Polish Financial Supervision Authority (KNF) called to pay special attention to long-term loans with high DSTI (Debt-Service-to-Income). Such loans may lead to excessive indebtedness of some households and generate excessive risk for banks, KNF warned. DSTI is the ratio of the monthly value of all repaid loan installments to the monthly net income of households.
"The incomplete data shows that in 2018 the banks granted loans in the amount exceeding PLN 10 billion, in which the maturity exceeded 5 years, and the DSTI exceeded the level of 50%," KNF report showed.
The portfolio of consumer loans is characterized by a higher share of loans with higher DSTI rates than the portfolio of housing loans, KNF specified.