State Bank of Vietnam Governor Nguyen Thi Hong has sent a document replying to Ha Sy Dong, a National Assembly Deputy from the central province of Quang Tri, who spoke about property bubbles at the first session of the 15th NA on July 25.
National Assembly Deputy Ha Sy Dong
Dong pointed out that capital flow has been driven into non-bank channels, including securities, real estate, corporate bonds, pension funds of securities companies, and insurance companies and investment funds, which may cause financial imbalance. Some state management agencies have warned of the risk.
SBV has taken the major responsibility to dispel the risk.
Hong said that when managing monetary policy, SBV implements comprehensive solutions to attract capital flow into production and business and to priority fields to give impetus for economic growth, as well as strictly control credit given to risky fields such as real estate, securities, and BOT/BT projects.
The growth rates and the proportion of loans provided to risky fields have been decreasing for years.
The loans provided to fund securities investment just account for 0.5 percent of total outstanding loans. The real estate credit growth rate has decreased and loans are mostly provided to fund people's home purchases (60 percent).
According to Hong, in the first months of 2021, the stock market became hot and real estate prices escalated because of information about urban planning, transport project development, and local authorities' decisions on land price adjustments.
The Covid-19 pandemic has led to gloomy economic prospects and lower deposit interest rates. Many people and businesses that have capital but lack opportunities to expand their business have intensified their investments in securities and real estate.
Hong said the supervision of risks in the markets is the responsibility of many sectors.
For the banking sector, SBV earlier this year instructed credit institutions to strictly control credit provided to risky business fields.
"The credit flow to these fields is under control," Hong said.
In the time to come, SBV will continue pursuing a management policy that ensures safe and healthy credit activities, and will drive credit to production and priority fields as instructed by the Government.
Also, it will focus on controlling bad debts and credit growth in risky fields.
In a document sent to Hong, Dong said central banks around the world are in dilemma. They have to extend monetary loosening, with both traditional and non-traditional measures, to help their economies overcome difficulties caused by the pandemic, even though they understand that the measures may cause serious consequences.
"In Vietnam, cash flow has been abnormal in the overall financial-monetary market, resulting in asset bubbles and other financial distortions and imbalances," he said.
- Home-owning dream on hold as Tasmanian property market braces for coronavirus hit
- Police were warned against heavy-handed lockdown enforcement five days ago... before officers handed out dozens of fines, banned the sale of Easter eggs, stalked ramblers with a drone and dyed lagoon black
- Berlin's housing bubble and the backlash against hipster tourists
- The Big Fracking Bubble: The Scam Behind Aubrey McClendon’s Gas Boom
- Housing market 'shutdown': Couple are left paying TWO mortgages after dream move collapses as Government warns people to delay completion and Halifax withdraws most home loans to buyers without 40 per cent deposits
- Cops warn Pokémon Go players: Please don’t trespass to catch ‘em all
- Six new coronavirus cases found, as Tasmanians warned police will be watching
- Boris to hold his first Cabinet meeting TODAY after only finishing bloodbath reshuffle at midnight as he makes Raab deputy PM and rewards Rees-Mogg and forgives his brother in bid to deliver Brexit
- US Embassy backtracks on scam warnings about American's repatriation efforts
- COVID-19 | FM’s Rs 1.7 lakh crore package is a safeguard, the stimulus is on the way
- Lawmakers discussed SOEs management
- Coronavirus live updates: 300,000 cases in U.S.
- Coronavirus live updates: Trump blasts naval captain who wrote letter from virus-stricken ship
- Coronavirus live updates: Pink tests positive for COVID-19
- Coronavirus live updates: Pink tests positive, then negative for COVID-19
- Coronavirus live updates: San Francisco tops 500 cases, including another Laguna Honda nursing home resident
- Coronavirus live updates: Contra Costa, San Jose nursing facilities report high case numbers
- Coronavirus live updates: Cases rise at Contra Costa, San Jose nursing facilities
- Coronavirus live updates: Outbreaks at Contra Costa, San Jose nursing facilities
- Coronavirus live updates: Newsom issues order protecting consumers from price gouging
NA Deputy warns of property bubbles have 717 words, post on vietnamnet.vn at September 10, 2021. This is cached page on Talk Vietnam. If you want remove this page, please contact us.