Equity loans for consumption are still flowing into real estate ?

Although the credit growth the current property is lower than the same period in 2015, but due to consumer lending, which the majority of which are related to buy houses, very strong increase, should the authorities still put many worries. The flow of credit in real estate are forecast to continue rising in the coming period (source: investment in securities). Consumer capital flows into real estate? Speaking at a new conference here, Deputy Chairman of the financial monitoring Committee of the country, said Zhang van Phuoc said, selling highly conducting monetary policy in the year 2016, with keeping inflation stable and estimated this year's credit increase of 18-19%. According to him, credit growth Phuoc 2016 is relatively good and the allocation of capital was essentially over.

Equity loans for consumption are still flowing into real estate ?
However, he Blessed also said that still more disturbed and should be noted to avoid the risk of "bubbles" in real estate. He Blessed the lead figures, real estate credit in 2016 to date although only increased 12% (the same period 2015 to increase 28%), but there are big question marks in the array of consumer lending. "Consumer credit increased nearly 40% this year, half of which related to the purchase of housing," said Phuoc said. Figures from the financial monitoring Committee of the previous countries also shows that the financial system in the first 9 months of the year 2016 overall stability, ensuring the supply of capital for the economy.

Credit growth hit 10.2% compared with the end of the year 2015, but credit growth averaged 8/2016 reached 4.7% (same period of 2015 is 4.1%). In it, private business and investment credit property increased 5.3% compared to the end of the year 2015, accounting for 8.5% of total credit (end of the year 2015 is 8.9%). Consumer credit also increased 28.7% compared to the end of the year 2015, accounting for 11.3% of total credit (the year 2015 is 9.7%). However, consumer credit focuses primarily on the needs of home repair, home buying to stay (49.9%), buy the equipment (26%) and transportation (10.7%), although the banks boost capital for personal consumer loans also are viewed as quite positive signals for the real estate market.

Fact, the housing needs of the customer are always falling on the occasion last year, especially in the major cities such as Hanoi, Ho Chi Minh City, Da Nang ... In it, the city is the capital of Ho Chi Minh City and developed for, should always have the big attractions for people all over the country. Furthermore. owning a home in the big city is always the hunger of the people, especially the young family, to buy a home is no easy thing.

In large cities, with an average income of about 12 million/month, this dream is quite far away. Thus, in this way or another, the individual has to supply organizations which had to be borrowed. However, not everyone can borrow money to buy the House, but instead is through forms of consumption. By consumer capital, also primarily used for repair purposes, or buying a house or land. Therefore, the flow of capital into real estate and the focus is the housing segment, the forecast is still increasing in the coming time.

Caution with credit real estate

However, before the context of bad debt is not yet able to handle fast and bad debt even re falling in some banks, the real estate credit need to be tighter control on quality. According to the report of the Monitoring Committee of national finance, asset quality and bad debt disposal process of the banks still slowly improve. Slow due to bad debt disposal the capacity to extract backup up risks of credit institutions is also more limited, the secured property trade were difficult due to legal issues. This forced the banks to be cautious in real estate lending.

Although the Bank said, we only promote the focus for personal loans to buy houses, but if does not control the quality of credit, then the risk is hard to avoid. TS. Nguyen Van Hieu, Place financial professionals – the Bank that the commercial banks boost lending for real estate personal loans with reasonable interest rates home purchase will be good for the market, especially in the case of buying a home to stay. However, according to reviews of TS. Curious, the "bubble" of home credit, land can also occur in this credit segment, if the Bank massively lending, that lack of control.

In fact, this situation occurred in the United States in the first years of the Decade of 90 and in Vietnam the period 2007-2010. Thus, the banks needed to control closely the best account of this, because the risk in this credit plate always very big. Advocates of State Bank remained "wide door" with housing credit, the song is tight credit quality control to limit the risk of bad debt. So the State Bank issued Circular No. 6/2016/TT-NHNN amendments and supplements to some articles of the circular No. 36/2014/TT-NHNN regulations on limits, the rate guarantee safety in the operation of the credit institution, was somewhat "secure" credit field have the roadmap.

Accordingly, risk factor, the ratio of short-term capital used for medium and long-term loans in the Bank will be adjusted since the beginning in 2017. State Bank define the agenda of reducing the rate of short-term capital in Middle-long term about 50% from 1/1 to 31/12/2017 days and further reduce about 40% from 1/1/2018. At the same time, the risk factor of the account must insist to the business of real estate increased from 150% to 200%. TS. Nguyen Van Thuan, head of Faculty of finance-banking University HCMC Open for that, this is justified by the banks tend to promote equity in the real estate market. Council opinion on the, a representative of HSBC Vietnam, credit growth Outlook of the industry this year have improved, with the real estate credit, banks are always tight control of quality to limit the risk of bad debt.

With circular 6, essentially, equity line of credit is the regulation will remain as the year 2015. However, Directive No. 04/CT-new SBV is issued has set out a number of requirements operating solution of monetary policy and Bank activities, the end of the year 2016, which note that banks are not subjectively with the happenings of the inflation. Along with that is closely monitoring, tracking, alerts credit organizations have the scale and the pace of credit growth in a number of fields latent risks such as:-long-term credit, credit for large customer group, investment credit, business property, credit for BOT projects BT traffic. Credit focus on manufacturing and business sectors, for the priority field is under the direction of the Government.

Previous concerns about the possibility of "bubble" real estate credit, the leader of the gang said that the risk lies not only in real estate lending, which can happen with any form of credit. The Bank has experienced real estate "bubble" a few years ago, therefore, controlling the risk was more effective. When the loans, the Bank will consider factors such as: real estate loan needs to stay, not to investment; lending in selected projects; prestigious investors..., to lending decisions. According to the leader of the gang, the year 2017 is forecast to remain in the property development, so that the demand will increase, so the flow of credit to the real estate growth is inevitable, but will not have the mutation. On the other hand, control the risks to credit quality has always been that the work is of interest in parallel with outstanding growth.

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