No risks for Slovak banks says Fitch

Ratings agency Fitch Ratings has announced that the Slovak banking sector is not at risk of any major destabilising factors, although the profit of Slovak banks will continue to be subdued over the short and medium term.

While other banks in Europe are suffering, Slovak banks seem to be sustaining profit thanks to the high level and stable base of deposits, which has also helped buffer liquidity problems. Among other issues, the ratio of granted credits to deposits is still under 90 %.

Fitch also feels that the low level of foreign currency credits is a positive element, but it does feel that bank sector profits will still be lower than those enjoyed in the past.

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