NBS finds Slovak banks stable and resilient towards shock

THE SLOVAK banking sector remains very stable with a high level of resilience towards negative developments, the National Bank of Slovakia (NBS), country’s central bank, said on May 27.

THE SLOVAK banking sector remains very stable with a high level of resilience towards negative developments, the National Bank of Slovakia (NBS), country’s central bank, said on May 27.

“The capital adequacy ratio has increased to its highest level since 2005,” said Vladimír Dvořáček, head of the financial market supervision department of the NBS, as quoted by the TASR newswire.

The capital adequacy ratio in Slovak banks reached 17.2 percent in February 2014. According to Dvořáček, it will be important to prevent the level of equity from falling substantially so that Slovak banks will be able to meet other criteria that NBS will require in the future.

Another indicator of sound developments in the Slovak banking sector is the risk appetite of Slovak banks, which increased by 9.2 percent year-on-year at the end of March, mainly due to an increase in loans provided to households, which has had a positive effect on interest income. Nonetheless, the NBS does not expect this trend to continue, so the structure of banks’ profits may change in the future, TASR wrote.

The central bank is optimistic when it comes to the outlook for the stability of the Slovak banking sector. Slovakia’s economy is growing, albeit moderately, with no imbalances emerging. The positive contribution of domestic demand is one important factor, along with rising profits in the private sector and positive developments in Slovakia’s net exports, as reported by TASR.

The country’s economy is reviving, which is being accompanied by growing confidence on financial markets, while another key factor is interest rates, which have been low over the long term.

Source: TASR

Compiled by Radka Minarechová from press reports

The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Top stories

Refugees on a train in Hungary.

Fico government firm on anti-migrant stand

The Slovak government however admitted that “there is a real threat that we will face the pressure of the member states that the migrants are heading to, on our own”.

Prison, illustrative stock photo.

For first time in Slovak History, two lifers may walk out of jail

FOR THE first time in Slovakia’s history, two convicts sentenced to life in prison may be released on parole.

Richnava

Police attacked during skirmish at Roma settlement

POLICE officers came under attack by locals at a Roma settlement near Richňava in Košice Region on September 1. Police were summoned to the settlement by paramedics because of a brawl that erupted between…

PM Robert Fico and his wife Svetlana

Fico has neither account, nor company stake in Belize

SLOVAK Prime Minister Robert Fico and his wife do not have and have never had any banking accounts in Belize, and do not hold any stake and do not have managerial control in any company registered in Belize.

MOST READ ARTICLES


  1. Increase in number of Slovak millionaires outpaces the rest of Europe
  2. Fico government firm on anti-migrant stand
  3. Slovak grandfather receives birthday wishes from all over the world
  4. Slovakia and its shameful policy on refugees
  5. SIAF air fest was attended by 140,000 spectators, many pilots
  6. Refugees barricaded themselves in Medveďov camp
  7. For first time in Slovak History, two lifers may walk out of jail
  8. Police attacked during skirmish at Roma settlement
  9. Slovak man's story part of Titanic exhibition in Bratislava
  10. V4 summit on immigration to take place in Prague on Friday
  1. Increase in number of Slovak millionaires outpaces the rest of Europe
  2. Slovakia and its shameful policy on refugees
  3. Police stopped extremists’ ride to Gabčíkovo
  4. SIAF air fest was attended by 140,000 spectators, many pilots
  5. SEWS leaves Slovakia for Romania, buying the land under the plant
  6. Fico has neither account, nor company stake in Belize
  7. Slovak grandfather receives birthday wishes from all over the world
  8. Fico government firm on anti-migrant stand
  9. Thousands join Plea for Humanity
  10. Fico: Countries on outer Schengen border should protect it properly
  1. Slovakia and its shameful policy on refugees
  2. Increase in number of Slovak millionaires outpaces the rest of Europe
  3. Slovak grandfather receives birthday wishes from all over the world
  4. SIAF air fest was attended by 140,000 spectators, many pilots
  5. Slovak man's story part of Titanic exhibition in Bratislava
  6. Crooks may land €2 million in land deals for Jaguar Land Rover
  7. Police stopped extremists’ ride to Gabčíkovo
  8. Refugees die in a truck near Slovak border in Austria
  9. Interior Minister surprised by news of refugee camp close to Austrian border
  10. Fico: Countries on outer Schengen border should protect it properly