Prague - Building societies in the Czech Republic signed over 321,000 contracts in January-May, 108,000 contracts more than a year earlier, but the volume of loans provided in the period dropped by 17 percent to Kc15.3bn, according to data from all five domestic building societies.
All building societies on the Czech market registered a lower volume of loans in the monitored period.
Building societies use their money, that is client deposits, to provide loans, while mortgage banks mostly borrow money to grant loans. Interest rates depend on the length of the fixation period and on interbank rates. Interest rates on mortgage loans are currently at record-low levels.
In the entire year 2013, building societies granted loans worth Kc44.7bn, an increase of 2 percent compared with 2012. They signed over 611,000 new contracts on home building savings, including contracts on an increase in the target amount of savings, a growth from 580,000 new contracts a year earlier.