In the Southeast Europe (SEE) banking has changed significantly. Before 2008 crisis the largest growth of assets was in housing loans, today the growth is noticeable, first of all, in the non-purpose cash loans.
The central bank of Slovakia, NBS continues to regulate the loan market in order to stop the rising indebtedness of Slovaks. While the first measures were introduced last year, the new ones were put in place in July.
The market risk for the European banking sector–associated with growing volatility, potential liquidity shortages and the possibility of drops in asset prices–increased at the turn of the year and is currently at a high level.
The European Systemic Risk Board published a report on solving the problem of non-performing loans in the European Union. ESRB stressed that the condition of those loans can threaten stability of the financial system.