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CLIENTS OF BUSINESS SAVINGS BANKS WON´T BE AFFECTED BY THE CRISIS
News » CLIENTS OF BUSINESS SAVINGS BANKS WON´T BE AFFECTED BY THE CRISIS
The position of ACSS regarding the current financial crisis:
CLIENTS OF BUSINESS SAVINGS BANKS WON´T BE AFFECTED BY THE CRISIS
The current financial crisis has even made some building savings banks clients uneasy and are looking for information regarding whether their savings with building savings banks are safe and won?t be harmed by the falling housing prices. As the Chairman of ACSS I feel it is my responsibility to respond to these claims.
Building savings is a unique product whose nature and design allow it to function with relative separation from the surrounding market. In other words, even a financial crisis doesn?t directly affect building savings. It is quite the opposite, building savings is a system that can actually help the entire economy.
The uniqueness of building savings lies in the fact that the financing of building needs comes from the money of clients who are saving and don?t need a loan. This allows for the interest rates on loans that are provided to be the lowest over the long term.
This system of financing building needs has proved to be particular to some European countries, where the system has essentially evolved over the entire last century. Over this entire period, the building savings system hasn´t seen any larger scale negative fluctuations and thus has become one of the most stable and safest saving resources.
All of the building savings banks on the Czech market use the principles of building savings that have been successful in other countries. There is no reason for clients to start to lose their trust in building savings. One of the stabilizing factors of building savings is the provision of state support, which amongst other things, helps bring additional clients into the system. The support is a mandatory part of the state budget, which every government in power is responsible for. On the other hand it is only a fraction of what other countries have had to pay because of the effects of the mortgage crisis.
In the past we have seen a number of lobbyists, foreign advisors as well as other institutions try to change the system to something more like a system which helped generate the current financial crisis. Of course, now we can all see the wisdom of the Czech government in not giving in to the pressure!
For the Association of Czech Building Savings Banks it is striking even now that there are certain groups who are pressing for a reduced role of building savings and reallocating the government funds to other products. What they fail to recognize is the primary role of building savings and they ignore that fact that it is primarily a lending product, and not a savings product. The savings is only a prerequisite for the creation of capital for loans. This fulfils one of the cornerstones of safe lending, that being the strict and consistent requirements for a sufficient amount of capital. Moving away from this rule in any significant manner could have a negative impact on the housing market, and then subsequently on the financial market as a whole.
The Association of Czech Building Savings Banks is convinced that clients don´t have to be concerned about the building savings products. The management of building savings banks as well as all employees are prepared to give clients any required information in order to clear up any of their concerns.
Vojtěch Lukáš, Chairman of AČSS
ACSS
The position of ACSS regarding the current financial crisis:
CLIENTS OF BUSINESS SAVINGS BANKS WON´T BE AFFECTED BY THE CRISIS
The current financial crisis has even made some building savings banks clients uneasy and are looking for information regarding whether their savings with building savings banks are safe and won?t be harmed by the falling housing prices. As the Chairman of ACSS I feel it is my responsibility to respond to these claims.
Building savings is a unique product whose nature and design allow it to function with relative separation from the surrounding market. In other words, even a financial crisis doesn?t directly affect building savings. It is quite the opposite, building savings is a system that can actually help the entire economy.
The uniqueness of building savings lies in the fact that the financing of building needs comes from the money of clients who are saving and don?t need a loan. This allows for the interest rates on loans that are provided to be the lowest over the long term.
This system of financing building needs has proved to be particular to some European countries, where the system has essentially evolved over the entire last century. Over this entire period, the building savings system hasn´t seen any larger scale negative fluctuations and thus has become one of the most stable and safest saving resources.
All of the building savings banks on the Czech market use the principles of building savings that have been successful in other countries. There is no reason for clients to start to lose their trust in building savings. One of the stabilizing factors of building savings is the provision of state support, which amongst other things, helps bring additional clients into the system. The support is a mandatory part of the state budget, which every government in power is responsible for. On the other hand it is only a fraction of what other countries have had to pay because of the effects of the mortgage crisis.
In the past we have seen a number of lobbyists, foreign advisors as well as other institutions try to change the system to something more like a system which helped generate the current financial crisis. Of course, now we can all see the wisdom of the Czech government in not giving in to the pressure!
For the Association of Czech Building Savings Banks it is striking even now that there are certain groups who are pressing for a reduced role of building savings and reallocating the government funds to other products. What they fail to recognize is the primary role of building savings and they ignore that fact that it is primarily a lending product, and not a savings product. The savings is only a prerequisite for the creation of capital for loans. This fulfils one of the cornerstones of safe lending, that being the strict and consistent requirements for a sufficient amount of capital. Moving away from this rule in any significant manner could have a negative impact on the housing market, and then subsequently on the financial market as a whole.
The Association of Czech Building Savings Banks is convinced that clients don´t have to be concerned about the building savings products. The management of building savings banks as well as all employees are prepared to give clients any required information in order to clear up any of their concerns.
Vojtěch Lukáš, Chairman of AČSS