Current Situation on Building Savings Market the Czech Local Scene

Abstract

The present study is focused on building savings schemes, representing the second most popular product for private housing financing in the Czech Republic. In the Czech Republic, building savings schemes can be used as a certain kind of investing free funds and as possible subsequent solution for using building savings credit for private housing purposes. This type of product is provided by specialized banks, i.e., building societies. The objective of the present research is to analyse the development and current situation on the building savings market. It concentrates on the evolution of basic building savings indicators but also on the shares of all five building societies operating on the Czech market on the given indicators. Although, the mortgage credit rates have dropped significantly in recent year and clients rather tend to use this method of financing their housing, building savings schemes still have a significant position on the Czech market. Mainly secondary sources from official providers have been used for this study.