|By the end of December, the capital adequacy ratio (CAR) of the banking system also improved, inching up to 13 per cent, much higher than the 9 per cent rate allowed by the central bank.— Photo nhandan
HA NOI (VNS) — Banking assets by end of 2015 rose 12.35 per cent year-on-year to more than VND7,319 trillion (US$332 billion) thanks to the improved business performance of most of the credit institutions.
According to a report released by the State Bank of Viet Nam, December 2015 saw the highest rise of total assets in the year of the banking system. The assets in December alone surged sharply by VND298.29 trillion, accounting for more than 37 per cent of the rise in the whole year.
Assets of State-owned banks increased 16.57 per cent to VND3,304 trillion. State-owned banks where the government holds majority stakes include Agribank, Vietcombank, VietinBank, and Bank for Investment and Development of Viet Nam (BIDV), in addition to Viet Nam Construction Bank, GPBank and OceanBank.
Assets of joint stock commercial banks also rose 8.93 per cent to VND2,928 trillion while those of joint ventures, 100 per cent foreign-owned banks and foreign banks' branches increased 7.63 per cent to VND755.58 billion.
By the end of December, the capital adequacy ratio (CAR) of the banking system also improved, inching up to 13 per cent, much higher than the 9 per cent rate allowed by the central bank.
However, the ratio of short-term funding to be used for medium- and long-term loans also increased to 31 per cent from 28.93 per cent a month earlier, but remained at the safe level, according to the report.
Under a survey of credit institutions released by the central bank last month, 81 per cent of the institutions also said their performance in 2015 was an improvement over the previous year, with 34 per cent of them saying the improvement was "significant."
According to the survey, thanks to last year's good results, a growing economy and the ability of businesses to take loans in 2016, many credit institutions are optimistic about their business this year. Of the surveyed institutions, 93 per cent said their business performance this year would be better than 2015, while 32 per cent of them expected "a much better result."
The demand for banking services, especially for borrowing, is expected to increase further this year after last year's growth. — VNS