April 30, 2019 / 12:32 PM / 3 months ago

Slovak central bank keeps extra capital buffer for banks at 1.50 pct

BRATISLAVA, April 30 (Reuters) - The Slovak central bank decided on Tuesday to keep its countercyclical capital buffer for banks at 1.50 percent, a level banks will have to meet from Aug. 1 to boost the banking sector’s resilience amid high loan growth.

Loans to households grew by 9.5 percent year-on-year in March, a slowdown from 10.3 percent growth in December, the central bank said.

Slovakia became the first euro zone country two years ago to first introduce the countercyclical buffer, imposing a rate of 0.5 percent which came into effect in August 2017. The rate rose to 1.25 percent in August 2018.

Only a handful of other European states have placed the charge on lenders, including neighbouring Czech Republic - both having battled hot real estate markets.

Slovakia’s banks, including CSOB, Postova Banka, Slovenska Sporitelna, Tatra Banka and VUB , are largely foreign-owned and have avoided troubles seen by other banks in Europe in the decade since the global financial crisis.

Reporting By Tatiana Jancarikova; Editing by Jason Hovet

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below