Bank Housing Loans at SKK 234.091 Bln. by the End of August

The overall volume of housing loans that banks and home savings banks in Slovakia provided to their clients amounted to SKK 234.091 billion (EUR 7.77 billion) by the end of August 2008, with SKK 4.372 billion (EUR 145.1 million) provided in August alone. Mortgage loans represented the biggest portion of this sum at SKK 106.847 billion (EUR 3.547 billion). Other real estate loans stood at SKK 73.174 billion (EUR 2.429 billion) and home saving loans were SKK 54.07 billion (EUR 1.795 billion), according to data of the National Bank of Slovakia (NBS).

Within all kinds of housing loans, the biggest portion fell to VUB Banka, with a market share of 22.13 percent. Close to VUB Banka was Slovenska Sporitelna with a market share of 21.59 percent. VUB Banka dominated among mortgage lenders. It posted a market share of 33.6 percent in late August followed by Tatra Banka with 31.89 percent. As for home saving loans, Prva Stavebna Sporitelna was clearly in first place with a market share of 85.31 percent.

Loans without a specific purpose and secured by real estate constituted 28.459 billion (EUR 944.7 million). Tatra Banka had a 31.66 percent share of this volume, Slovenska Sporitelna 18.63 percent and VUB Banka 18.54 percent.

Twenty commercial banks and home savings banks provide real estate loans in Slovakia. Nine banks hold licenses to provide mortgages. In the past, banks gradually expanded possibilities to finance housing, to include consumer loans secured by real estate or other housing loans, which, in some cases, have replaced classic mortgages. Some banks now barely provide classic mortgages. Three home savings banks operate on the Slovak home savings market.