Banks recorded sound rise in retail credit in 1H14

Slovak banks recorded a 10.6-percent rise in retail credit year-on-year in the first half of this year, a report on the state of the financial market in 1H14 that is to be discussed by the government states. It was especially mortgages and consumer credit that were experiencing greater turnover. The volume of housing loans went up by 12.8 percent, with new consumer credit rising even faster, by 16.8 percent. “This rise was fuelled mainly by demand from clients who took advantage of the favourable combination of falling interest rates and high availability of housing – despite the fact that some banks applied more stringent lending standards,” a statement from Slovakia’s central bank, NBS, reads, as quoted by the TASR newswire. The increased lending isn’t without risks, however, and NBS points to the possible risk of loss both for banks and clients in the future. Meanwhile, net profits of banks stood at €299 million in the first half of this year which represents a rise of 5.3 percent on an annual basis. “The Slovak banking sector continues to show a great deal of resilience towards possible risks, which is thanks to sound indicators vis-a-vis capital adequacy, leverage and liquidity," the NBS stated, according to TASR.

Slovak banks recorded a 10.6-percent rise in retail credit year-on-year in the first half of this year, a report on the state of the financial market in 1H14 that is to be discussed by the government states.

It was especially mortgages and consumer credit that were experiencing greater turnover. The volume of housing loans went up by 12.8 percent, with new consumer credit rising even faster, by 16.8 percent.

“This rise was fuelled mainly by demand from clients who took advantage of the favourable combination of falling interest rates and high availability of housing – despite the fact that some banks applied more stringent lending standards,” a statement from Slovakia’s central bank, NBS, reads, as quoted by the TASR newswire. The increased lending isn’t without risks, however, and NBS points to the possible risk of loss both for banks and clients in the future.

Meanwhile, net profits of banks stood at €299 million in the first half of this year which represents a rise of 5.3 percent on an annual basis. “The Slovak banking sector continues to show a great deal of resilience towards possible risks, which is thanks to sound indicators vis-a-vis capital adequacy, leverage and liquidity," the NBS stated, according to TASR.

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

Get daily Slovak news directly to your inbox

Top stories

News digest: Who will take the swabs?

The government offers hundreds of euros to health care staff for testing. Curfew ends on Saturday for some. Take a look at testing sites and more.

PM Igor Matovič helped with testing in Tvrdošín.

People with negative tests can go to hairdresser or outdoor terraces

Those with a negative test result will have to follow rules introduced on October 15.

Companies fear drop in demand for their products and services the most

International chambers of commerce asked companies about their current situation as well as expectations.

Companies implemented anti-coronavirus measures.

The big testing: When and where to show up, and what if I don't want to? (FAQ)

Here is what we know about the practicalities of the nationwide testing so far. Testing also applies to foreigners and diplomats in Slovakia.

Pilot testing in Bardejov