ADVERTISEMENT

Slovak stress tests show banking sector well shielded

Analysis

A stress test by Slovakia has shown its banks have sufficient capital buffers to withstand shocks, although their profitability could be severely hit as growth prospects worsen in the small euro zone member, Reuters reported. The sector’s capital adequacy was 15.7% at the end of 2012, the highest since 2005, and probably reached 16.6% after the anticipated retention of some earnings for the last year. The weakest bank showed a 12.3% capital buffer. Under all three model scenarios, banks in the euro zone member would keep capital adequacy way above the 8% required by the Basel banking regulations implemented since the 2008 financial crisis. The central bank said that under its baseline scenario, which sees 1.3% growth this year, no bank would require additional capital.

ADVERTISEMENT

Poland: Almost 42% more entities disappeared on year in Q1  Analysis

Poland: Almost 42% more entities disappeared on year in Q1 

Parl't elects Orbán prime minister Parliament

Parl't elects Orbán prime minister

New managing director at LG Electronics Hungary Appointments

New managing director at LG Electronics Hungary

Hungary Grande Partenza 'exceeded all expectations' - gov't ... City

Hungary Grande Partenza 'exceeded all expectations' - gov't ...

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.