Categorised loans in CNB statistics

The Czech National Bank started publishing time series of the categorised loans of commercial banks on 31 August 2006.

Categorised loans methodology

The CNB monitors categorised loans in two ways:

 

1. within the money and banking statistics, where categorised loans are monitored not only by category (standard, watch, substandard, doubtful and loss loans), but also by industry, economic sector, loan purpose and contractual maturity. The methodology for these data is the same as that for loan data for monetary purposes, i.e. excluding banks’ foreign branches. Loans are reported at nominal value (excluding accrued interest) and monitored at gross value (i.e. before adjustment for provisions).
2. within the banking supervision statistics, where categorised loans are monitored for the purposes of assessing whether banks create sufficient provisions and adhere to prudential rules. Categorised loans broken down by category are only monitored for credit institutions and other clients. These data are based on a methodology reflecting the needs of banking supervision, i.e. the data include banks’ foreign branches, loan values include accrued interest, and loans are monitored both at gross value before impairment and at net value adjusted for provisions in the case of receivables valued at amortised cost and for accumulated loss in the case of receivables designated at fair value; the receivables of the trading portfolio are not categorised.

 

In view of the different methodologies, and with regard to a number of significant swings in the volume of categorised loans, related above all to banking sector privatisation, only data based on banking supervision statistics have been published so far (in the form of press releases, the Basic Banking Sector Indicators on the CNB website, in banking supervision publications, etc.). As a rule, these data were published excluding data for Konsolidační banka (until 2001), banks under conservatorship and the specific loan to Slovenská inkasní (until 2001).

Publication of categorised loans

The completion of privatisation, the transformation of Konsolidační banka into Česká konsolidační agentura and other events significantly reduced the volume of categorised loans in the banking sector and simultaneously eliminated a number of non-standard factors that had to be taken into consideration when interpreting the evolution of categorised loans. Analyses of loan portfolio quality now increasingly focus also on the structure of categorised loans by economic sector, loan purpose etc. These data, which have not been published so far, are available within the money and banking statistics.

A number of queries from experts and the general public have resulted in the CNB’s decision to publish categorised loans data based on the money and banking statistics in addition to those relying on banking supervision statistics. The time series begin in 2002, which can be regarded, to a great extent, as the year since when categorised loans have been affected mostly by economic developments rather than non-standard factors connected with privatisation etc.

The time series of categorised loans of commercial banks are published in the ARAD database in the “Statistics – Money and banking statistics – Banking statistics” section of the CNB’s website - Loans by category.