National Bank of Slovakia outlines risks

Negative developments abroad in terms of the coronavirus pandemic, credit default and a possible worsening when it comes to financing the economy are the main risks for the financial sector in Slovakia. The risks were specified in a financial stability report published by Slovakia's central bank on Tuesday. "Even our prompt reaction has changed nothing about the fact that we have found ourselves on the brink of a global recession," said Vladimir Dvoracek, a representative of the Bank Council. As he stated, banks in Slovakia are entering this crisis with weakened profitability but a very strong capital position, as financial houses have behaved cautiously, holding on to profits from the previous year. Stress testing carried out by Slovakia's central bank has shown that the banking sector should be able to handle even a significant increase in losses.