Total assets of the whole banking system declined

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The latest updated data from the State Bank shows that by the end of July, the total assets of the whole banking system reached 12,831,052 billion VND.

Compared to the end of June, the total assets of the whole system decreased by nearly 9,792 billion dong, equivalent to a decrease of 0.08%.

The biggest drop was in state-owned commercial banks (commercial banks) with 19,012 billion dong. Next is joint stock commercial banks with 7,018 billion dong. Finance and leasing companies also recorded a decrease in total assets with a size of 1,291 billion dong.

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Total assets of the whole banking system declined.

On the contrary, the total assets of joint venture and foreign banks increased to 13,459 billion dong in July. Some other groups also recorded an increase including: people’s credit fund (up 1,978 billion dong), cooperative banks (1,482 billion dong), Bank for Social Policy (612 billion dong).

The decline in total assets of the whole banking system did not come from changes in credit balance. Statistics show that in 7 alone, credit balance of the whole system increased by 32,882 billion dong. Most likely this decline comes from the interbank channel or / and the investment channel of government bonds.

Both channels above are currently having extremely low yields, as the interbank interest rates have remained at record low levels and the government bond yields have also dropped sharply recently. This makes these two investment channels less attractive and may cause banks in particular and credit institutions in general to balance their investment scale.

Despite declining in July but accumulated in 7 months, the total assets of the whole banking system still increased by 2.01%. However, this increase is still very modest, only about one third of the increase in the same period last year.

Besides the data of total assets, the State Bank also publishes the capital adequacy ratios of the groups of banks. Accordingly, by the end of July, the capital adequacy ratio in the group of banks applying Circular 41/2016 averaged at 11.55%; of which, the state-owned commercial banks group was 9.56%, lower than the 10.72% rate of joint stock commercial banks.

Meanwhile, the capital adequacy ratio in the group of banks applying Circular 22/2019 averaged 10.52%; of which, the group of state-owned commercial banks at 10.38%, higher than the 9.86% rate of joint stock commercial banks.

Source: ndh.vn – Translated by fintel.vn