BUSINESS IN SHORT

More powers for NBS

SLOVAKIA’S central bank is likely to receive more supervisory powers over other financial institutions in Slovakia. This will be possible due to the amendment to the Bank Act passed by the government on April 9, through which it will implement a number of European Union directives designed to ensure greater supervision over banks by supervisory bodies, the TASR newswire reported.The new regulatory framework will concern all banks in the EU.

SLOVAKIA’S central bank is likely to receive more supervisory powers over other financial institutions in Slovakia. This will be possible due to the amendment to the Bank Act passed by the government on April 9, through which it will implement a number of European Union directives designed to ensure greater supervision over banks by supervisory bodies, the TASR newswire reported.
The new regulatory framework will concern all banks in the EU.

“By introducing sterner requirements on banks and stock traders, the risk of their failure can be minimised, which will contribute toward greater stability of the financial system within Slovakia as well as the EU,” reads the motion, as cited by TASR.

After the new legislation comes into effect, the National Bank of Slovakia (NBS) will be required to inform the European supervisory body when a Slovak bank experiences problems that could put the entire banking sector at risk. Moreover, it would be entitled to step up inspections, request the submission of special reports and scrutinise the bank’s plans.

The banks will also be obliged to cooperate with the NBS when addressing a crisis situation. Moreover, banks and branches of foreign banks will be required to maintain their liquidity and solvency permanently. They will also have to inform the NBS about a failure or expected failure to meet their obligations without delay and, subsequently, submit to the NBS a plan for a timely recovery of liquidity index compliance, as reported by TASR.

Get daily Slovak news directly to your inbox

Top stories

News digest: Pilot testing deemed successful

Coronavirus affects bus connections, gastronomy businesses send an open letter to the prime minister. Take a look at the latest in our news digest.

PM Igor Matovič presents the results of the pilot nationwide testing on October 26.

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.

No balanced budget for next three years, this time due to COVID-19

2021-2023 general government budgets lack consolidation measures.

Finance Minister Eduard Heger