BUSINESS IN SHORT

NBS: banking sector has stabilised

THE SLOVAK banking sector boosted its stability in the first six months of 2010, according to a financial sector analysis by the National Bank of Slovakia (NBS), the country’s central bank. Improvement of the situation on the financial markets in the USA and Europe significantly contributed to the stabilisation.

THE SLOVAK banking sector boosted its stability in the first six months of 2010, according to a financial sector analysis by the National Bank of Slovakia (NBS), the country’s central bank. Improvement of the situation on the financial markets in the USA and Europe significantly contributed to the stabilisation.

“Stabilisation on financial markets in the USA and Europe influenced dissipating insecurity and bolstering liquidity,” the SITA newswire quoted Vladimír Dvořáček, the director of the NBS’ financial market supervision department, as saying. “Negative impacts gradually surfaced, especially regarding the debts of some EU countries. This was mostly translated into a decrease in bond prices.”

Banks in Slovakia have strengthened their financial position and their profits went up by more than one-third after the slump in profitability in 2009, Dvořáček said. The central bank expects this trend to continue in the second half of this year.

According to the NBS, banks in Slovakia are still behaving somewhat conservatively and activities they perform are perceived as less risky. Nevertheless, some banks invested in riskier assets including Greek bonds, which accounted for 4 percent of the overall volume of bonds held by the entire banking sector at the end of July, representing about €600 million.


Get daily Slovak news directly to your inbox

Top stories

News digest: Lockdown not out of the question, PM Matovič says

The overview of news from Wednesday, October 21, 2020.

PM Igor Matovič says lockdown is still in play.

A curfew for those who refuse testing? Lawyers and president have doubts

The government risks the Constitutional Court canceling the nationwide testing.

Illustrative stock photo

The cabinet approves plan for permanent kurzarbeit

The new fund is expected to be introduced from 2022.

Labour Minister Milan Krajniak