PRAGUE Oct 17 Czech banks expect tightening of
lending standards for mortgages in the fourth quarter due to a
new consumer credit act coming into effect and tougher
recommendations on loan limits from the central bank, the bank
said in its lending survey on Monday.
Some banks also expect consumer credit loan standards to
tighten while conditions for company loans to ease, the survey
said. Banks widely expect increasing demand for loans in the
fourth quarter, it said.
Record low interest rates are helping a mortgage boom in the
Czech Republic, driving up housing prices. The central bank
tightened its recommendations to banks this month to lend no
more than 95 percent of a property's purchase price.
(Reporting by Jason Hovet; Editing by Toby Chopra)