Spectator on facebook

Spectator on facebook

Central bank reveals deficiencies in non-banking firms

NON-BANKING companies active in Slovakia violate several rules when they offer loans to clients.

Illustrative stock photo(Source: SME)

This stems from the so-called mystery shopping carried out by the National Bank of Slovakia (NBS), the country’s central bank. The bank, however, did not reveal the names of the non-banking firms or how many inspections it made. The Association of Consumer Loans Providers has welcomed the inspections and says that they will help remove the deficiencies.

Representatives of NBS visited the non-banking firms, which were granted a licence and have the most clients, to obtain the offered products. They revealed that some non-banking firms do not require proof of income or even force the clients to report higher income than they actually have. Another problem is hidden additional services which increase the price of the loan and are part of the general conditions without the clients knowledge of them, the public-service broadcaster RTVS reported.

Moreover, the self-employed were offered business loans, though they wanted money for private purposes. Some clients even received less money than they asked for, since the non-banking firm already deducted the first instalment, RTVS informed.

“The results are alarming,” said Roman Fusek of NBS, as quoted by the TASR newswire.

If NBS reveals further deficiencies, the companies may be sanctioned and even lose the permit to carry out their business, TASR wrote.

The results prove that the inspections were not formal, said Ivan Kahanec of the Association of Consumer Loans Providers.

“We perceive it has a good signal and that the revealed practices will be remedied,” Kahanec told RTVS.  

Topic: Finances and Advisory


Top stories

How the national emblem appeared – including so far secret communism designs

Even Slovaks often do not know why the national emblem depicts a white double-cross, and not the Kriváň peak, or the design by artist Vincent Hložník. They also do not know why it makes a difference whether it is…

Offical Slovak national emblem and colours

Bratislava Zoo will have new wolf breeding station

One of most significant investments of the Bratislava Zoo in the year 2017 will be the building of a new wolf breeding station.

Foreigners: Events around Slovakia Photo

Tips for performances and other events in the Slovak regions between February 17 and February 26, including a race on old wooden sleighs, an operetta premiere, a lot of jazz, classical and rock music, and more.

Rce in krňačky sleighing, Turecká 2017

Some food really is better in Austria, study finds

EC says its role is to monitor safety, not quality – but Slovaks want the same as Austrians, says minister.

Illustrative stock photo