Commentary on the main indicators
The total assets of the Czech banking sector stood at CZK 9,249 billion at the end of October 2021. Loans to residents are the predominant asset item. Their volume reached CZK 6,615 billion. Deposits of residents, which are the most important item among banking sector liabilities, totalled CZK 5,922 billion.
Chart 1 – Assets of the banking sector (CZK billions)
Chart 2 – Liabilities of the banking sector (CZK billions)
The volume of loans to resident households amounted to CZK 2,011 billion in October 2021 and increased by CZK 17 billion month on month. As regards the breakdown of loans to this sector by purpose, loans for house purchase were the largest item (CZK 1,565 billion in October 2021, up by 0.9% month on month). They accounted for 78% of the total volume of loans to households. Consumer credit grew by 0.8% compared to September, to CZK 278 billion. The share of non-performing loans started to decline around mid-2013, from 5.3% in May 2013 to 1.5% in October 2020. The share of non-performing loans increased slightly from November 2020 to May 2021, when it stood at 1.9%. In June 2021, this share began to fall at a moderate pace or be flat again, reaching 1.6% in October.
Chart 3 – Loans to resident households by purpose (CZK billions) and the share of non-performing loans (%)
Turning to the structure of loans to resident non-financial corporations by original maturity (which totalled CZK 1,205 billion in October 2021, up by 1.7%, or CZK 20 billion month on month), long-term loans have the largest share. The volume of long-term loans amounted to CZK 660 billion in October 2021 (55% of the total volume of loans to the sector). The share of non-performing loans in the total volume of loans to non-financial corporations also started to decline at end-2010. While it stood at 9% in December 2010, it was slightly above 3% from January to August 2020. The share of non-performing loans gradually increased from September 2020 to March 2021, when it reached 4.4%. This share fell slightly or was flat in the following months, reaching 3.9% in October.
Chart 4 – Loans to resident non-financial corporations by original maturity (CZK billions) and the share of non-performing loans (%)
- In October 2021, the banking statistics in the Czech Republic were compiled from the source statistics of 46 banks and foreign bank branches active in the Czech Republic (excluding the CNB).