Banks more cautious with home loans
VIETNAM, July 23 –
HÀ NỘI — So far, many banks have 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 individual home loans.
Trịnh Bằng Vũ, head of 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 Việt Nam 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 production and business lending.
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 VNĐ, up by 10.2% compared to the end of 2021 and representing 20.44% of the outstanding amount. total loans. in the economy.
SBV Deputy Governor Đào Minh Tú said that 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 of strong 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.
Nguyễn Quốc Hùng, general secretary of the Vietnam Banking Association (VNBA), said that up to 70% of banks’ collateral assets are currently real estate, so banks will be the most vulnerable if the market real estate declines if they continue to lend the industry.
Meanwhile, financial and banking expert Đinh Thế Hiển said that the credit growth rate of more than 10% per year in the real estate sector is not worrying, and that it still needs to be strictly controlled to guide loans to the residential sector with real needs but not the speculative segment. —VNS