Of the 2,330 trillion VND (98.07 billion USD) in property loans, two-thirdswent to personal purchase, and the rest to development, SBV Governor Nguyen ThiHong said at a forum on July 15.
Property accounted for 20.66% of all loans, she added.
The figures were released after property developers and experts had raisedconcerns about the central bank’s tightened policy on property development thisyear.
Some developers have said they would slow down their investment in the secondhalf of the year due to lack of funding as banks said they have reached theirlimits on property loans.
Hong said although property loans play an important role in the economy, theyneed to be controlled due to high risks.
Property loans are often mid- or long-term, with 94% of current outstandingproperty loans to be paid back in 10-25 years. These loans stem from short-termbank capital, with 80% comprising short-term deposits.
This means that if credit organisations fail to keep an appropriate balancebetween mobilising capital and providing credit, they could face risks inliquidity and not have enough money for customers to withdraw, she added.
The central bank’s policy is to steer credit flow toward manufacturing andbusiness, especially to the sectors prioritized by the government, Hong said.
Prime Minister Pham Minh Chinh asked the SBV to monitor, control and restructure credit for thereal estate sector to ensure proper use of capital and prevent risks to themarket. Banks need to be flexible in offering property loans to keep the sectorgrowing while limiting risks, he said.
Projects that meet the legal requirements should receive funding, andcredit should also go toward social housing projects to increase supply, headded.
The central bank maintains a credit growth target of 14% for the economythis year, compared to 13.6% in 2021 and 12% in 2020.
Credit growth was 9.35% in the first six months./.