The State Bank of Vietnam (SBV) has said the drop in total equity of local commercial banks is less than previously announced.
In January this year, the total equity of the local commercial banks scaled down some VND16.3 trillion ($77.78 million) over the previous month, instead of a whopping month-on-month drop of VND31.2 trillion ($148.95 million).
The previously publicized data was wrong as a number of local lenders provided inaccurate information to the central bank, SBV said.
With the newly revised data, as of January, the figures on total equity of the local joint stock commercial banks increased to VND166.79 trillion, instead of VND151.38 trillion, as previously announced, an increase of VND15.45 trillion.
Therefore, the minimum capital adequacy ratio (CAR) increased to 13.19 percent, up from 11.63 percent as originally announced.
Thus, compared with December 2012, the total equity of joint stock commercial banks was still VND11.45 trillion less than their total charter capital.
Total equity of local financial and financial leasing companies was adjusted to VND10.22 trillion compared to the previously announced VND10.93 trillion, down VND709 billion against the previous month.
Previously, SBV announced that total assets of local banks in January dropped over VND100 trillion ($77 billion) in just one month compared to December 2012, down 2 percent month on month, to under VND5,000 trillion ($238.7 billion).
In particular, the total assets of state-owned commercial banks (SCBs) fell VND83.75 trillion to VND2,118 trillion, lower than the total assets of the joint-stock commercial banks.
By the end of 2012, total assets of the SCB group were VND42 trillion higher than that of commercial banks.
Total assets of the group of commercial banks decreased by 31.2 trillion in January, equivalent to a 1.45 percent fall compared with the end of 2012.
Meanwhile, total assets of the group of venture and foreign-owned banks increased by nearly VND12.7 trillion, while that of the group of financial leasing companies and cooperative credit institutions went up a total of more than VND340 billion.
Total charter capital of the banking system hardly changed in the first month of 2013, with the exception of a VND1 trillion rise in the group of commercial banks.
However, the equity of credit institutions declined, with the most serious drop found in the group of commercial banks. According to the SBV, the equity of the group fell VND30.8 trillion in January, equivalent to a 17.4 percent drop compared with the end of 2012, to VND151.34 trillion.
The total equity of SCBs also fell by VND2.464 trillion in the same period, down 1.8 percent month on month. The two groups of banks brought the total equity of the whole system down more than VND32 trillion, or 7.5 percent, compared to the end of last year.
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Bad debt falls According to the Government Office, the non-performing loans (NPLs) of the banking system fell from 8.6 percent in the first quarter of 2012 to 6 percent by the end of February 2013. In terms of absolute number, as total NPLs decreased from 8.6 percent to 6 percent, the bad debt of the whole system has fallen by VND53.68 trillion. According to Vietcombank Securities Co (VCBS), this bad debt reduction is due to two reasons: banks have dealt with some of their NPL by their own loan loss provisioning, and many of them have carried out debt restructuring under the guidelines of SBV. According to the financial statements of a number of major banks, such as VCB, CTG BIDV, MBB, ACB, EIB and STB, which make up about 40 percent of the total outstanding loans of the whole system, the total loan loss provisioning used to deal with their NPLs was about VND15.5 trillion. |
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