2024-05-21 01:59:10
- The BNB tightened the regime of mortgage loans
- Banks are obliged to look not solely at earnings, however have already got correct values of who is not going to return the cash
- Monetary establishments will report each three months
Regardless of the steadiness and continued development of banks’ income, the BNB determined to additional tighten the distribution of mortgage loans.
On Monday, the central financial institution introduced that they’re introducing 6 necessary standards that monetary establishments should adjust to when granting housing loans.
Compliance with the brand new necessities
can be tracked for every credit score,
till it’s extinguished. They’re additionally necessary when renegotiating outdated loans.
The standards on which will probably be judged are literally primarily associated to the earnings relative to the value of the home and the time period for reimbursement of loans. Primarily based on them, an evaluation can be made as as to if the individual requesting the mortgage is dangerous.
Banks should monitor the ratio between the quantity of the mortgage and the worth of the house that serves as collateral, what common money owed the borrower has and the way a lot cash he provides for his or her service, what share of the earnings can be used to repay the precise mortgage mortgage. For this objective, banks will have in mind the month-to-month and annual earnings. The final criterion given by the BNB is for the time period of the mortgage.
The central financial institution has additionally adopted a strategy for calculation and obliges banks to report each three months. This is applicable to every mortgage granted and the whole quantity of loans. Supervision can be strict, the choice states.
Within the causes from the BNB they provide
instance with different EU international locations,
which have already launched related restrictions
in lending. It seems that there are such within the majority of nations – 24 out of a complete of 28 member states.
Consultants in credit score financing summarized the measures as follows – individuals who ask the financial institution for as much as 80% of its worth, not more than 40% of their earnings will go to reimbursement of installments, and the reimbursement time period may have an opportunity to get a house mortgage sooner or later it is not going to be longer than 30 years.
Within the causes for the choice on the imposition of the standards
from the BNB are in a rush to reassure
that there isn’t a drawback with banks in Bulgaria
They level out that the impact of the measures launched to date reveals that in Bulgaria on the finish of 2023 the mixed buffer requirement of the banking system is 8.1% of the whole threat exposures. That is virtually one of many highest necessities in Europe. An instance is provided that within the majority of different European international locations this buffer is 3.6%.
Nonetheless, the BNB factors out that housing loans have a steady price of development, particularly pronounced within the final two years. On the finish of 2023, the quantity has reached BGN 22 billion. Right here, the massive banks have a market share of almost 80%, which makes BGN 17.9 billion.
What worries the central financial institution to some extent is the info that greater than half of this quantity has been accrued within the final two years. The gross quantity of newly granted housing loans is BGN 5.2 billion in 2022 and BGN 5.8 billion in 2023. For the primary quarter of 2024, newly granted loans are BGN 1.7 billion.
One other concern is that evaluation of information from the banking system reveals that the debt burden within the first quarter of 2024 is being distributed
for 25.2 years – that’s, that is the common time period
of withdrawn mortgages
In comparison with 2022, it will increase as a result of then it was 24.3 years. The BNB factors out that the tendency to extend the time period is especially because of the improve within the common sum of money borrowed from the banks. This impact got here from the rise in housing costs. For instance, within the first quarter of this yr, the common quantity of a mortgage for a property was BGN 198,000 in comparison with BGN 156,000 on common for 2022.
Nonetheless, for now in our nation the share of mortgages in comparison with all different property and credit of the banking system stays comparatively low. It’s 12.6% of property and 20.7% of complete loans and advances.
The standard of housing loans stays at a great stage in opposition to the background of
long-term downward development of
non-performing loans
by way of quantity and share, in line with the BNB. On the finish of 2023, the loans that aren’t paid are BGN 332 million. They’ve decreased greater than 5 instances in comparison with 2015. And the provisions that the banks put aside to cowl drawback loans stay enough – 50%.