Slovakia C bank ready to reduce capital buffer for banks again

Slovakia's central bank (NBS) in its latest quarterly commentary on macroeconomic prudence policy said that it has been carefully monitoring the situation on the financial market and is ready to reduce further the counter-cyclical capital buffer for banks if the situation worsens. The NBS Bank Board this week decided to cut the counter-cyclical capital buffer rate from 1.5 percent to 1 percent as of August 1. "The main goal of the decision was to enable banks to use the capital buffer in connection with the increased creation of provisions and to provide sufficient available capital to finance growth in loans," the NBS said.