Changes in Consumer Credit Market in Slovakia
Changes in Consumer Credit Market in Slovakia

Author(s): Michal Mešťan, Maroš Malíček, Matej Žofaj, Ivan Králik
Subject(s): Business Economy / Management, Financial Markets, Socio-Economic Research
Published by: Masarykova univerzita nakladatelství
Keywords: banks; non-banks; annual percentage rate of charge; interest rates; consumer credit;
Summary/Abstract: Slovak households have been among the fastest-growing debtors of all EU countries in the past 10 years. Consumer credit regulation in Slovakia over the last 3 years has considerably tightened the terms of consumer credit provision not only for banks but especially for non-bank entities that have had to undergo relicensing. In this article, we focus on the analysis of consumer behavior and the structure of consumer credit granted to households by banks and non-bank entities, taking into account the volumes of new loans and their prices, expressed in interest rates and annual percentage rate of charge. At the same time, we evaluate the real effect of the tightened regulation on the consumer credit market for households in Slovakia.

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