The total value of outstanding bank loans in Slovakia grew 6.3% y/y to EUR 44.39bn as of end-May 2014, slowing from a 6.6% annual rise the month before, data by the central bank showed.
Commercial banks’ corporate loan book increased 1.3% y/y to EUR 15.87bn as of end-May, after a 1.6% y/y increase the previous month. Lending to households advanced by an annual 10.5% to EUR 21.4bn, following a 10.3 % rise at the end of April.
On a monthly basis, the total value of outstanding bank loans dropped by 1% from April when it rose by 1.4%.
In May alone, the Slovak banks extended a total of EUR 1.77bn in new loans, up from EUR 1.57bn in April. The new loans extended in May were also 18.9% up on the year.
IntelliNews comment: Slovakia's lending activity will continue rising in the months to come supported by an increase in private consumption amid improved consumer confidence. However, the high unemployment rate in the country along with expected stricter rules imposed by the central bank regarding mortgage loans could have a negative impact on the bank’s lending portfolio.
|Loans granted, outstanding amounts, EUR mn||May-14||Apr-14||Apr-13||y/y change||m/m change|
|Loans - total||44,389.4||44,832.8||41,762.8||6.3%||-1.0%|
|Loans to non-financial corporations||15,870.9||16,019.2||15,671.9||1.3%||-0.9%|
|Loans to households||21,405.4||21,162.0||19,374.4||10.5%||1.2%|
|Loans for house purchase||14,354.4||14,038.4||13,104.4||9.5%||2.3%|
|New Loans, EUR mn|
|New Loans - total||1,772.0||1,574.3||1,490.8||18.9%||12.6%|
|--loans for house purchases||586.1||530.4||500.5||17.1%||10.5%|
|----other loans for house purchases||392.6||349.1||365.3||7.5%||12.4%|
|Source: National Bank of Slovakia|
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