The average borrower has in the banking credit bureau already 2.5 credits. The average debt is 176 thousands crowns
Each person listed in the banking credit bureau has in average 2.5 credits. Compared to 2003, each borrower has one credit more. This stems from the annual statistics of Banking Client Information Register (BRKI), that covers almost 100 percent of bank retail market. Each borrower listed in the Non-Banking Client Information Register (NRKI), that contains data from leasing and consumer credit companies, has in average additional 1.5 consumer credit or leasing.
„The increase of the number of credits per capita is a natural trend, considering that BRKI has existed more than 5 years. However, this does not tell us anything bad about the status of indebtedness of Czech households. Banks check in credit bureaux mainly increase of the total clients' credit and amount of their monthly instalments. Increasingly, overindebtedness has become the reason why clients default on their payments, showing that they don't assess their financial situation properly before borrowing,“ explained Petr Kučera, the Executive Director of CCB – Czech Credit Bureau, that organises BRKI and NRKI and is responsible for their technical services.
Among bank loans, there are classic credit such as mortgages or building savings loans and also for example credit cards and overdrafts. Total amount of credit contracts listed in the BRKI is 11.9 million. Most numerous are personal loans (33 percent), overdrafts (21 percent) and building savings loans (11 percent). In the NRKI, there is listed 1.7 million contracts and the most numerous are consumer loans (52 percent), financial leasing (22 percent) and instalment credit cards (19 percent).
At the end of last year the total credits volume listed in the BRKI reached 827.5 billion CZK. Thus each out of the 4.7 million borrowers has on average a debt of 176 thousand CZK. The biggest share of the total volume were from mortgages (47 percent) and building savings loans (26 percent). Total volume of credits listed in the NRKIreached 200 billion CZK. Therefore each of the 1.1 million borrowers listed in the register has an average debt of 182 thousand CZK. The biggest share of the total volume of the NRKI were from financial leasing (76 percent) and consumer loans (18 procent).
„The increasing indebtedness also raises the clients' interest in their credit history. While in 2006 around 26 thousand people requested a report from the BRKI, last year that number increased to almost 40 thousands. This shows a more than 50 percent increase,“ added Petr Kučera.
Number of bank inquiries for new clients into BRKI increased by 28 percent. In 2007 banks made in total more than 2.5 million inquiries and 83 percent of applicants were recorded in the register. The NRKI's users last year made 412 thousand inquiries into the register. NRKI members now find 64 percent of credit applicants, which is almost 50 percent more than at the end of 2006.