Capital business is a regular operation of commercial banks, but for the Co-operative Bank of Vietnam (Co-opBank), this activity only began to develop in 2013, when the Central People’s Credit Fund transformed its operational model and changed its name to Co-opBank. This was a historic milestone affirming the sustainable and safe development that Co-opBank has strived to achieve since its establishment (1995).
n fact, since its inception, Co-opBank had engaged in capital business; however, due to limited charter capital—only VND 103 billion (in 1995) increasing to VND 112 billion (in 2007), and total assets from VND 120 billion (in 1995) to VND 6,248 billion (in 2007)—the outstanding balance of this activity was insignificant, only a few dozen billion VND. From 2007 to 2012, Co-opBank’s total assets gradually increased from VND 6,248 billion (2007) to VND 14,466 billion (2012), and the capital business segment started to strengthen, with outstanding balances increasing from several hundred billion VND to VND 2,500 billion (2012). However, operations remained relatively simple, mainly consisting of deposits at other credit institutions, with almost no transactions in securities trading.
With the turning point of transforming into the Co-opBank model (2013), in addition to core tasks related to PCFs, Co-opBank was authorized by the State Bank of Vietnam (SBV) to perform the operations of a commercial bank. Since then, Co-opBank has gradually transformed, enhancing capital business activities year by year, fully implementing diverse types of transactions, efficiently utilizing capital sources through various capital market channels, and in compliance with SBV regulation.
After 30 years of effort and affirmation, capital business has now become one of Co-opBank’s key operations: open market bidding; providing derivative products; purchasing/selling securities in primary and secondary markets; interbank deposits and loans; discounting and rediscounting valuable papers. Deposit/lending turnover has reached over VND 216,040 billion/year; deposit/borrowing turnover VND 102,915 billion/year; security purchase turnover VND 6,800 billion/year; security sale turnover VND 10,018 billion/year; SBV bill trading turnover VND 99,500 billion/year; open market bidding turnover VND 48,496 billion/year. To ensure effective capital business operations, in addition to flexibly applying market capital channels, Co-opBank has implemented many fundraising programs/products suitable for different customer segments, actively servicing PCFs to attract deposits, increase total assets, and thereby expand capital business volume and balances.
The leadership team and staff of the Capital and Financial Market Committee of Co-opBank
In addition to promoting capital business, Co-opBank has gradually applied digital technology and management software to manage risks in business operations, issuing numerous documents/regulations to ensure that capital business activities remain safe, sustainable, and efficient.
From initially serving only member PCFs, individual customers, and some economic organizations, Co-opBank has now expanded to include many reputable financial institutions as clients, with transaction limits granted up to VND 21,000 billion. Co-opBank itself has granted transaction limits to reputable financial institutions up to VND 35,500 billion. These two-way capital transactions have elevated Co-opBank’s position in the financial market. Thanks to diverse and flexible interbank market product trading, Co-opBank has maintained stable capital operations, optimized funding costs, and improved business performance.
Furthermore, leveraging operations such as open market transactions, refinancing, discounting, rediscounting, and providing derivative products are selectively implemented depending on capital conditions in each period.
Capital business has become a distinctive highlight in the colorful picture of Co-opBank. In the coming period, Co-opBank will continue to build upon its achievements, maintaining unity, creativity, and determination to excellently fulfill assigned tasks, striving to become one of the strongest units in Vietnam’s banking system, making positive contributions to the economy and community.
Customers transacting at Co-opBank Branch
