Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong (Photo: VNA)Speaking at the National Assembly’squestion-and-answer session on November 3 she said the safe and healthydevelopment of the property market is important to socio-economic development. Thismarket should mobilise capital through different channels such as direct investment,the stock market, corporate bonds, the state budget, and funding from peopleand enterprises.
Credit is just one of the funding channelsfor the property market, she noted.
Credit governance by the SBV is aimedat helping control inflation, stabilise the macro-economy, guarantee safety forcredit institutions’ operations, and ensure the stability of the monetary andforeign exchange markets, Hong went on.
The Governor elaborated that when priority is given to inflation control and safety for the banking system, theexpansion of credit for the real estate market may cause difficulties for theSBV’s efforts to achieve the monetary policy’s target. Therefore, creditgovernance should be prudent.
Besides, real estate credit alsoposes latent risks since loans for this field are often long-term ones with bigvalue while the majority of money mobilised by banks is short-term capital, shesaid.
Regarding credit for social housing,the Government issued a decree that assigned the Vietnam Bank for SocialPolicies (VBSP) to act as the coordinator of the lending programme. Some designatedcredit institutions have also taken part in this programme. So far, the VBSPhas lent out over 10.58 trillion VND (425.5 million USD) for social housing, withnearly 9.15 trillion VND in outstanding loans as of September 30.
In the time ahead, the monetarypolicy will still prioritise macro-economic stability and safety for thebanking system. Therefore, credit tools and solutions for real estate will beconsidered in relation with other tools so as to achieve the monetarypolicy’s target, the official added./.
VNA
