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

Námestie Slobody gets facelift Photo

The architectural tender will gather ideas for the redesign of the biggest square in Bratislava

Námestie Slobody will be redesigned into a kind of living room in the city.

When the state can’t keep a secret

A selective leak has tarnished President Kiska’s reputation. But he must continue to speak out about corruption.

President Andrej Kiska

Fundamental values explored at Divadelná Nitra 2017

This time round, the Slovak, European and US ensembles at the theatre festival focus on #fundamentals, i.e. basic values and the essence of all things.

Nature Theatre of Oklahoma: Pursuit of Happiness

Foreign rocket engines for North Korea: Why?

For Russia, the path to a weakened China could be through a major nuclear accident in North Korea.