Future property guarantee surprising with permitted banks

The revised Housing Law taking effect on July 1 regulated that future property investors must be guaranteed by banks. The State Bank of Vietnam’s recently announced list of 33 eligible banks has surprised the public as many large brand names are unlisted.

An under-construction property project in HCMC (Photo: SGGP/Financial Investment)

Explaining their absence from the list, director general of Orient Commercial Joint Stock Bank (OCB) Nguyen Dinh Tung said that they had lately submitted necessary documents to SBV comprising a board of directors’ resolution.

Other unlisted banks include NamA Bank, Export Import Bank (Eximbank), Vietnam International Bank (VIB), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), Saigon Bank and three recently nationalized banks namely Vietnam Construction Bank (CB), Ocean Bank and Global Petrol Bank (GP Bank).

Eximbank representative said that they were doing related procedures for SBV’s approval. That is also answer of others like NamA Bank and Sacombank to the press.

The list announced on August 12 might not be the final one by SBV, they said.

The Clause 56 of the revised Housing Law required that investors of future property projects must be guaranteed by qualified commercial banks to prevent risks for customers in case investors fail to conduct their commitments.

Therefore, prestige of the unlisted banks has been affected. Many people have questioned about their financial ability.

Besides the list of 33 banks, SBV has not made clear norms to select qualified banks for the guarantee of future property projects.

Related article:
SBV names banks permitted to guarantee future properties

By Minh Xuan – Translated by Hai Mien

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