Regulatory Alerts2021-01-01
Decree No. 399/2021 Coll. on Credit Ratios
The Czech National Bank issued Decree No. 399/2021 Coll. to establish the mandatory calculation methods and definitions for Loan-to-Value (LTV), Debt-Service-to-Income (DSTI), and Debt-to-Income (DTI) ratios. Credit providers are required to compute these metrics using specific formulas that account for total consumer debt, property values, and prudently assessed stable income before approving residential secured consumer credit. The decree further specifies rules for currency conversion, debt deductions, joint borrowers, and multiple property collateral, entering into force on 1 January 2022.
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