Business

Bank loans to real estate business rise in H1 2023

Outstanding loans to the real estate sector in the first half of 2023 surged by 17.4%, exceeding the 10.7% growth rate of the whole of 2022, according to data from the State Bank of Vietnam (SBV).
Bank loans to real estate business rise in H1 2023 ảnh 1A customer borrows at a SHB’s transaction office in Hanoi. Outstanding loans for real estate of SHB in H1 2023 increased by 88.8% compared to the beginning of the year. (Photo: VNA)
Hanoi (VNS/VNA) - Outstanding loans to the realestate sector in the first half of 2023 surged by 17.4%, exceeding the 10.7%growth rate of the whole of 2022, according to data from the State Bank of Vietnam(SBV).

Data of 17 listed banks showed their total outstanding loans forthe real estate sector in the first half of 2023 reached 426 trillion VND, up36.2% compared to the end of last year. The proportion of the banks’ loans inthis sector also increased from 8% at the end of 2022 to 10% at the end of thesecond quarter of 2023.

The rise showed banks were still continuing to inject capital intothe real estate sector even though the real estate market had not improvedmuch.

According to the data, 14 out of the 17 banks recorded an increasein outstanding loans for real estate compared to the beginning of the year.

The highest growth rate belonged to SHB with a rise from more than31 trillion VND to 59 trillion VND, equivalent to an increase of 88.8%.

HDBank and Sacombank also recorded rapid growth of outstandingloans for real estate, reaching about 56% each.

Meanwhile, outstanding loans for real estate businesses at manybanks, such as LPBank, PG Bank and VIB, recorded a sharp decrease of 49.1%,34.5% and 14.8% compared to the beginning of the year, respectively.

At Techcombank, which was the leader in real estate lending, theproportion of loans to  real estate sector accounted for about 33% of thebank's total loans to customers.

In meetings with firms, representatives of the State Bank ofVietnam (SBV) has repeatedly affirmed that the central bank would not tightenreal estate lending. In the current context of slow credit growth, banks areincreasingly focusing on easing access to capital for firms, including those inreal estate.

Most recently, after recommendations from firms and the HCM CityReal Estate Association, the SBV adjusted Circular 06, suspending theimplementation of three provisions that have a significant impact on the realestate market.

According to the ACB Securities Company (ACBS), the suspension ofthe provisions will support real estate firms to restructure.

In addition, banks also have a legal corridor to be able to lendto real estate buyers who have not yet met the business conditions (saleslicence), but have qualified for legal conditions.

The suspension will also assist real estate firms in borrowing forinvestment, an increase of land area or investment in a new project. Most realestate firms can benefit from this circular.

ACB’s analysts also believe that the suspension will contribute tosupporting credit growth, which has been at a low level recently. The credit atthe end of July increased by only 4.56% compared to the beginning of the year,and decreased by 0.17% compared to the end of June./.
VNA
#outstanding loans #bank loans #real estate #State Bank of Vietnam #SHB #HDBank #Sacombank #credit growth #updated Vietnam news #Vietnamplus #Vietnam News Agency
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