The banking system will increase capital by nearly $2.8 billion this year

The season of the shareholders meeting of the bank is slowly passing, along with ambitious business plans set out for this year, plans to increase capital scale have also been approved. It is estimated that the banking system will add nearly $2.8 billion in charter capital this year.

Issuance of shares to pay dividends; private offering; issuing shares to foreign strategic investors… a series of capital raising scenarios were approved during this year’s shareholders’ meeting. Among 27 banks on the floor, 17 have submitted plans to increase capital, with an additional amount of about $2.8 billion.

According to research by the credit rating agency Fitch Ratings, before this capital increase, the CAR capital adequacy ratio of state-owned banks was at 9.2%, while that of joint stock banks was 11.4%. According to this organization, the capital size of Vietnamese banks can increase by about 10.7 billion USD in the next 2-3 years to reach the operating safety ratios as prescribed.

Tamma Febrian – Partnership Director – Financial Institutions, Banks – Fitch Ratings said: “Credit growth in Vietnam has been very fast in recent years, requiring banks’ capital scale to also expand. , ensuring safety ratios. Our view is that Vietnam is a developing economy, banks still have a lot of room to raise capital and improve CAR.”

The capital scale increased from around 20%, 30% and the highest up to 65%. If the capital increase is carried out as planned, the order of capital size of banks in the market will be disturbed and the leading position will belong to VPB after many years of international joint stock commercial banks. business holds. The operating picture of banks will therefore also have many changes.

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