State Bank requests to temporarily stop lending real estate deposits

(NLDO) – Banks in Ho Chi Minh City and Dong Nai are required to temporarily stop lending to pay for real estate deposits until there is an official conclusion.

The State Bank of Vietnam, Region 2 branch, has just sent a document to commercial banks in Ho Chi Minh City and Dong Nai province warning about risks in lending activities to pay deposits.

This agency said that recently it has regularly received petitions from citizens reflecting on commercial banks lending to pay deposits as agreed in written agreements to real estate consulting and brokerage units.

According to the petition, citizens were upset and said that commercial banks had many violations in the process of granting credit to citizens for the above purposes.

Based on the reality of citizen reception, application processing and information handling of similar cases by competent authorities, the State Bank, Region 2 branch, has issued a warning about some risks and consequences when commercial banks lend for the purpose of deposit payment.

Previously, the People's Court of Region 7, Ho Chi Minh City, had tried and issued a verdict (not yet legally effective due to protests and appeals), in which it determined that the content of the agreement on deposit, progress, deposit period, deposit payment method, and deposit handling in the agreement document was contrary to the law. Therefore, the agreement document was invalid due to violating the prohibition of the law as prescribed in Article 117 and Article 123 of the 2015 Civil Code.

Banks in Ho Chi Minh City and Dong Nai are required to temporarily suspend lending to pay deposits until there is an official conclusion from the competent authority.

On October 7, 2025, the Ho Chi Minh City Department of Construction issued a decision to handle administrative violations against a consulting and brokerage company for real estate business activities where the real estate does not fully meet the prescribed conditions or is not allowed to be put into business according to regulations related to the consulting and brokerage company signing a written agreement with customers.

At the same time, the Ho Chi Minh City Department of Construction also issued Document No. 11,410 dated October 10, 2025, announcing compliance with legal regulations on public disclosure of real estate information and real estate projects put into business in the area (for real estate businesses and real estate projects).

It includes a request that real estate businesses and real estate projects in Ho Chi Minh City are not allowed to authorize other organizations or individuals to sign contracts for deposits, sales, transfers, and lease-purchases of houses and construction works...

"Thus, in case the agreement documents are contrary to legal regulations and are declared invalid, commercial banks are likely to face great legal risks, disputes, and lawsuits, and will encounter difficulties in debt collection and handling of secured assets," said the State Bank of Region 2.

Banks must closely monitor the handling and conclusions of the authorities.

In addition, there are some other risks of bad debt, credit risk and financial loss risk; operational and reputational risk...

From the above comments, the State Bank Branch in Region 2 recommends that commercial banks closely monitor the handling and conclusions of competent authorities (courts, departments, branches, etc.) regarding the agreement (or similar form) signed between customers and consulting and brokerage units to provide timely solutions to resolve disputes with customers in accordance with legal regulations.

Require banks that are issuing loans to pay deposits as agreed in the agreement (or similar form) to proactively work with customers, coordinate with consulting units, brokers, and project investors to negotiate and resolve on the basis of protecting the legitimate rights and interests of customers, and avoid cases of mass complaints and petitions that go beyond the level of authority.

"Temporarily suspend lending to pay deposits according to the above-mentioned written agreement (or similar form) until there is an official conclusion from the competent authority. In case the competent authority concludes that the written agreement (or similar form) is not illegal, in case of continuing to lend, commercial banks are requested to develop specific procedures for the above-mentioned loan purpose to limit risks" - State Bank Branch Region 2 stated.

Source: https://nld.com.vn/ngan-hang-nha-nuoc-yeu-cau-tam-dung-cho-vay-tien-dat-coc-bat-dong-san-196251022142825039.htm