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 statistics from Viet Dragon Securities Company (VDSC), 26 listedbanks by the end of 2020 increased their total credit market share to 71.3 percentfrom 65.4 percent at the end of 2015.
Of which, the group of private banks, whose credit market share is more than 2 percenteach, posted a 3.5 percent growth in credit market share in the period, VDSCstatistics showed.
In which, MBBank ranked first with an increase of 90 basis points, followed byTechcombank and VPBank with rises of 86 and 78 basis points, respectively.
The three banks also had compound annual credit growth of more than 20 percentwhile their capital adequacy ratios also topped the list.
Sacombank was the only bank to lose credit market share with a reduction of 2basis points.
VDSC’s statistics also showed banks made a strong shift to corporate bonds in2020 so as to spur credit growth in the year when loan demand was affected adversely.The contribution rate of corporate bonds to banks’ credit growth in 2020 rangedfrom 20-38 percent.
According to VDSC, Vietnam’s economy has been heavily dependent on credit.Therefore, to maintain the country’s GDP growth rate of 6-8 percent in thecoming years as projected, VDSC estimated the credit growth of the bankingindustry to stay at double digits.
VDSC forecast credit growth of the banking industry this year would be 13.1 percenton average. Major private banks, including Techcombank, MBBank, VPBank and ACB,are expected to maintain their credit growth higher than the industry’s averagerate.
The State Bank of Vietnam (SBV) targeted a credit growth rate of 12 percentthis year, equivalent to the growth of 12.13 percent last year. However, itsaid the goal was not a fixed figure, as it might adjust it if necessary.
According to SBV Deputy Governor Dao Minh Tu, in case the COVID-19 pandemic istotally controlled, and the economy needs fast recovery, leading to increasedcredit demand, the SBV will expand credit to support businesses and economicrecovery. Vice versa, if there are signs that the economy needs tighter controlto curb inflation, the credit growth will be slashed.
The support for businesses during the post-pandemic period was defined as oneof the major tasks of the banking sector in 2021, Tu noted./.
