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

General Prosecutor filed a motion for the dissolution of ĽSNS

The Slovak Supreme Court received a motion to dissolve the extreme right ĽSNS party founded and led by Marian Kotleba.

Jaromír Čižnár

Russian spies allegedly recruit also Slovaks

They are using martial art clubs in Germany and dozens more in other EU states, in the Western Balkans, and in North America.

Illustrative stock photo

EC scrutinises state aid for Jaguar Photo

There is a question whether the scrutiny may impact the carmaker’s plans to invest in Slovakia.

The construction site of a brand new plant of Jaguar Land Rover near Nitra.

GLOBSEC forum will host guests from 70 countries

The 12th year of the conference will be attended by the highest number of participants in its history.

Slovak President Andrej Kiska gives the opening speech of The Globsec 2016 security conference.