Law requiring licensing of non-banking lenders in the works

NON-banking lenders will not be allowed to do business in Slovakia without a licence issued by the National Bank of Slovakia (NBS), the country’s central bank. This stems from the draft amendment to the law on consumer loans, which the Finance Ministry submitted to interdepartmental review. The change aims to increase transparency and performance of control on the market with consumer loans, the SITA newswire reported on July 21.

NON-banking lenders will not be allowed to do business in Slovakia without a licence issued by the National Bank of Slovakia (NBS), the country’s central bank. This stems from the draft amendment to the law on consumer loans, which the Finance Ministry submitted to interdepartmental review. The change aims to increase transparency and performance of control on the market with consumer loans, the SITA newswire reported on July 21.

The ministry is setting conditions that would require lenders to obtain permission to provide consumer loans. In the case of non-banking lenders, this procedure will replace having to register on the list of creditors. Banks will not have to ask for the licence. The NBS will check and supervise the activities of creditors offering consumer loans, as reported by SITA.

Moreover, there will be two types of licences: limited and unlimited. Those with limited licences will not be able to provide consumer loans higher than €10,000. For an unlimited licence, firms will have to be registered as limited liability or joint-stock companies, and will have to establish a supervisory board. Such companies will have to have basic capital of at least €100,000 and will have to prove the origin of the capital and the financial sources from which they will provide loans. The firms will also be required to keep the amount of basic capital during the period in which it provides consumer loans, SITA wrote.

The amendment also proposes to establish an electronic information registry for consumer loans to better assess clients’ ability to pay off a loan. The register will be open to all creditors, who will be obliged to assess the information when setting conditions for a loan.

If passed by the government and parliament, the new measures will come into force on January 1, 2015.

Source: SITA

Compiled by Radka Minarechová from press reports

The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Top stories

Hand drawn art in GMB Photo

THERE are some obvious similarities between the life stories, and also main motif of works by two painters now exhibited in the Bratislava City Gallery (GMB), Lajos Szalay and Koloman Sokol. 

Koloman Sokol: Men from Tacuba

Eva Nová conquers Canada, Slovakia

THE FILM which won an award at the Toronto International Film Festival last autumn, Eva Nová, now comes to Slovak cinemas – and with English subtitles so that even non-Slovak speakers can enjoy it.

Movie: Eva Nová

ETP: State could learn from our work with Roma

WHILE some mayors struggle to improve life in segregated Roma settlements, the non-profit organization ETP Slovakia has helped hundreds of marginalized people construct their own houses. 

Slávka Mačáková, the director of ETP Slovakia

Health care and education harm Smer

THE RULING Smer may not continue in its one-party government after the March 5 general election, recent polls indicate.

Protests by teachers and nurses have hurt support for Smer.