Stricter mortgage rules, in force since October, apply not only to new
contracts but also to refinancing existing housing loans, the business
daily Hospodářské noviny writes, citing a central bank spokesperson.
According to the report, this is in direct contradiction with what the Czech National Bank governor Jiří Rusnok said in June, taking some commercial lenders by surprise.
As the United Arab Emirates continue to lower their country’s economic dependency on oil, new opportunities are on the rise. Czech companies, for whom the UAE are the biggest trading partner in the Persian Gulf, see the upcoming EXPO 2020, a Universal Exposition to be held in Dubai in two years’ time, as a great opportunity to extend trade relations. This week saw a special trade mission, made up of Czech companies, travel to the UAE and explore prospective business deals.
Czech banks may see profits drop by hundreds of millions of crowns due to
the Markets in Financial Instruments Directive (MiFID II), which forces
lenders to reveal how much they bill customers for exchange rate hedging
operations, a source told the daily E15.
Part of Europe’s biggest regulatory overhaul in a decade, the regulations in part were intended to stop banks from selling products that clients do not need or understand.
Czech banks, especially established lenders, have had a reputation of charging high and hidden fees. Newcomers to the market often highlight transparency in this regard to win over customers.
The weakening crown coupled with robust wage growth could lead Czech central bankers to consider the first back-to-back increase in interest rates in over a decade at their next policy-setting meeting, the Bloomberg news agency reported on Tuesday, citing interviews with two board members keen to cool the overheating economy.
The number of Czechs using internet banking has steeply increased over the past ten years. While in 2008, only about 12 percent of Czechs made their payments via the internet, last year it was 57 percent, the Czech News Agency reported on Wednesday, citing data released by the European Statistical Office, Eurostat.
The trade surplus widened in April compared with a year earlier. It climbed
to 15.8 billion crowns, 3.8 billion more than in the same period in 2017.
The main factors fuelling the surplus were car, machinery, and electrical equipment exports. The main dents in the surplus came from increased imports of chemicals and coke.
The Czech trade surplus so far this year stands at 73.6 billion crowns. The statistical office said the overall trend is for decreasing exports and stagnating imports.