Decree No. 399 / 2021 Coll.
Ordinance on credit indicators
Valid
Order
Effective from 01.01.2022
Text versions:
01.01.2022
04.11.2021
399
DECLARATION
of 25 October 2021
on credit indicators
The Czech National Bank provides pursuant to § 45a (6) of Act No. 6 / 1993 Coll., on the Czech National Bank, as amended by Act No. 219 / 2021 Coll.:
Subject matter
This decree regulates the method and rules for the calculation of credit indicators, including the definition of the individual items included in the calculation.
LTV indicator
The person entitled to provide consumer credit (hereinafter referred to as "the credit provider") shall calculate the LTV indicator, expressed as a percentage, according to the formula
LTV = LV · 100,
where
L denotes the total amount of consumer debt on consumer loans secured by the same residential property under Regulation (EU) No 575 / 2013 of the European Parliament and of the Council ("residential property ') 1) calculated according to the formula
L = NL + OL,
where
NL refers to the total amount of principal of the newly granted consumer credit secured by residential real estate,
OL refers to the total amount of consumer debt, including the outstanding principal, of the already agreed consumer loans secured by the same residential property as the newly granted consumer credit,
V denotes the value of the residential property providing the newly provided consumer credit determined in accordance with § 113 (3) of Act No. 257 / 2016 Coll., on consumer credit, as amended, with the consumer credit intended for the construction or reconstruction of the residential property being the so determined value of the residential property after completion of its construction or reconstruction.
DSTI indicator
The credit provider shall calculate the DSTI indicator expressed as a percentage according to the formula
DSTI = DSI · 100,
where
DS denotes consumer expenditure resulting from the total amount of consumer debt under § 4, calculated according to the formula
DS = ITIS
where
The same applies to the payment of principal, interest and directly related payment in relation to the consumer's debt, which is part of the total amount of consumer's debt,
the residual maturity of the ith debt in months;
I denotes the consumer's income, which means the amount of monthly income after tax, assessed prudently as permanent on the basis of proven income history over a sufficiently long period; income includes income from dependent activities, income from independent activities, pensions from pension insurance, supplementary pension savings benefits, pension supplementary insurance benefits, benefits for disabled persons, sickness insurance benefits, maintenance and other similar periodic income, rental or real estate payment income, income from financial instruments and, where appropriate, other demonstrably sustainable income.
DTI indicator
The credit provider shall calculate the DTI indicator according to the formula
DTI = D12I,
where
D denotes the total amount of consumer debt calculated according to the formula
D = L + OD,
where
L denotes the total amount of consumer debt from consumer loans secured by the same residential property, calculated mutatis mutandis as for the LTV indicator,
OD refers to the total amount of consumer debt from loans already agreed on other than those included in the calculation of L-item, including the outstanding principal of such loans,
I denotes the consumer's income under § 3.
(1) Prior to the approval of the consumer loan secured by residential real estate, the provider of the credit shall calculate the credit indicator for which the Czech National Bank has established an upper limit by measure of a general nature in accordance with Section 45b (1) of the Czech National Bank Act, with a rounding to 2 decimal places.
(2) The values given in the numerator and denominator of the credit indicators are shown in Czech crowns. For the conversion of foreign exchange values into Czech crowns, the rate declared by the Czech National Bank is used for the day preceding the credit indicator calculation date.
(1) The amount of the consumer's debt vis-à-vis the credit provider may be deducted from the same consumer's deposit claim with the same credit provider or from the debt security issued by the same credit provider, provided that such deposit or debt paper is part of the protection of the consumer's debt concerned.
(2) Consumer debt shall not be included in the total amount of consumer debt at the level in which it will be paid by the newly granted consumer credit secured by residential real estate.
(3) Where several consumers from the newly granted consumer credit are obliged to comply jointly and severally, they shall be considered as one consumer for the purpose of calculating the credit indicators. In that case, all credit debts for which at least one of those consumers is the debtor shall be included in the calculation of the total amount of consumer debt.
(4) If the consumer's agreed consumer credit or the newly granted consumer credit is secured by multiple residential property, the denominator in the LTV indicator (item V) is the sum of the values of residential property providing such consumer credit, as determined in accordance with Section 113 (3) of Act No 257 / 2016 Coll., on Consumer Credit, as amended.
(5) If the residential property providing consumer credit is already used to secure consumer debt from non-consumer loans or from other persons, the denominator of the LTV indicator (item V) may include a maximum amount by which the value of that residential property determined in accordance with Section 113 (3) of Act No 257 / 2016 Coll., on consumer credit, as amended, exceeds the amount of consumer debt security from non-consumer loans and other persons' debts by that residential property.
Efficacy
This Decree shall take effect on 1 January 2022.
Governor:
v. Ing. Mora, M. E., v. r.
Vice-Governor
1) Point (75) of Article 4 (1) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council on prudential requirements for credit institutions and amending Regulation (EU) No 648 / 2012, as amended.
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Regulation Information
| Citation | Decree No. 399 / 2021 Coll., on Credit Indicators |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 04.11.2021 |
|---|---|
| Effective from | 01.01.2022 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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