Increasing chartered capital is the most important task for the four state-owned commercial banks. If their CARs are lower than Basel II standards, they will have to restrict lending.
FiinGroup’s president Nguyen Quang Thuan said the ratio is calculated based on more than 1,000 listed enterprises.
Total assets of commercial banks under state ownership accounted for 42.7% of the total in the banking sector, followed by joint stock commercial banks with 41.6%.
The move is aimed to help develop the automotive supporting industries, particularly as Vietnam still has to import massive basic materials for domestic car production.
The total assets of commercial banks under state ownership accounted for 43.4% of the total of the banking sector, followed by joint stock commercial banks with 41.4%.
This resulted in Vietnam importing an average of 9,230 cars per month and over 300 cars per day, and car imports of nearly US$1.75 billion during the period, up 250% year-on-year.
Vietnam has become a large market which earns billions of dollars for Thai and Indonesian manufacturers each year.
Experts can see high risks in using money from the state budget to increase the charter capital of state-owned banks.
Banks, which all reported big profits for 2018, are using the money to improve their financial capability.