Việt Nam’s four biggest State-owned banks have an urgent need for capital increase in 2023 as their charter capital is too low, with some unable to ensure the regulated minimum capital adequacy ratio (CAR), according to industry insiders
Despite efforts to increase cheap capital sources, many banks reported their current account savings account (CASA) rate in the second quarter of 2022 declined compared to the previous quarter.
Banks have been increasing the attraction of deposits to have enough capital for the credit needs of customers. Credit demand is expected to increase from the first quarter of this year.
The Government is directing ministries and agencies to raise capital for State-owned commercial banks through the use of dividends or share sales this year.
The Vietnam International Bank (VIB) earned VND940 billion (US$42
million) in accumulated profit before provision from January to
September, up 25.9 per cent compared to the same period last year.