Loans to households keep growing this year

The total volume of long-term loans of Czech households increased by Kc56.4bn year on year to Kc1,100bn in the third quarter of this year and the volume of short-term loans rose by Kc7.6bn to Kc364bn, according to data from the Banking and Non-Banking Register of Client Information.

​The register is operated by companies CBCB - Czech Banking Credit Bureau and CNCB - Czech Non-Banking Credit Bureau.

The average amount of money per client with a long-term debt, namely mortgage loans and loans from building societies, reached Kc1.2m and per client with a short-term debt was at Kc146,000.

The number of people who gained a short-term loan increased by 5,000 yr/yr to 326,000 in Q3 2014 and the average sum per client with a short-term loan rose by Kc6,700 to Kc121,500.

The volume of mortgage loans grew by Kc56.4bn (6 percent). Mortgage loans are being paid by 520,000 people, 44,000 more than a year ago.

The average size of a mortgage loan per client dropped by Kc69,000 to Kc2m. The highest share in the long-term debt belonged to people aged 35 to 44 years at the end of the third quarter of this year, and then to people in the age group 30 to 34 years.

The volume of endangered long-term debts reached Kc19.1bn at end-September and the volume of endangered short-term debts Kc32.7bn.

The number of clients with endangered mortgage loans remained unchanged compared to the same period last year and the number of those with endangered short-term loans fell.

The average endangered amount of money per client increased by mortgages as well as by short-term loans.

"The volume of the endangered long-term and short-term loans has been growing in the last several monitored periods," said CBCB director Zuzana Pecena.

One million clients already have consumer loans, while interest in personal loans and loans from credit cards drops.

"Loans within these three products increased by 2 percent on the year. People prefer loans directly at the shopping place or on the Internet," CNBC director Jiri Rajl remarked.

The volume of debts by consumer loans increased from Kc96.6bn to Kc119.2bn. The average size of debt per clients rose from Kc101,175 to Kc113,905.

The volume of debt within personal loans dropped by Kc13.3bn to Kc147.3bn and the number of clients with these debts dropped by 134,000 to 1.2 million.

The average amount of money per client increased by Kc2,253 to Kc121,707. Within credit cards, the volume of the debt as well as the average amount of money dropped, while the number of clients slightly grew.

CRIF - Czech Credit Bureau is the provider of organisational and technical background for CBCB and CNCB which operate the biggest Czech loans registers - both the Banking and Non-Banking one.

Several further financial institutions are entering the Non-Banking Register of Client Information, namely Provident Financial, Aasa Czech, IKB Leasing CR and LeasePlan CR.

A total of 28 companies are in the Non-Banking and 24 companies in the Banking Register.

Source: CTK, 11. 12. 2014, Section CTK: cce bns, Author: fs