Real estate credit of HSBC bank (Vietnam) Ltd, current problems and solutions

Abstract

Over the past decade, accompanying with amazing economic growth and real estate market expansion, Vietnam mortgage markets have developed from a fairly primitive form to a rich and complex institution. Mortgage markets are no longer only a place in which borrowers meet lenders for the purpose of financing real estate transactions, but an arena in which innovative financial instruments exchange hands in huge masses on a daily basis, where banks are compelled to tightly manage the associated risk, where governments are often highly involved and use the ground for implementing and promoting their social and economic policies, etc.

This paper intends to analyze and evaluate real estate credit operation by highlighting aspects

of mortgage sector in HSBC Vietnam. The uniqueness of the chosen bank is HSBC’s mortgage activities directly relate to real estate market and its financial development. In addition, HSBC is a mutinational bank that presents various facets of property credit operation for a large number of countries. The demand for housing mortgage is just increasing over recent ten years according with the change of real estate market. This development inevitably adds much impact on the bank in its asset-debt management.