Increasing the willingness of banks to invest in commercial/housing sectors is the priority of banks?

According to Tejarat News, Article (4) of the Housing Production Jump Law has emphasized: “Banks and non-bank credit institutions are required to allocate at least 20% of their payment facilities every year with the interest rate approved by the Money and Credit Council to the housing sector, as in In the first year of the implementation of the law, the facility should not be less than 360 thousand billion tomans for the units subject to this law, and for the next years, the minimum facility resources should be increased by increasing the percentage of Sadr al-Zekar according to the annual inflation rate.

Of course, this is despite the fact that the banks have refused to pay this amount of housing facilities until now, to the extent that even a single national housing unit has not been delivered to the people (according to the law of jump in housing production) after about two years.

The extent of the banking system’s facilitation of the national housing movement

The Director General of Housing Economics of the Ministry of Roads and Urban Development says that in the first year of the implementation of the law on the jump in housing production, 360 thousand billion tomans of the National Housing Movement facility and 548 thousand billion tomans were announced to the banks in the second year, but the banks have so far signed about 111 thousand billion tomans of contracts including facilities in Self-ownership, National Housing Movement, Rural Housing and housing deposit have been signed by the applicants.

Also, the statistics show that in the first year, 18% and in the second year, 17% of the legal obligation of the banks in paying the facilities of the National Housing Movement has been realized. In total, the performance of the banking system in providing facilities to the national housing movement was 17.5%.

From the very beginning of this project, the banks announced that they do not have the necessary resources to pay for housing facilities, but now it seems that these institutions have used more credits than the payment of housing loans in another field.

Bank employee loan is twice as much as housing construction

Recently, the performance report of the banks has been published in the main amount granted to the persons related to them during the quarterly periods of 1401. As reported by Fars, the total amount of facilities that the banks have paid to the persons related to them in the three months ending in Khordad, Shahrivar, Azar and Esfand of last year are equal to 255 thousand and 400 billion tomans, 202 thousand billion tomans, 212 thousand tomans respectively. And it was 100 billion tomans and 95 thousand billion tomans.

These statistics indicate that the banking system has lent more than twice the facilities paid to the National Housing Movement to people related to it!

Willingness of banks to commercial projects

According to the law on the jump of housing production, banks are required to allocate 20% of the payment facilities of the entire banking system to the housing sector, but the data of recent years, especially since 2015, when the payment facilities to the housing sector have decreased sharply, a large part of the banks’ resources are directed towards financialization. and directed commercial projects.

In this regard, Mohammad Mortazavi, the head of the national mass builders’ association of the country, told the market: Regarding the non-cooperation of the banks, it should be said that the financial model defined for the national housing project and the introduction of national housing applicants can further show the issue of the failure of the national housing. These two cases are discussed while they were also considered in the housing production jump law. So we see that these two sectors are vulnerable, because the banks have not cooperated well in this matter during the last few years.

Mortazavi has stated in this regard: Some banks, in confirming this action, declare that they have loaded their facilities in other sectors or commercial and service projects and cannot accept the repayment of 20-year installments.

The head of the National Association of Mass Builders has stated: Regarding the payment of banks’ facilities to the housing sector, it is clear that the banks have spent and allocated only 6% of their resources in the housing sector. This statistic is far from the requirement of banks to pay up to 20% to the housing sector. This statistic shows that only a quarter of the goals have been achieved.

Banks’ indifference to housing market problems

The indifference of the banks towards the payment of housing facilities, in addition to the existing inflation in the society and as a result the high cost of the items related to construction, has put the supply side of the housing market in a recession. Now these institutions prefer to engage their resources in areas that have a faster return on investment and generate more profit for them. If housing facilities have a longer repayment period and their profitability is lower than commercial projects.

Now, after about two years, not even a single residential unit has been delivered under the National Housing Movement Plan, and this project is still wandering.

Experts say that in this situation, the shortcut is to bring the private sector into the field of construction. Of course, this is despite the fact that the government’s proposal to the private sector for the construction of national housing did not have a reasonable figure, and for this reason, mass builders did not want to enter this project.