Top building savings executives in Prague once again
The environment of low interest rates is generating record-low loan interest rates as well as consistently attractive conditions for saving. The European Federation of Building Societies (EFBS), which is meeting in Prague, is discussing ways to confront several fundamental European regulations.
Top executives from the European Federation of Building Societies are meeting in Prague to discuss problems affecting building savings loan products. The EFBS advocates the interests of more than 41 million European building savings clients, whom together have more than 200 billion euros deposited in building savings accounts. Building savings banks have loans on record amounting to 152 billion euros, which from the standpoint of the Czech Republic equates to approximately one annual gross domestic product.
„We very much value the position we've attained within the European Federation over the years,“ says Vladimír Staňura, chairman of the ACSS. The Czech Republic is a standard building savings country, which is also the reason this is the third such meeting to be held in Prague. Development of the domestic market essentially corresponds to the situation in Germany and Austria.
Today, Czech building savings banks are offering the lowest interest rates in their history. Interest rates on building savings loans start at 1,99%. „In the field of unsecured housing loans, building savings loans represent the best option on the market,“ explains Jiří Šedivý, secretary of the ACSS. After all, this year's statistics have confirmed that building savings banks have seen an increase in their loan business compared with the previous year.
The challenge presented by the low interest rate environment, which is common to all economies, is also being faced by European building savings banks. The Czech market is no exception. „Not only are we offering attractive interest rates on loans, we're also offering them on deposits, whereas building savings, in general, continues to be one of the best-appreciating conservative products available,“ says Staňura. Even today the rate of remuneration, which hovers around 1% on average, is still considered in economics to be above standard.
The importance of building savings will increase further once interest rates go up. The conditions being offered today are, by law, guaranteed by building savings banks for a minimum of six years. „The advantages to be had in securing a specific interest rate long into the future, which is one of the defining marks of building savings, have been apparent many times in the past, and I suspect they will be apparent again,“ says Staňura in closing.
On the occasion of the joint press conference of the ACSS and the EFBS, a press release has also been published by the EFBS and can be downloaded by following the link below.
- EFBS reaffirms criticism of Capital Markets Union - Press release of the EFBS