Recommendation on actions in granting non-housing consumer loans
In early 2019, the CNB responded to risks associated with the acceleration of growth in general-purpose cash loans, granted under more lenient creditworthiness assessment standards in comparison with housing loans, with an increasingly longer maturity. In order to alleviate the accumulation of credit risk which could, if materialised amid deteriorated macroeconomic developments, cause a sharp increase in non-performing loans, the CNB recommended to all credit institutions that, in determining consumers' creditworthiness for all non-housing consumer loans with an original maturity of at least five years, they apply equal criteria as applied to housing loans (i.e. to take into account the minimum costs of living that may not be less than the amount prescribed by the Foreclosure Act governing a part of salary exempted from foreclosure).
- Recommendation on actions in granting non-housing consumer loans
- Macroprudential Diagnostics No. 7, Box 1: Does intensified growth in general-purpose cash loans bring risks to financial stability?
- Macroprudential Diagnostics No. 8, Box 1: Indirect limit on the amount of loan repayment relative to debtor's income
Recommendation to mitigate interest rate and interest rate-induced credit risk in long-term consumer loans
In efforts to mitigate interest rate risk for consumers and interest rate-induced credit risk for banks, the CNB adopted a recommendation for credit institutions to mitigate that risk. It is recommended that credit institutions offer clients the possibility of changing loan financing conditions so that consumers having loans with variable interest rates could protect themselves against interest rate risk. Credit institutions having acted in accordance with the CNB's recommendation has enabled a significant increase in the share of loans with a fixed interest rate to maturity or in a certain initial repayment period, which has protected debtors from the effect of market interest rate increase at least in a medium-term.
- Recommendation to mitigate interest rate and interest rate-induced credit risk in long-term consumer loans
- Analytical annex to Recommendation to mitigate interest rate and interest rate-induced credit risk in long-term consumer loans
- Exposure of the Private Non-financial Sector to Interest Rate Risk: Analysis of Results of the Survey on Interest Rate Variability
- Information list with the offer of loans to consumers
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Decision repealing the Decision on a temporary restriction of distributions (OG 106/2021)
Decision on a temporary restriction of distributions (OG 4/2021)
- Application of the Decision on a temporary restriction of distributions – Q & A
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