Several comments on the recommendations of the CNB to credit institutions in the mortgage market and their legal nature
2017
Abstract
As of 1 April 2017, the Czech National Bank has tightened its recommendations on the mortgage market. Institutions of the banking sector should not in particular provide mortgage loans beyond 90% of the loan-to-value (LTV) indicator, ie the ratio of the mortgage loan (debt) and the value of the pledged immovable property.
The purpose of the paper is not to contradict the reasoning of such a regulation of the mortgage market but to describe the current recommendations of the CNB on the mortgage market and to highlight some problematic legal aspects that arise from their content, form and factual compliance of credit institutions with these recommendations.