Economic uncertainty persists but Slovak financial sector shows resilience

The Slovak financial sector is performing well, with high resilience. Risks from rising prices and higher interest rates are easing. Future risks are shifting from inflation to uncertain economic growth, particularly in Germany. The latest Financial Stability Report from the National Bank of Slovakia (NBS) highlighted several positive developments, including lower inflation and falling interest rates, creating better conditions for borrowers. However, some risks remain, such as concerns over economic growth in the Eurozone and geopolitical tensions. The outlook for 2025 is uncertain, which prevents the NBS from relaxing certain macro prudential measures for now. The NBS is closely monitoring global and local risks that could impact financial stability in the future. Despite these challenges, the financial sector remains strong, with banks maintaining profitability and solid capital adequacy, even after the introduction of the bank levy. The sector also has good liquidity, and stress tests show positive results.

Source: TASR