October 14, 2019 / 8:43 AM / 4 months ago

Some Czech banks see tighter mortgage conditions in Q4-survey

PRAGUE, Oct 14 (Reuters) - A part of the Czech banking sector expects tighter credit conditions for mortgages and consumer loans in the fourth quarter amid a slight increase for home purchase loans, a central bank survey summary showed on Monday.

In the survey, the central bank said a small section of the banking market tightened credit standards for house purchase loans in the third quarter, which was related to changes in internal processes and fine-tuning compliance with tougher lending recommendations from the regulator.

Easing of credit was helped by a decrease in banks’ cost of funds, the survey. Overall, banks indicated unchanged conditions in the third quarter, it said, and demand for mortgage loans also rose. The bank also said demand had been dampened by high property prices.

“Only a small section of the market expects credit standards to tighten further and demand for loans for house purchase to increase in Q4,” the survey said.

The survey added banks did not expect conditions or demand for corporate loans to change in the final quarter of 2019. (Reporting by Jason Hovet)

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