Finances and Advisory, page 9
Investment and taxes in Slovakia
Slovaks consolidate loans
LOAN consolidations are being propelled by record low interest rates, leading to increased competition among banks for retail clients.
Old-school investment still paying off
HOUSING construction savings accounts, once heavily incentivised by the state, remain popular. While the tax benefits offered by the government have fallen, interest rates remain considerably higher than those offered by basic savings accounts.
Banking moves online
CHANGING technology has a strong impact on all economic sectors, but perhaps none more so than on banking. Even as banks adapt, there are still more prospects for a shift towards virtual banking, with smartphones likely playing a key role.
New challenges for auditors
AUDITING is facing several challenges in the form of new rules from the European Commission, as well as drastic price competition and difficulties attracting talent. The Slovak Spectator spoke about these issues and more with Dalimil Draganovský, partner and head of assurance of EY in Slovakia; Ján Bobocký, director of audit at Deloitte in Slovakia; and Bart Waterloos, partner of VGD - AVOS Bratislava.
Ministry proposes virtual cash registers
DOCTORS, dentists and hoteliers are exempt from having to use cash registers, but the Finance Ministry is proposing to scrap this exception in an effort to curb tax evasion. The proposal has met with protest from some business owners, who point to the increased costs that come with registers. To silence the criticism, the ministry has introduced virtual cash registers, which will be free of charge. Though some professions see this as a positive step, they also point to potential risks.
Combating tax evasion
TAX cobra and VAT ledger statements are the most commonly cited measures adopted to combat tax evasion and avoidance, and they are already starting to get results. These are part of a series of measures adopted by the Finance Ministry, for which fighting tax evasion has become a major priority.
Health problems abroad
WHEN travelling abroad, whether for business, study or holiday, Slovaks are exposed to numerous risks. Based on the statistics of the biggest insurance company in Slovakia, Allianz– Slovenská Poisťovňa, published in mid-May, subtropical and tropical countries pose the greatest risks, especially due to the different climate and hygienic conditions.
Slovak insurance sector stays the course
THE SLOVAK insurance sector saw no dramatic changes last year, while stabilisation in the eurozone was reflected in developments in Slovakia, too, which mirrored those in other countries in the region. Expectations with respect to positive developments in macro-economic indicators are optimistic. In addition, the insurance sector is preparing for Solvency II and the payment of the first pensions from the so-called second, private, old-age insurance pillar.
Car insurance scam revealed
THE NATIONAL criminal agency has uncovered a group of seven people who filed fraudulent claims worth €775,000 with an insurance company over fictitious car accidents.
Gender equality laws change insurance
ALTHOUGH women live longer, are healthier and according to statistics often exercise greater caution than men, a new EU directive means that both genders pay equally for insurance. Companies in Slovakia had to adapt to the directive authorised by the European Court of Justice and are no longer able to use gender when calculating insurance premiums or benefits.
More people buying insurance online
NEW technologies are impacting the insurance industry and several companies in Slovakia now sell insurance policies via the internet or mobiles – along with reporting an increased interest from clients in these channels.
Policies may grow obsolete
HOLDERS of life insurance policies in Slovakia should check to see whether their policies still cover all their needs.
Extreme weather brings spike in claims
THE HEAVY wind, rain and floods that hit northeastern Slovakia in mid-May caused damage to households in the affected areas totalling €1.8 million, while insurance companies expect still more claims and damages to be reported, the Sme daily reported on May 25. Since not all households in Slovakia are insured, the total cost of the damage is much higher.
Internet banking up
THE NUMBER of Slovaks using internet banking has almost doubled over the last five years. While only a bit more than two people out of 10 administered their finances online in 2008, now it is four in 10, the latest survey by Poštová Banka showed.
Institutions and organisations in the banking sector
Ministry of Finance, www.finance.gov.skMinister: Peter KažimírNational Bank of Slovakia (NBS),www.nbs.sk Slovak Banking Association,www.sbaonline.sk
Banks not closing branches
BANKS in Slovakia continue to open new branches despite an increasing number of clients using internet banking. This trend in Slovakia runs contrary to the results of a study by consultancy firm Bain & Company, forecasting that banks in the European Union will close 40 percent of their branch offices, the Sme daily wrote on April 22.
Credit registers dictate loan conditions
CREDIT registers collect information about the payment history and discipline of borrowers and help banks assess the creditworthiness of loan applicants. Applicants can benefit from the registers too, as those with a good credit history and discipline have increased chances of getting a loan, and at a better rate.
Banking sector up
THE SLOVAK banking sector increased its profitability in 2013 and further improved its capital adequacy in 2013, with banks doing well thanks especially to sound growth in retail loans, which translated into a boost in net interest income. The National Bank of Slovakia (NBS) wrote this in its analysis of the Slovak financial sector for 2013, the TASR newswire reported.
Payments go mobile
THOUGH the technology to use mobile devices for making payments developed quickly, various complications have prevented it from really taking off. Near Field Communication (NFC) technology offers a user-friendly solution to the mobile payment hang-up, but requires coordination between banks and mobile operators, and infrastructure in shops. Yet, with Slovakia considered the European leader in adopting innovative solutions, NFC mobile payments may soon become routine.
Banking Banana Skin
THE BIGGEST risk of the banking and financial sector in Slovakia is underrating risks when trying to achieve set goals. This is one of the findings of the latest CSFI’s biennial Banking Banana Skins survey, produced in association with PwC. The poll was based on responses from more than 650 bankers, banking regulators and close observers of the banking industry in 59 countries, including Slovakia. The survey shows snapshots of the risk landscape in the financial services sector.
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