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Agribank is not the oldest bank and a small bank is even older than VietinBank

The oldest bank celebrates its 65th birthday, a series of banks over 30 years old

Agribank is the bank with the largest network today, present throughout the country with branches and transaction offices to each remote and remote area. With such brand coverage, many people mistakenly believe that Agribank is the oldest bank in Vietnam. However, in fact, Agribank has only been established for 34 years, less than BIDV and Vietcombank.

In which, BIDV is Bank oldest, was established on April 26, 1957. Up to now, BIDV has been over 65 years old, experiencing many different names suitable for each period of national construction and development, formerly known as Vietnam Construction Bank.

Vietcombank is the second oldest bank, established in 1963, now 59 years old.

Agribank and VietinBank were both established in 1988, which means 34 years of establishment and development.

Notably, a small, well-known bank that was established before both Agribank and VietinBank is Saigonbank. This bank was the first Vietnamese joint stock bank established in the joint stock banking system in Vietnam, established on October 16, 1987, before the Company Law and the Banking Ordinance.

Along with the above banks, there are a number of other banks established in the 80s such as CBBank, Eximbank, and HDBank.

In the period 1990-1995, the new banking system witnessed an explosion in the number of established banks. This phase is associated with the event that the State Council signed the ordinance allowing the two-tier banking system to operate in our country, thereby opening a new page for the banking industry. Therefore, 2020-2025 will have a series of banks that will celebrate their birthday at the age of 30; In 2022 alone, there are DongABank, NamAbank, and VietCapitalBank.

Many years are not necessarily grown up, “born late after giving birth” but “have martial arts”

The banking system has experienced many ups and downs associated with the development of our country’s economy. The position of banks in the market also changes very quickly when the times and business opportunities change rapidly.

It is not difficult to see that there are many names that have existed for a long time but have not been able to lead in business performance, and are increasingly regressing in the rankings. And there are also banks that, although established for more than 10 years, know how to seize opportunities and have effective development strategies to rise to the top.

For example, Saigonbank is one of the big brothers in the industry in terms of age, more than Agribank or Vietinbank, but currently Saigonbank’s asset size is still at the last position in the ranking. By the end of 2021, Saigonbank’s total assets were only VND 24,609 billion. Charter capital also reached just over 3,000 billion, the lowest group in the system.

And on the other hand, there are a few banks that are less than 20 years old but are also among the top banks with total assets of over 10 billion USD. VIB currently has total assets of 309,517 billion VND, followed by TPBank with 292,827 billion VND. In particular, TPBank has become the bank with the largest growth in total assets in the whole system, more than many “big brothers” in the industry with nearly 42%.

Although only established for 14 years, TPBank has become a leading bank in the digital transformation trend of the banking industry, the profit growth rate has always maintained a very high level. This result of TPBank has “surpassed” many 30- to 40-year-old brothers.

The position of private banks changes very quickly, but the “Big 4” group BIDV, Agribank, VietinBank, Vietcombank is still quite solid, despite the volatile market over the past decades, worthy of the “old age” ” mine.

Currently, BIDV, Agribank, Vietinbank and Vietcombank are the banks with the largest total assets, together accounting for 51.12% of the total assets of the whole system.

Vietcombank is the most profitable bank. VietinBank is often in the top 2-top 3 in terms of profits. Agribank shows its role as the main source of capital for agriculture and rural areas of the country. BIDV is the bank with the largest scale in terms of total assets, charter capital, and strong profit in 2021.

Few people know: Agribank is not the oldest bank and a small bank is even older than VietinBank - Photo 1.

Source: synthesized by CafeF

https://cafef.vn/it-nguoi-biet-agribank-khong-phai-ngan-hang-lau-doi-nhat-mot-ngan-hang-nho-con-nhieu-tuoi-hon-ca-vietinbank- 20220323151107891.chn


According to Hieu Lam

Business & Marketing

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