Commercial banks tighten home lending
HANOI: Some banks have temporarily stopped lending to the property sector in the short term in the wake of the State Bank of Vietnam’s (SBV) policy on controlling credit growth in risky areas.
Sacombank recently instructed all its branches and dealing desks to focus lending on a number of production and priority industries such as agriculture, rural development, exports, production support, small and medium enterprises, high-tech applications, trade, services and logistics, reports vietnambiz.vn.
In particular, Sacombank has ordered branches and offices not to finance the real estate sector until the end of June, except for staff and relatives of the bank to buy, build or repair houses for living purposes. .
Techcombank has also recently informed its business units to control the loan disbursement limit for the purchase of real estate products.
The bank said it would suspend making home loans from March 25 and consider disbursement in the second quarter.
The banks said their move was to ensure compliance with SBV regulations on controlling credit growth.
In addition, the banks’ credit growth quota reserved for the real estate sector capped banks’ plans.
The reopening of the economy after a long period of social distancing to control the Covid-19 pandemic has boosted demand for credit in the first months of this year.
According to the latest data from the General Statistics Office, as of March 25, economy-wide credit growth reached 4.03%, the highest growth rate in the past five years.
In January alone, credit growth hit a 10-year high, as it jumped 1.9% from the end of 2021.
In the latest banking sector strategy, the SBV stated that credit should be channeled to productive and commercial industries with positive impacts on socio-economic development. He also urged banks to refrain from extending credit to companies operating in risky areas, such as real estate, securities, corporate bonds or build-operate-transfer and construction projects. – transportation transfer.
According to expert Can Van Luc, SBV data showed that the growth rate of home loans has tended to slow down in recent years, from 26% in 2018 to 12% in 2020. — Vietnam News/ANN