A bank employee counts money. Banks' total assets reached a record-high value last year. — Photo nganhangplus.com

HA NOI (Biz Hub)  The total assets of the domestic credit institution system were worth nearly VND6.52 quadrillion (US$310.48 billion) at the end of last year, a 12.2 per cent increase over 2013.

The value of the assets was a record high, news website ttvn.vn reported, citing the latest data from the State Bank of Viet Nam (SBV).

In 2014, State-run banks' assets grew 14.82 per cent year-on-year to touch nearly VND2.88 quadrillion ($137.14 billion), while the value of the assets of joint-stock banks rose by 13.1 per cent year-on-year to reach roughly VND2.78 quadrillion ($132.38 billion). Joint-venture and foreign banks saw no changes in their asset values.

The combined ownership capital of credit institutions hit about VND496.57 trillion ($23.65 billion), a year-on-year increase of 4.36 per cent. Their charter capital totalled VND435.65 trillion ($20.74 billion), up 3.29 per cent year-on-year.

These capital growth rates were significantly lower than those recorded in previous years. The growth of ownership capital and charter capital of credit institutions was nearly nine per cent and 11.2 per cent respectively in 2012, and 9.6 per cent and 8.1 per cent respectively in 2013.

Market observers said that while a bank's capital is very important in assuring depositors' interests in case of risks, the slowing down of capital expansion last year showed that lenders were facing difficulties in luring investment capital.

Many banks reportedly failed to implement plans to increase capital during 2014. At the beginning of this month, SBV announced that it will take over the Viet Nam Construction Bank, which is being restructured, to restore its payment capacity.

The capital adequacy ratio (CAR) of the credit institution system reached 12.75 per cent at the end of last year, significantly higher than the expected level of nine per cent, according to the report.

The CAR was 9.4 per cent for State-run banks, and 12.07 per cent for joint-stock banks.  VNS