Central bank to get new supervisory powers

The Slovak Central Bank (NBS) is due to receive more extensive supervisory powers over financial institutes in Slovakia, as the amendment to the Bank Act will implement a number of EU directives to ensure greater supervision over banks. The bill sponsored by the Finance Ministry along with NBS is scheduled to be discussed by the government on April 9. The new regulation framework will concern all banks in EU, the TASR newswire reported. “By introducing sterner requirements on banks and stock traders the risk of their failure can be minimised; which will contribute to greater stability of the financial system within the Slovak Republic as well as the EU,” reads the motion. After the new legislation comes into effect, NBS will have new responsibilities. If, for instance, a Slovak bank were to experience troubles that could pose a risk for the entire banking sector, NBS would be obliged to immediately inform the European supervisory body about the situation. It would also be entitled to step up inspections, request the submission of special reports or scrutinise the bank’s plans. Under the new law, co-operation with NBS when addressing a crisis situation will be mandatory for banks. Banks and branches of foreign banks will be required to maintain their liquidity and solvency permanently. “Banks and branches of foreign banks are required to inform NBS without delay about a failure or expected failure to meet their duties and, subsequently, submit to NBS a plan for a timely recovery of liquidity index compliance,” TASR the text.

The Slovak Central Bank (NBS) is due to receive more extensive supervisory powers over financial institutes in Slovakia, as the amendment to the Bank Act will implement a number of EU directives to ensure greater supervision over banks.

The bill sponsored by the Finance Ministry along with NBS is scheduled to be discussed by the government on April 9. The new regulation framework will concern all banks in EU, the TASR newswire reported. “By introducing sterner requirements on banks and stock traders the risk of their failure can be minimised; which will contribute to greater stability of the financial system within the Slovak Republic as well as the EU,” reads the motion.

After the new legislation comes into effect, NBS will have new responsibilities. If, for instance, a Slovak bank were to experience troubles that could pose a risk for the entire banking sector, NBS would be obliged to immediately inform the European supervisory body about the situation. It would also be entitled to step up inspections, request the submission of special reports or scrutinise the bank’s plans.

Under the new law, co-operation with NBS when addressing a crisis situation will be mandatory for banks. Banks and branches of foreign banks will be required to maintain their liquidity and solvency permanently. “Banks and branches of foreign banks are required to inform NBS without delay about a failure or expected failure to meet their duties and, subsequently, submit to NBS a plan for a timely recovery of liquidity index compliance,” TASR the text.

(Source: 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.

Get daily Slovak news directly to your inbox

Top stories

Health Ministry gearing up for COVID vaccines

Mass campaign planned to get people to take jab.

Illustrative stock photo

He was almost murdered. Instead, he is to become general prosecutor

It was not clear whether the election would take place on December 3 until the very last moment.

Maroš Žilinka

Žilinka elected the next general prosecutor

He received 132 votes out of the 147 present MPs.

Maroš Žilinka

Grandson turns his blue-haired grandma into an Instagram sensation

President Zuzana Čaputová is one of her nearly 13,000 followers.

Photographer Marek Pupák takes pictures of his grandmother. He also created the blue.grandma profile on Instagram, where he posts the photos of her.