Report says largest banks could loan more in Slovakia

Because of their available capital the five largest banks in Slovakia, which provide two thirds of all company loans, could increase the volume of such loans by 37 percent, or €5.6 billion, stated the Finance Ministry and Slovak central bank (NBS) in a joint report on loan options in Slovakia, the TASR newswire reported.

Because of their available capital the five largest banks in Slovakia, which provide two thirds of all company loans, could increase the volume of such loans by 37 percent, or €5.6 billion, stated the Finance Ministry and Slovak central bank (NBS) in a joint report on loan options in Slovakia, the TASR newswire reported.

The Report on Loan Options in the Banking Sector for the Business Sector was submitted to the government on April 1 and cites data available as of December 31, 2008 which show that banking sector capital exceeds loan requirements by 39 percent. Banks began to be more cautious in providing loans in the second half of last year, especially due to uncertain economic developments and more expensive inter-bank lending, TASR wrote. The banks' attitude became apparent when they began demanding that developers share costs and have contracts for property they want to develop.

According to the report, it can be expected that banks will now hold onto their resources in order to cover possible losses from existing loans and won't use all of their available capital.

“The ability of Slovak banks to provide further loans will, to a certain extent, depend on the willingness of their mother institutions to provide Slovak banks with sufficient resources to cover the risk ensuing from these loans,” concludes the analysis. TASR

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Top stories

Vast damage after the supercell storm in southern Moravia.

Tornado damaged villages just across the Slovak borders

Czech authorities report three dead and hundreds of injured in southern Moravia region.


4 h
A man waits outside a mobile Covid-19 vaccination centre outside Bolton Town Hall, England, where case numbers of the Delta variant have been relatively high.

How to change people's minds about vaccination? Experts hesitant that money is the answer

The state fears a third wave may hit hard in poorly vaccinated districts. The state should try whatever could work, researcher claims.


19 h
The Weekend of Open Parks and Gardens has became a popular event in Slovakia

Pandemic highlights the importance of parks and gardens

Parks and gardens across Slovakia will open during the Weekend of Open Parks and Gardens


20 h
Marian Kocner and his lawyer at the Supreme Court

The wrong way to put things right

Overturning not-guilty verdicts, especially in cases as emotive as the Kuciak murder trial, is a very bad idea.


23 h