Statement from the 1st Meeting of the Bank

The 1st Meeting of the Bank Board of Národná banka Slovenska was held on 08 January 2008, chaired by Ivan Sramko, Governor.

The Bank Board approved the Report on fulfilment and process of preparations for the euro introduction in the NBS. The preparation proceeds in accordance with the internal plan of the NBS for the euro introduction and the National euro changeover plan in the Slovak Republic. The Bank Board of the NBS discussed and approved the Strategy of Národná banka Slovenska in the area of supervision of the financial market. The Bank Board of the NBS discussed the Financial Stability Report for the first half of 2007. The full-text material will be posted on the NBS´s website.

In terms of financial stability, benign internal conditions persisted in Slovakia over the first half of 2007, while external risks deepened. These increased sharply in August 2007 when the worsening credit discipline in the U.S. mortgage market spread into market of credit risk transfer (market with securities backed by credits). Consequently, the uncertainty among market participants led to the restriction of available liquidity in advanced countries´ money market. The financial system of the Slovak Republic was not directly and significantly influenced by this situation. Also indirect negative effects (via decline in global economy performance) on the domestic financial stability are considered relatively weak. From the point of view of internal factors impact on financial stability an increased focus must be given to credit risk, linked with the mitigation of credit standards, crediting of small and medium-size enterprises and low-income households.

Jana Kováčová
Spokesperson of the NBS

National Bank of Slovakia
Communications Section
Imricha Karvasa 1, 813 25 Bratislava, Slovak Republic
Tel.: +421-2-5787 2161,+421-2-5865 2161, +421-2-5787 2166, +421-2-5865 2166
Internet: http://www.nbs.sk

Reproduction is permitted provided that the source is acknowledged.