NBS sends recommendations on capital stability to banks

Slovak banks will receive advice the National Bank of Slovakia (NBS), Slovakia's central bank, about how to support their own stability and self-sufficiency, especially in the sphere of capital and liquidity, the TASR newswire reported.

Slovak banks will receive advice the National Bank of Slovakia (NBS), Slovakia's central bank, about how to support their own stability and self-sufficiency, especially in the sphere of capital and liquidity, the TASR newswire reported.

The recommendations are being provided in response to current developments on the financial markets linked to the debt crisis in Europe. One of the specific risks may be an increase in the banking levy, which could negatively affect the profits of the banks and their ability to strengthen their capital position, according to NBS. However, the central bank considers the Slovak banking sector to be stable, with one of the highest levels of capital adequacy – i.e. the percentage ratio of a financial institution’s primary capital to its assets, used as a measure of its financial strength and stability – in the European Union.

“There are new, growing concerns about the stability of the banking sector in the countries of central and eastern Europe regarding the close interconnection of the subsidiaries in these countries to their parent companies,” representatives of the NBS said, as quoted by TASR.

One of the recommendations to banks with a licence in Slovakia is to sustain their capital adequacy at a level of at least 9 percent as well as to create sufficient reserves which could be used in critical situations.

For banks with a capital adequacy of under 9.625 percent, the NBS recommends using 100 percent of their profits to top up their own resources, while for banks with a capital adequacy over 11.5 percent, the NBS does not see any reason to increase reserves, TASR wrote.

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.

Get daily Slovak news directly to your inbox

Top stories

News digest: Nationwide testing gained contours

The Defence Ministry reveals details on upcoming testing, removal of the STU rector was far from normal. Take a look at our latest news digest.

President Zuzana Čaputová meeting with scientists and experts on epidemiology, infectology and medicine.

Senate voted STU rector down. Police called to the uni as well

The session of the Academic Senate proposed that Rector Fikar be dismissed.

Miroslav Fikar

Dozens of people die of COVID every day. A drop not expected for at least two weeks

People who would otherwise survive may die of other serious diagnoses due to the epidemic.

Illustrative stock photo

Slovakia orders a curfew and embarks on its COVID experiment

High turnout in testing in four northern districts, decision awaited on extending the project to the nation. Prison for a prominent prosecutor and parliament's speaker injured.

Waiting for the results of COVID tests during the pilot phase of the nationwide testing in the town of Nižná in Orava, northern Slovakia.