October 17, 2016 / 11:26 AM / a year ago

Czech central bank restricts Sberbank's property lending

PRAGUE, Oct 17 (Reuters) - The Czech central bank has put certain restrictions on the local subsidiary of Russian lender Sberbank’s property lending, the bank said on Monday.

Czech media reported that the central bank banned Sberbank, one of the smaller lenders on the Czech market, from providing such loans in general, which the bank denied.

“It is not a general restriction, but a certain limit on new projects which were not and are not a key segment for Sberbank in this type of financing,” Sberbank spokeswoman Hana Drapalova said.

“The restriction affects project and realty financing only in those cases where a project rating model was used,” she said, adding the rating model’s final adjustments are expected to be made in November so that it meets the central bank’s demands.

Sberbank declined to comment on the volume of loans affected. The central bank confirmed the measures.

The Czech banking system as a whole has maintained profitability and required no bailouts during and since the global financial crisis.

Sberbank reported assets of 74 billion crowns ($3.07 billion) as of June 30, while its Tier 1 capital adequacy ratio was 16.03 percent. ($1 = 24.0990 Czech crowns) (Reporting by Robert Muller; Editing by Greg Mahlich)

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