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Others set to follow as two Czech banks raise mortgage rates

Others set to follow as two Czech banks raise mortgage rates
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World's Best Banks 2021: Central & Eastern Europe | Global Finance Magazine


World’s Best Banks 2021: Central & Eastern Europe
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This year’s best banks in the Central & Eastern European region responded to the pandemic crisis with agility.
May 04, 2021
Most countries in Central and Eastern Europe were less affected than their western neighbors by the first wave of the pandemic. During 2020 their economies, which are typically based more on manufacturing and agrobusiness than consumer-facing services, proved resilient and in many cases registered positive growth. 
The region’s leading banks responded to this by expanding their loan portfolios across the board while at the same time cutting costs and shoring up their capital base through retained earnings and increasing provisions against anticipated Covid-19 related loan losses. ....

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Czech mortgage market enjoys marked growth


Photo: Jiří Němec
The Czech mortgage market expanded by no less than 38 percent in 2020, according to estimates published by the ČSOB bank group. Banks provided around CZK 250 billion in mortgage loans last year, which was a new record.
ČSOB expects that this strong interest in housing loans will continue into 2021 – though it also says there is likely to be a 10-percent falloff in comparison with last year’s figures.
The ČSOB group, to which the specialised ČMSS housing loans company and Hypoteční banka also belong, is the market leader in this field in the Czech Republic.
ČSOB board member Jan Sadil told journalists on Thursday that the record growth was on the back of continued interest on the part of Czechs in purchasing their own homes as well as very low interest rates, which have been falling practically constantly since April. ....

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