Financial institutions need to be more prudent when providing loans now that an amendment to the Consumer Loans Act has taken effect as of January 1. Consumer loans account for an important share of loan provision, with their proportion rising between 12-15 percent annually over the past year. "In terms of the stability of the Slovak financial sector, it's therefore necessary to have that growth based on sound and sustainable foundations and not just on the results of careless easing of requirements for the provision of consumer loans by creditors, which has in many cases been identified as having a negative impact on consumers," reads the amendment.
Anca Dragu, Photo: SITA
