The Czech banking sector’s ability to deal with potential shocks is stronger than a year ago and banks could cope with a very strong recession in a worst-case scenario, the central bank said in a yearly health check of lenders on Tuesday. Highlighting one potential risk, the bank said in its annual report it would tighten mortgage lending rules from October due to “highly relaxed” conditions, although it did not see any overheating in home loans, which have been a strong driver of growth in recent years.
