The loan-to-deposit ratio (LDR) of eight State-owned commercial banks has improved significantly in recent months, making the industry more optimistic about keeping it at a maximum of 90 per cent. — Photo diendandoanhnghiep.vn

HA NOI (Biz Hub) — The loan-to-deposit ratio (LDR) of eight State-owned commercial banks has improved significantly in recent months, making the industry more optimistic about keeping it at a maximum of 90 per cent.

According to the latest statistics from the State Bank of Viet Nam (SBV), the LDR of these banks at the end of June had dropped to 93.93 per cent, the lowest level over the past 10 months.

Expert said the fall was significant as the LDR had remained high, at 99.11 per cent, earlier this year.

For many years, the LDR of the banks has remained high, even reaching 110.01 per cent in December 2011, causing high risk for these banks.

While restructuring the banking industry in 2011-15, the SBV targeted reducing the LDR of State-owned commercial banks to a maximum of 90 per cent. However, it failed to meet this target.

According to experts, the improvement of the LDR in the first half of this year was attributable to good liquidity and a good balance between deposits and credit in the affected banks.

BIDV, for example, reported that its deposits grew 13 per cent in the first half of the year, while credit rose by only 8.3 per cent. The deposit and credit ratios at Vietinbank were 9.6 per cent and 7.7 per cent, respectively.

At Vietcombank, the capital mobilisation ratio rose 6.72 per cent in H1, while the credit increased 10.76 per cent. However, the gap had little effect on the bank's capital source balance as its LDR was often under 80 per cent in recent years. Vietcombank's total mobilised capital by the end of June was VND535.203 trillion (US$23.89 billion), while its outstanding loans were only VND437.58 trillion.

Viet Nam has seven State-owned commercial banks: BIDV, VietinBank, Vietcombank and Agribank, as well as Construction Bank, GPBank and OceanBank. — VNS