Czech banks are more equipped to deal with a recession now than the previous year, reported from the annual health check carried out this week. Among these banks are units of Austria’s Erste Group Bank, Belgium’s KBC, Societe Generale in France and UniCredit in Italy.
Banks stated that they would safeguard mortgage lending by putting more strict guidelines and rules in place from October onwards. In order to keep ahead of ‘rising lending’, the central bank has already prepared and installed a Countercyclical Capital Buffer (CCB) rate of 0.5%, effective from the start of 2017.
Another main aspect of the reporting covered the housing sector. In particular unwarranted property price rise which can be brought about by low rates and easily available housing loans.