Banks more cautious with home loans | Company

Customers transact at a Sacombank office.

Hanoi (VNS/VNA) – Many banks have so far not only closed their doors to property development borrowers, but also restricted lending to home buyers.

The Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has not yet resumed lending to the real estate sector, except for employees and relatives of the bank to buy, build or repair real estate for residential purposes. , since the bank announced the suspension of home loans for retail customers in early April 2022.

According to Sacombank executives, the bank has focused on lending to manufacturing sectors, priority sectors including agriculture, rural areas, export, support industries, small and medium enterprises, high technology, trade and high value-added service industries such as export, service and logistics.

Sacombank and many other banks have suspended home loans, including single-family homes loans.

Trinh Bang Vu, head of the loan division of Shinhan Bank Vietnam, said that since the bank has used most of the credit quota granted by the State Bank of Vietnam (SBV), it is currently suspending disbursements so that the individuals buy homes.

Previously, Shinhan Vietnam was considered one of the foreign banks in Vietnam with the most competitive interest rates for home loans, at around 6-8% per annum.

An executive from another bank said his bank had stopped disbursing home loans since late March 2022 to meet SBV regulations on credit growth. Since then, the bank has focused on ready for production and business.

According to the SBV, at the end of April 2022, the total outstanding loans of banks to the real estate sector reached more than 2.28 quadrillion VND, up by 10.2% compared to the end of 2021 and representing 20.44% of the total. total outstanding loans in the economy. .

SBV Vice Governor Dao Minh Tu said the SBV had discovered that some banks were funding large amounts of real estate-related consumer loans to individual customers, which posed many potential risks in the event. sharp decline in the real estate market.

In the second half of 2022, many uncertainties are unfavorable to the economy. Therefore, the central bank will flexibly combine fiscal and monetary policies to ensure market capital supply and control inflation.

The SBV will aim to disburse loans in priority areas to help companies resume normal production and activities as before the pandemic, and to rebound the economy in addition to strengthening the control of high-risk sectors such as stocks. securities and real estate.

Nguyen Quoc Hung, general secretary of the Vietnam Banking Association (VNBA), said that up to 70% of assets as collateral to banks are right now immovablethe banks will therefore be the most vulnerable in the event of a fall in the real estate market if they continue to lend to industry.

Meanwhile, financial and banking expert Dinh The Hien said the credit growth rate of more than 10% per year in the real estate sector was not worrying, and still needed to be strictly controlled to steer loans to the residential sector with real needs but not. the speculative segment./.

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