|A customer at a branch of FE Credit, the consumer finance arm of VPBank. Several banks are now keen on establishing their own consumer finance companies as the industry seems set for a long boom phase.—Photo tieudungplus.vn|
HCM CITY – Several banks are keen to establish consumer finance arms to grab a bigger share of a market that is expected to reach VNĐ1,000 trillion (US$4.38 billion) by 2020 and grow at 29 per cent annually.
At its annual general meeting last month Orient Commercial Bank tabled a plan to set up a finance company this year.
Trịnh Văn Tuấn, its chairman, was quoted by Đầu tư Chứng khoán (Securities Investment) newspaper as saying the bank’s consumer credit business is expanding rapidly and so it needs an independent company to streamline the business and improve risk management.
The lender plans to either establish a wholly-owned subsidiary with a charter capital of VNĐ500 billion ($22 million) or acquire at least 70 per cent in an existing finance company.
Asia Commercial Bank (ACB) too plans to set up a financial company with a charter capital of VNĐ500 billion.
News reports had suggested that ACB wanted to acquire the Post and Telecommunication Finance Company (PTFinance), but…