Central bank not to get more power over mortgage market

The Czech central bank will not get the power over the country's mortgage market it wanted to deflate a bubble it sees developing in the housing market, the Reuters news agency reported on Friday.

Lawmakers dropped a bill that would have extended the authority of the Czech National Bank in view of the upcoming parliamentary elections.

The central bank has said repeatedly that Czech property prices seem overvalued and recommended banks adjust lending policies accordingly.

Since April, the bank has recommended that mortgages should not exceed 90 percent of property values and that no more than 15 percent of customers should be given loans worth more than 80 percent of a property's value.