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Code of Conduct on Home Loans

Agreement on a Voluntary Code of Conduct on Pre-Contractual Information for Home Loans (“Code of Conduct” hereafter) was agreed under the auspices of the European Commission by the representatives of European associations of the credit institutions and the representatives of the European consumer associations on 5 March 2001. The European Commission issued at the same time a Recommendation for Pre-Contractual Information on Mortgages (2001/193/EC).

The purpose of both these documents is to set certain standards on the information given to the clients prior to the conclusion of a contract on a home loan, applicable for banks and other credit institutions particularly with respect to transparency and comparability. Accession to the Code is open both for banks and other financial institutions and, primarily, for their national or other associations.

Upon a decision by the CBA Board the Czech Banking Association acceded to the Code of Conduct in September 2005. A Standard of Banking Activities, covering identical sphere, was issued at the same time by the CBA and member banks were invited to accede to this Standard and to the Code of Conduct. The banks, who decide to accede to the Code Conduct should deliver an official notification to the central registry kept by the European Commission in the course of forthcoming six months. The full implementation of the Code rules into practice is assumed in the time not exceeding the year end 2006.

List of banks, that acceded to the CBA Standard No. 18 ”Principles of Providing Pre-contractual Information on Home Loans” (”Principles” are introducing the European ”Code of Conduct on Home Loans” into the Czech Republic):

Association of Czech Building Savings Banks announced, that on its working session, held on 24 November 2005, representatives of the member building savings banks informed about the decision of their boards on the acceptance of the CBA Standard No. 18/2005. Each building savings bank separately will inform the CBA office and the public, from which date the Standard is going to be applied: 

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