Slovak banking sector among safest in Europe

Slovakia's banking sector recorded 0.7 percent year-on-year profit increase of €560 million, the Slovak National Bank (NBS) reported in the 2014 Report on financial market development. Market risks in the banking sector remained at a low level, however, liquidity deteriorated slightly. "Banks are experiencing high exposure towards selected clients or their own financial groups," reported NBS, adding that some high exposures are towards clients in countries perceived as risky, which include Russia and Cyprus. Financial institutions experienced last year a record increase in loans, as in retail they increased to 12.2 percent in December 2014, which is the highest value since the financial crisis, adds the report. Bank deposits also grew. The bank sector registered profits of €560 million. This figure was influenced negatively by an increase in operating costs and also taxes and levies. The Slovak National Bank is predicting a deepening of this influence, mostly because of cost increase relating to the implementation of the banking union. Nonetheless, the Slovak banking sector belongs to the safest in Europe and all banks in Slovakia fulfil regulatory requirements, the Slovak National Bank adds.