+1.33%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.