Governor Nguyen Thi Hong worries about big risks, checks credit records

The State Bank has just sent a report to the National Assembly on the contents questioned at the 3rd session signed by Governor Nguyen Thi Hong. Governor Nguyen Thi Hong is one of four industry leaders who will participate in questioning and answering questions before the National Assembly, expected on the afternoon of June 8.

Governor Nguyen Thi Hong worry about big risk from real estate loan, credit record check

Referring to the report, Governor Nguyen Thi Hong said that the total outstanding real estate loans of credit institutions by the end of April was more than 2.28 million billion VND, up 10.19% compared to the end of 2021. This level accounts for about 20.44% of the total outstanding loans to the economy, and the bad debt ratio of this sector is about 1.62%.

Follow Governor Nguyen Thi HongReal estate investment and business is one of the risky areas for banking activities due to the strong fluctuations of the real estate market, the situation of inflated prices causing real estate fever, land auctions at high real estate prices. often… affects credit granting and valuation of collateral assets of credit institutions.

In addition, although the credit granting situation as well as credit quality for the real estate sector is still under stable control by the State Bank, in order to limit the impact of the real estate market on the macro-economy. , it is necessary to have comprehensive and synchronous solutions with the coordination of relevant ministries, departments and branches to healthy and build a sustainable real estate market.

Regarding the loan term, Governor Nguyen Thi Hong said that about 94% of real estate credit balances are medium-long-term loans (10-25 years), while the bank’s mobilization sources are mainly short-term. term.

“The difference in terms and interest rates between capital and lending in this field is very risky for banks,” said Governor Nguyen Thi Hong.

According to the commander of the banking industry, in recent years, the SBV has been implementing many solutions to control risks from this sector.

Firstly, completing the legal corridor through legal documents on the limits and ratios to ensure safety in banking activities.

Second, closely monitor loan balance growth and credit quality for the securities and real estate sectors to promptly detect potential signs of risks and take appropriate handling measures, contributing to part to ensure the safety of the operation of the system of credit institutions.

Third, strengthen the inspection, examination, focus and focus on examining the credit applications for the real estate sector of banks. From there, detect problems, shortcomings and violations in credit granting activities to promptly handle and make specific recommendations to limit the risks of credit institutions in credit granting activities in general and real estate in particular.

In the coming time, the State Bank will continue to direct credit institutions to grow safely and effectively; strictly control credit for potential risk sectors including investment, real estate businessAt the same time, creating favorable conditions for organizations and individuals to access credit capital to buy and invest in housing for self-use and consumption, especially social housing, housing for workers, commercial housing, etc. cheap trade.

Continue to review and coordinate with relevant ministries and branches to complete legal regulations to support the sustainable development of the real estate market while controlling risks and ensuring the safety of the credit institution system. use

Along with that, strengthen inspection and close supervision of the granting of credit to the real estate sector in order to promptly provide solutions to ensure safety in the operation of credit institutions. prevent and promptly detect risks and violations arising.

Regulate credit institutions that lend for investment, securities, and corporate bonds

Regarding the situation of lending for securities business, Governor Nguyen Thi Hong informed that by the beginning of April 2022, credit for investment and securities trading accounted for about 0.5% of the total outstanding loans of the economy, outstanding loans. mainly short term (accounting for 98%); mainly focus on debt to invest in Government bonds.

The total balance of investment in corporate bonds of credit institutions by the end of April 2022 is 320.4 trillion dong, accounting for a small proportion compared to the total credit balance (2.86%), showing that the business Corporate bond investments by institutions remain controlled.

However, the commander of the banking industry also pointed out that the risks from stock market, corporate bonds most arise from the activities of enterprises listed on the stock market and bond issuers (under the management of other ministries and branches).

“The inspection and supervision of banking activities related to this field is only a measure of risk management from the bank’s side. Therefore, it is necessary to have comprehensive measures in sync with the coordination between the banks. Relevant ministries and branches to clean, healthy, and strengthen the stock market as well as the corporate bond market, “emphasized the Governor.

In the coming time, the State Bank will strengthen the inspection and supervision of investment activities in corporate bonds, take measures to prevent and promptly detect arising risks and violations, and at the same time regularly warn about reporting and correcting credit institutions with this activity.