VietNamNet Bridge - The total assets of the banking system reached nearly $310 billion last year, up 12.2% compared to 2013, State Bank of Vietnam (SBV) has reported.

Vietinbank continues to own the largest assets. The total assets of state commercial banks, including the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) and the Bank for Foreign Trade of Vietnam (Vietcombank), was up 14.82%. That of joint-stock commercial banks increased by 13.1% and of cooperative credit institutions by 20.69%.

As reported by the State Bank, as of December 2014, the capital adequacy ratio (CAR) of the banking system was recorded at 12.75%.

2015 will see a series of mergers and acquisition deals between credit institutions, which will form stronger banks, so the rank of total assets will change.

For example, the merger of Saigonbank and Vietcombank will increase the total assets of Vietcombank to VND656,520 billion.

This May, the Mekong Housing Development Bank (MHB) will be acquired by the Bank for Investment and Development of Vietnam (BIDV) and the total assets of BIDV after the merger will be VND695 trillion.

Petrolimex Group Commercial Joint Stock Bank (PG Bank) will be also merged into Vietinbank and after this transaction, Vietinbank will remain the leading bank among listed banks in terms of total assets.

The meetings of shareholders of Sacombank and Southern Bank approved the merger, which is awaiting approval from SBV.

The Mekong Development Commercial Joint Stock Bank (MDB) will be merged into Maritime Bank.

At least seven mergers have been revealed so far and two banks, Oceanbank and Vietnam Construction Bank (VNCB) have been nationalized this year.

ANTT