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Sunday, June 23, 2024

SBV proposes increasing Agribank’s charter capital to over VND51 trillion

By Thai Huy

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HCMC – The governor of the State Bank of Vietnam, Nguyen Thi Hong, has proposed revising up the charter capital of the State-run Vietnam Bank for Agriculture and Rural Development (Agribank) by VND17.1 trillion to more than VND51.4 trillion in the 2021-2023 period.

Hong made the proposal at the ongoing sitting of the National Assembly (NA) in Hanoi. According to the NA Economic Committee, this capital injection would bolster Agribank’s financial strength and capital adequacy ratio (CAR) as required by law.

Agribank’s charter capital was VND34,330 billion by the end of 2022. If the proposal is passed, its charter capital would rise to VND51,430 billion.

The governor of the central bank suggested that VND5,753 billion be sourced from the State budget this year to increase the bank’s charter capital while the remainder will be allocated from the State budget in 2024.

The NA Economic Committee agreed to hike Agribank’s charter capital, saying this would ensure operational safety and improve its credit ratings.

By the end of 2021, Agribank’s CAR had stood at 7%, lower than other banks such as Vietcombank with 9.98%, VietinBank with 8.54% and BIDV with 8.4%.

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