Regulatory Alerts2018-01-01
Decree of NBS No 7/2018 amending Decree No 10/2016 on housing loan assessment
Národná banka Slovenska issued Decree No 7/2018 to amend Decree No 10/2016 by introducing a maximum debt-to-income ratio limit of 8 and a strict Loan-to-Value cap of 0.9 for housing loans. The regulation mandates that high-risk loans exceeding these thresholds are subject to quarterly volume caps, which phase down from 20% to 10% for DTI breaches and from 35% to 25% for LTV breaches between July 2018 and June 2019. These measures aim to strengthen borrower repayment capacity assessments and mitigate systemic risks in the Slovak housing credit market.
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