Consumer Credit in the Czech Republic

2020 IMPACT

Growth in card lending outpaces overall growth in consumer credit

Card lending continued to register strong growth in gross lending and outstanding balance terms in 2020 as the COVID-19 pandemic led consumers towards convenient types of consumer credit which offer good value for short-term borrowing. Growth in card lending outpaced overall growth in consumer credit overall during 2020, in spite of the decline seen in the numbers of credit cards and charge cards in circulation.

Stricter approach to lending suppresses growth across consumer credit

Non-card lending registered a strong positive performance in gross lending and outstanding balance terms in 2020. Home lending had a particularly good year as growth was spurred by the desire of many homeowners to renovate and extend their living space during the COVID-19 pandemic.

Auto lending sees negative growth as big-ticket purchases are put off

Auto lending was the only category of consumer credit to register negative growth in outstanding balance and cross lending terms over the course of 2020. The main reason for the category’s struggles was the adverse economic environment that has prevailed in the Czech Republic since the onset of the COVID-19 pandemic.

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