return icon Vietnamnet.vn

Banks more cautious with home loans

Many banks have so far not only closed their doors to real estate development borrowers but also restricted loans to home buyers.
Customers make transactions at the Sacombank office

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

According to Sacombank’s leaders, the bank has focused on lending to manufacturing sectors, prioritised sectors, including agriculture, rural areas, export, supporting industries, small and medium-sized enterprises, high-tech enterprises, trade and service industries with high added value such as export, service and logistics.

Sacombank and many other banks have suspended real estate lending, including individual home loans.

Trinh Bang Vu, head of Shinhan Bank Vietnam’s loan division, said as the bank used up most of the credit quota granted by the State Bank of Vietnam (SBV), it is currently suspending disbursement for individuals to buy houses.

Previously, Shinhan Vietnam was considered one of the foreign banks in Việt Nam applying the most competitive interest rates for home loans, at about 6-8 per cent per year.

A leader of another bank said his bank had stopped disbursing real estate loans since the end of March 2022 to meet the SBV’s regulations on credit growth. Since then, the bank has focused on lending for production and business.

According to the SBV, by the end of April 2022, banks’ total outstanding loans to the real estate sector reached more than VND2.28 quadrillion, up 10.2 per cent compared to the end of 2021 and accounting for 20.44 per cent of total outstanding loans in the economy.

SBV’s deputy governor Dao Minh Tu said SBV found some banks funded large amounts of consumer loans that were related to real estate to individual customers, which had many potential risks if there was a sharp decline in the real estate market.

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

SBV will aim to disburse loans to prioritised areas to help firms return to normal production and business as before the pandemic, and rebound the economy besides strengthening the control of high-risk sectors such as securities and real estate.

Nguyen Quoc Hung, general secretary of the Vietnam Banks Association (VNBA), said up to 70 per cent of collateral assets at banks are currently real estate, so banks will be the most vulnerable if the real estate market declines if they continue to lend the industry.

Meanwhile, finance and banking expert Dinh The Hien said the credit growth rate of more than 10 per cent per year in the real estate sector was not worrisome, and it still needed to be strictly controlled to direct loans to the residential sector with real needs but not the speculative segment. 

Source: VNS     

MORE NEWS

Foreign hi-tech firms expand investment in Vietnamese market

Molex, the world’s leading supplier of connectors and interconnect components, has unveiled its ambitions to expand its existing manufacturing plant in the Vietnamese market by developing its plant in Hanoi.

VIETNAM BUSINESS NEWS OCTOBER 4

Hai Phong lures more than 1.24 billion USD in first nine months

Vietnam rakes in US$16.05 billion from tourism in nine months

Vietnam earned some 394.2 trillion VND (16.05 billion USD) from tourism in the first nine months of this year, equivalent to 78% of the figure recorded in 2019 before the COVID-19 pandemic broke out.

VIETNAM NEWS HEADLINES OCTOBER 4

Vietnam invests in 10 energy technologies

Vietnamese poetry collection published in Canada

A poetry collection from five female translators based in Hanoi, entitled Ngũ Sắc Ánh Sáng (5 Sights of Light), has been introduced to Canadian readers by Ukiyoto Publishing.

Multi-billion thermal power project needs more capital

The Ministry of Industry and Trade (MOIT) has asked for ministries' opinions on solutions to problems related to the balance sheet of the Vung Ang 1 thermal-power plant.

The best September photos on VietNamNet

Hot air balloons with the Vietnamese national flag of 1,800m2 on the banks of the Saigon River, Typhoon Noru making landfall in Quang Nam Province, the roofs of many houses being blown away...

BSR to expand Dung Quat Oil Refinery

The Ministry of Industry and Trade (MOIT) has asked Binh Son Refining and Petrochemical JSC (BSR) to clarify some issues related to its project on expanding Dung Quat Oil Refinery.

Dutch conductor to lead concert at Opera House

Conductor Leon Bosch from the Netherlands will lead a concert featuring masterpieces by European composers at the HCM City Opera House on Saturday, October 8.

‘578’ to represent Vietnam at Oscars

An action film starring Miss Universe Vietnam 2018, H'hen Niê, 578: Phát Đạn Của Kẻ Điên (578: Magnum), has been selected as Vietnamese representative at the 95th Oscars, 2023.

USD surges to VND24,000, US$1.7 billion withdrawn from circulation

The State Bank of Vietnam (SBV) withdrew nearly VND41 trillion ($1.7 billion) through open market operations as the US dollar rose to over VND24,000 on September 26-30, 2022.

HCM City to build a series of new traffic projects

HCM City is speeding up procedures to start the construction of key traffic works at gateways by the end of the year, according to HCM City's Department of Transport.

Burning garbage in Hanoi threatens residents' health, property

There have been consecutive fires caused by people's poor awareness, who were burning garbage and straw in residential areas, causing fires recently in Hanoi.

New cargo airline still waiting for license

After the Prime Minister agrees on the establishment of IPP Air Cargo, the Ministry of Transport (MOT) will implement procedures to grant a license to the air carrier, according to MOT Deputy Minister Le Dinh Tho.

Master plan for Mekong Delta focuses on infrastructure development

The Master Plan for the Mekong Delta designed for 2021-2030, with a vision to 2050, is focused on infrastructure development.
back_to_top