Consumer loans requirements to be tightened

Stricter mortgage rules are set to be followed by more stringent rules for consumer loans as of January 2018, wrote TASR last weekend. Given the rapid pace at which household debt has been increasing, the National Bank of Slovakia (NBS) is putting forward measures to make it obligatory for lenders to apply stricter checks on the incomes of loan applicants. The ultimate aim is to ascertain the ability of the borrower to repay their credit. The inter-ministerial comments procedure regarding the measure was concluded as of August 31st. In its report on the state and developments in the financial sector in 2016, the National Bank noted that the number of consumer loan defaults more than doubled between 2012 and 2016 notwithstanding favourable economic conditions and developments on the labour market.