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Loan volumes grow by 22% in 2015 - more than last five years

News »  Loan volumes grow by 22% in 2015 - more than last five years

Prague, January 18 – According to the Czech News Agency, building savings banks provided loans last year totaling almost 49 billion Czech crowns. The reasons for the increase include strong client loyalty and interest rates that are historically at their lowest levels.

„In times when interest rates are at their lowest, building savings banks have succeeded in holding their position in the economy and last year even managed to improve their market standing. They're able to offer the loans that clients need. The majority of such loans go towards remodeling and modernizing housing, which is an area where this product is irreplaceable,“ says Jiří Šedivý, secretary of the ACSS.

According to the Czech News Agency, in 2015, building savings banks provided loans totaling nearly 49 billion CZK, which is more than in 2011 when total volumes reached 48 billion CZK.

Following the last reduction in state support, building savings have continued to stabilize. It is, therefore, logical that the number of new agreements is no longer growing very quickly. Despite this, last year there were nearly half a million new agreements, and we consider the year-on-year decline that followed three years of growth to be an exception.

„In 2016, we expect the volume of loans to continue to grow. Moreover, building savings is the only product on the market where the client knows how much the loan is going to cost over the course of the coming six years. In light of low interest rates, there is no reason for loan conditions to worsen in coming years,“ says Mr. Šedivý.

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