Moody's: Slovak banks stable

The fundamental credit outlook for the Slovak banking system is stable, reflecting the rated banks' focus on traditional banking activities, their generally sound financial fundamentals and low risk appetite, Moody's said in a new report.

The outlook also is underpinned by the operating environment, which has not deteriorated as rapidly as in some other Central and East European countries, the agency said, and by the relatively limited impact of the global banking crisis on Slovak financial institutions.

The sector has benefited from strong domestic economic growth and relatively low interest rate environment in recent years, which have underpinned the strong loan growth on the market, Moody's said.

However, as the credit crisis is spreading into Central Europe, Slovak banks are becoming more cautious due to tightening liquidity and worsening macro economic conditions, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.