Slovakia’s Finance Ministry plans mandatory registration of non-licensed lenders

Each provider of consumer loans, including a non-licensed financial institution, will be obliged to register with the National Bank of Slovakia before it starts business, pursuant to new legislation prepared by the Finance Ministry, aimed at improving transparency in the consumer lending market, the SITA newswire reported.

Each provider of consumer loans, including a non-licensed financial institution, will be obliged to register with the National Bank of Slovakia before it starts business, pursuant to new legislation prepared by the Finance Ministry, aimed at improving transparency in the consumer lending market, the SITA newswire reported.

This is part of the new law on consumer loans and other lending to consumers, which will be on the cabinet's agenda at its first regular session after the Christmas break, on January 13. If enacted, the legislation is to enter into force on June 11, 2010.

Non-licensed financial institutions can extend or mediate consumer loans if they hold general business license. This means that there is currently no professional or other requirement that would condition business conduct by these entities; the only requirements are general terms related to business conduct on the basis of trade license.

Commercial banks, in contrast, need a license from the National Bank of Slovakia and must meet also other terms. Based on the new law, consumers should obtain precise information when taking consumer loans. The law further imposes a duty on credit providers to assess solvency of consumers. SITA

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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