The list includes domestic large-sized joint stock commercial banks such as Agribank, Vietcombank, Vietinbank, ABBank, ACB and LienVietPostBank.
One-member limited liability banks such as ANZ Vietnam, Hong Leong Vietnam, HSBC Vietnam, Shinhan Vietnam, Standard Chartered Vietnam, Woori Vietnam, CIMB Vietnam, UOB Việt Nam, Public Vietnam, Indovina, Vietnam - Russia Joint Venture Bank are also named in the list.
Previously, last month, the State Bank of Vietnam issued the Circular No 13/2017, which has taken effect since November 15, to amend Circular No 07/2015 on bank guarantees.
Under the new circular, commercial banks must issue guarantees for buyers of future property within 10 days from the date the real estate purchase contract is signed.
Vietinbank is among 42 banks which qualify to provide guarantees for future home purchases.
The guarantee means that banks would implement financial obligations to the buyers on behalf of the housing developers in case they fail to hand over the property before the committed deadline without adequately refunding the advances.
The maximum guaranteed amount would be equal to the amount the developers are allowed to receive in advance from the buyers.
Banks eligible to provide a guarantee for home purchases must meet two requirements. Firstly, their establishment and operation licenses should have regulations on guarantees and secondly, banks are not banned from providing guarantees in the period of being under special control.
The central bank will announce eligible banks for providing guarantees for future home purchases on its website. Banks that are removed from the list must still continue to implement its guarantees until the validity of the agreements.
Reports from the National Financial Supervisory Commission showed that by September-end, loans to the real estate sector accounted for 16.8 per cent of the total outstanding loans of credit institutions. This was down from 17.1 per cent at the end of last year.
According to the report, 10.3 per cent of the loans were given to the construction industry and 6.5 per cent were for real estate trading.
The State Bank of Vietnam’s Credit Department of Economic Sectors has recently also reported that the ratio of non-performing loans (NPLs) in the real estate sector has dropped significantly since 2013.
Statistics showed that real estate NPLs dropped from 7.05 per cent in 2013 to 4.06 per cent as of July 31.
The central bank said that it would continue to control credit flow into the property sector.
Experts predicted that in the latter months of the year, especially at the time of the Lunar New Year, the real estate market will see more significant changes as customers often choose to buy a new house at this time to welcome the New Year, hoping for luck and fortune in their dream home.
Therefore, real estate transactions in all segments in the last months of the year see a significant increase against the beginning of the year. That is why the end of the year is always a time when investors race to launch their property products.
Many incentive programs, such as lucky draws and gifting motorcycles, televisions, refrigerators, and even cars and overseas tours, are also introduced to attract the attention of customers.