SBV orders strict control on real estate credit

The State Bank of Vietnam (SBV) has recently requested credit institutions and foreign bank branches to strictly control the growth rate of credit outstanding balance and the credit quality of sectors with potential risks or heavily affected by the Covid-19 pandemic, especially the real estate credit.

Specifically, commercial banks must regularly assess their operations, financial situation, and debt repayment ability, especially for customers with high credit outstanding balance in the real estate sector, individual customers with high consumer loans, and customers affected by the Covid-19 pandemic so as to take appropriate handling measures.

SBV also requires commercial banks to keep a close watch on investment in corporate bonds, especially those related to construction, real estate trading, or increasing the capital scale of issuers operating in the field of construction and real estate.