Techcombank's credit market share increased 86 basis points in the past five years. Photo nhipcaudautu.vn) Hanoi (VNS/VNA) - Private banks have posted significant growth in creditmarket share in the past five years.
According to statisticsfrom Viet Dragon Securities Company (VDSC), 26 listed banks by the end of 2020increased their total credit market share to 71.3 percent from 65.4 percent atthe end of 2015.
Of which, the group ofprivate banks, whose credit market share is more than 2 percent each, posted a3.5 percent growth in credit market share in the period, VDSC statistics showed.
Among those banks, MBBankranked first with an increase of 90 basis points, followed by Techcombank andVPBank with rises of 86 and 78 basis points, respectively.
The three banks also hadcompound annual credit growth of more than 20 percent while their capitaladequacy ratios also topped the list.
Sacombank was the onlybank to lose credit market share with a reduction of 2 basis points.
VDSC’s statistics alsoshowed banks made a strong shift to corporate bonds in 2020 so as to spurcredit growth in the year when loan demand was affected adversely. Thecontribution rate of corporate bonds to banks’ credit growth in 2020 rangedfrom 20-38 percent.
According to VDSC, Vietnam'seconomy has been heavily dependent on credit. Therefore, to maintain thecountry’s GDP growth rate of 6-8 percent in the coming years as projected, VDSCestimated the credit growth of the banking industry to stay at double digits.
VDSC forecast creditgrowth of the banking industry this year would be 13.1 percent on average.Major private banks, including Techcombank, MBBank, VPBank and ACB, areexpected to maintain their credit growth higher than the industry’s averagerate.
The State Bank of Vietnam(SBV) targeted a credit growth rate of 12 percent this year, equivalent to thegrowth of 12.13 percent last year. However, it said the goal is not a fixedfigure, as it might adjust it if necessary.
According to SBV DeputyGovernor Dao Minh Tu, in case the COVID-19 pandemic is totally controlled, andthe economy needs fast recovery, leading to increased credit demand, the SBVwill expand credit to support businesses and economic recovery. Vice versa, ifthere are signs that the economy needs tighter control to curb inflation, thecredit growth will be slashed.
The support for businessesduring the post-pandemic period was defined as one of the major tasks of thebanking sector in 2021, Tu noted./.
