ANTD.VN - Outstanding real estate business loans increased beyond the growth rate of the whole year 2022, but outstanding consumer loans and self-use real estate loans (accounting for 65%), showing that credit capital is focusing on the supply side of the market.
Monetary policy management is more difficult than ever.
This morning (August 22), the State Bank held a workshop on Enhancing the business sector's ability to access and absorb capital: Difficulties, challenges and determination.
According to Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu, monetary policy management has never been as difficult as it is now. While other countries are tightening monetary policy, we are reducing interest rates and loosening monetary policy. Up to now, many debts that have been deferred due to the Covid-19 pandemic have not been completed, and we continue to defer many other debts.
In recent times, the banking sector has made many efforts to support businesses. The State Bank has lowered operating interest rates four times and has tools to support liquidity for commercial banks. Commercial banks have also actively reduced lending rates, cut costs, and provided preferential credit for businesses.
According to the Deputy Governor, if we do not create favorable conditions for credit, it will be difficult to grow. However, if we “remove” the conditions for credit growth, bad debt will increase, causing the “blood clot” of bad debt that was just temporarily resolved to return.
“If bad debt increases, we will fall into a vicious cycle, creating capital congestion for the economy ,” said Mr. Tu.
Therefore, the State Bank's leaders believe that banks are standing between two streams, having to ensure bad debt safety, while also having to grow, share, accompany, and support businesses to overcome together.
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Overview of the Workshop |
Currently, banks have made many efforts to support customers. But in reality, banks cannot lose money. “Banks are very different from businesses, they can only make small profits or large profits, but they cannot lose money, because if banks lose money, it will lead to collapse, causing difficulties for the whole system. Not only Vietnam but also other countries,” said the Deputy Governor.
The difficulty has been partly resolved.
Reporting at the Workshop, Ms. Ha Thu Giang, Director of the Department of Credit for Economic Sectors (SBV) said that although the banking industry has implemented many credit policies and solutions to harmonize many goals, economic credit in the first 7 months of the year still increased lower than the same period in previous years, reaching about 12.47 million billion VND, up 4.56% compared to the end of 2022.
This, according to Ms. Ha Thu Giang, reflects the general difficulty in the economy's capital absorption capacity in an objective context with many influencing factors.
First of all, there is the impact of reduced investment and production demand because businesses have not yet fully recovered from the Covid-19 pandemic, combined with the negative impact of the global economic downturn, leading to reduced credit demand.
Meanwhile, some customer groups have needs but do not meet the loan conditions. In addition, after a period of economic difficulty, the risk level is assessed higher, when the business's operations are difficult to prove efficiency, leading to credit institutions having difficulty in deciding to lend because they cannot lower credit standards to ensure system safety.
In particular, the decline in credit absorption capacity of the real estate group is also the main reason for slow credit growth.
According to the State Bank of Vietnam, outstanding real estate business loans in the first 6 months of 2023 increased (17.41%) exceeding the growth rate of the whole year of 2022 (10.73%), but outstanding consumer loans and self-use real estate loans, which account for 65% of outstanding real estate credit, decreased by 1.12% (the first year of a downward trend in the past 3 years, increasing by 31.01% at the end of 2022).
“This shows that credit capital is focusing on the supply side of the market, while credit demand for real estate purchases for consumption and self-use purposes in the market is decreasing. The above developments show that the solutions to remove difficulties for the markets in the past have also begun to take effect, the legal difficulties of real estate projects have gradually been resolved, contributing to increasing the ability of project investors to access credit,” said Ms. Giang.
However, the representative of the State Bank said that, in the context of general difficulties, the need to buy houses is not a priority for customers at the present time; the product structure is unreasonable, there is an excess of products, high-end segments, and a lack of affordable housing that is suitable for people's needs; real estate projects face legal difficulties, so they cannot meet credit conditions, leading to difficulty in accessing capital.
In addition, the representative of the State Bank also noted that the bad debt ratio of the real estate sector is showing an increasing trend compared to the end of last year (June 2022 was 1.53%, June 2023 was 2.47%).
Ms. Ha Thu Giang said that in the remaining months of 2023, the State Bank will continue to manage credit in accordance with the set goals and orientations; at the same time, deploy solutions to remove difficulties, increase access and absorption of credit capital of people and businesses, meeting the requirements of economic recovery and development...
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