NBS: Slovak Financial Sector Remains Stable Despite Uncertainty

Bratislava, 25 November (TASR) - The Slovak financial sector stands on solid foundations, even though the surrounding environment remains a source of persistent risks, according to the latest Report on Financial Stability as of November 2025 that was presented by central bank (NBS) representatives at a news conference on Tuesday. The global economy is going through a period of trade tensions, geopolitical uncertainty and a slowdown in growth. Although Slovak banks, firms and households are entering it from relatively good positions, developments in the external environment and their impact on the financial sector require increased attention, stated NBS. "If we look at the geopolitical risks, at the global economy, there's a lot of uncertainty, and when we look at the domestic economy, we cab see slower growth here as well. These are all things that could affect financial stability in the upcoming period. However, when it comes to the situation for our households, our banks, it's very good. This makes us think that our households and businesses should be able to cope even in these challenging times," stated NBS Bank Board member and executive director of the NBS supervision and financial stability section Vladimir Dvoracek. Dvoracek pointed out that the situation in the industrial sector worsened this summer, with August bringing a decline in orders, sales and exports for companies, and September and October not turning out to be strong months, either. "Due to weaker economic growth, companies and households will face a relatively uncertain period, and low-income households and weaker companies might have problems repaying their loans. However, we don't see this in the figures yet, with the share of non-performing loans being at the same low levels as we've seen in the past," stressed Dvoracek. According to Dvoracek, the banking sector is a strong pillar of the Slovak economy, with banks continuing to making stable profits. "There was lower growth for a temporary period, caused by the bank levy. We see profit and its growth being stable in the future, even though the profitability and return on capital in the Slovak banking sector still doesn't reach the European level; it's approaching it only slowly," explained Dvoracek, adding that other indicators in the banking sector, such as capital and liquidity, are also at very good levels. According to the NBS Bank Board member, the central bank has had no reason to change its macro-prudential policy setting for a long time. "We expect it to be this way in the future when it comes to the measures that are set in relation to debtors and the counter-cyclical capital cushion," added Dvoracek. ko/df