BRATISLAVA, July 16, (WEBNOVINY) — Most European banking groups that also operate in Slovakia through their affiliations are sufficiently capitalized to withstand macroeconomic turmoil. Osterreichische Volksbanken AG is the only one of seven banking groups active in Slovakia, whose core Tier 1 capital ratio missed the 5-percent minimum required by the European Banking Authority (EBA) in the EU stress tests, the Finance Ministry briefed on the outcome of tests released on Friday by the EBA.
However, the ministry rushed to add that the stress tests are standard tools to assess the resilience of the banking sector but they do not forecast further development. Nonetheless, respective authorities are now passing measures regarding the test outcome. “As regards the results of the stress tests the respective Austrian bodies have taken necessary steps. Although Volksbank Slovensko, a Slovak arm of the given banking group, was included in the tests only indirectly and though the results do not require intervention on part of the relevant Slovak authorities, the National Bank of Slovakia will closely watch the situation in the given bank,” the Finance Ministry stated.
Fourteen Slovak banks, including eight lenders that were indirect participants in the EU-wide tests, underwent a regular national stress test based on individual scenarios and methodologies this year. “The outcome of tests carried out by the National Bank of Slovakia has proven resilience of the Slovak banking sector against adverse macroeconomic scenarios as well as the sector’s stability,” a statement by the Finance Ministry reads. Both the ministry and the central bank declared readiness to adopt essential measures to maintain the stability of the banking sector if necessary.
SITA
