May 26, 2016 / 11:47 AM / a year ago

Slovakia's central bank to decide on counter-cyclical buffer on banks soon

BRATISLAVA, May 26 (Reuters) - Slovakia's central bank will decide during the summer whether to impose a counter-cyclical capital buffer on banks, it said on Thursday.

Presenting its annual financial stability report, the bank said the banking sector was resilient but low interest rates would put more pressure on profits in the future, causing lenders to reconsider their dividend policies.

Slovakian banks, which are mostly foreign owned, have held up well in recent years, backed by low loan-to-deposit ratios, relatively high capital adequacy rates and an economy that has outpaced its euro zone peers. (Reporting by Tatiana Jancarikova; Writing by Jason Hovet; Editing by Susan Fenton)

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