Real estate borrowings in the first quarter account for 18pct of total outstanding loans

22-May-2019 Intellasia | Lao Dong online | 6:00 AM Print This Post

By the end of the first quarter of 2019, outstanding loans of real estate with purposes of business and self-use increased 3.29%, accounting for 18.08 percent of the total outstanding loans of the whole system.

According to the report submitted to the National Assembly, the State Bank of Vietnam (SBV) said that on the basis of the target of economic growth and inflation, SBV aimed for annual credit growth target with flexible adjustment following actual situation.

In 2018, credit of the whole system increased 13.89 percent compared to the end of 2017. As of April 29, credit growth reached 4.44%. SBV assessed that in recent years, although credit growth was lower and more tightly controlled, economic growth continued to rise, indicating that credit was effectively allocated and of high quality.

Credit structure continued to have a positive adjustment, in which credit focused on production, business sectors and priority areas. Credit in agriculture and rural areas accounted for the highest proportion of 25.1%, followed by consumer credit (19.66%), real estate (with purposes of business and self-use) (18.08%) and small and medium size enterprises (18%).

Although credit for real estate increased in the early months of the year, SBV also stated that credit granting for the purpose of business had many potential risks to banks.

The legal regulations on the real estate market are still inadequate, especially the regulation of adjustment for some new types of real estate. Moreover, the real estate investment is an channel that expects high profitability, which leads to speculation in the market. In particular, there is still an imbalance between supply and demand in some real estate segments.

 


Category: Finance, Vietnam

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