IDEAS home Printed from https://ideas.repec.org/p/imf/imfscr/2025-074.html
   My bibliography  Save this paper

Slovak Republic: Financial System Stability Assessment

Author

Listed:
  • International Monetary Fund

Abstract

This paper discusses Financial Sector Stability Assessment report as part of Financial Sector Assessment Program (FSAP) in Slovak Republic. The Slovak Republic FSAP took place amidst an economic recovery and tighter financial conditions, despite the start of an accommodative cycle and signs of overvaluation in real estate markets. The financial system remains predominantly bank-centered, highly concentrated, with significant foreign ownership and no material direct interconnections within the system. Banks rely on a domestically oriented traditional business model and maintain high capital buffers and ample liquidity. The systemic risk analysis focuses on the banking, nonfinancial corporates, and real-estate sectors. Key risks to financial stability stem from external factors coupled with potential corrections in residential and commercial real estate valuations. The stress tests found the banking system resilient to severe macro-financial shocks with all banks meeting minimum capital requirements and most banks remaining liquid against adverse shocks. It is imperative to strengthen supervisory powers to ensure operational independence and streamlining off-site supervisory activities to align with risk classification; and strengthening on-site inspections for key risk areas.

Suggested Citation

  • International Monetary Fund, 2025. "Slovak Republic: Financial System Stability Assessment," IMF Staff Country Reports 2025/074, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2025/074
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=565444
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfscr:2025/074. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.