Financial stability considerations for Slovakia in the context of ECB monetary stance

?udomír ?lahor (), ?tefan Rychtárik () and Matú? Bandúr ()
Additional contact information
?udomír ?lahor: Faculty of management, Comenius University
?tefan Rychtárik: National Bank of Slovakia
Matú? Bandúr: Faculty of management, Comenius University

No 2204962, Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences

Abstract: The Euro Area monetary policy has been recently facing many challenges. To meet its objectives related to the price stability, the ECB has been conducting an accommodative policy including several extraordinary measures. Apart from improvements in inflationary expectations, these moves, however, also lead to very low interest rates and flattening of the yield curve. In our work, we examine potential negative impacts of this environment on European banks with particular focus on the Slovak banking sector via narrowing of interest margins and growing indebtedness of households. We show this impact to be asymmetrical within the Euro Area mostly due to divergence of banks? business models. These results are consequently interpreted in the context of banks?s lending policies and capital buffers. Results of our work underline the importance of active macro-prudential policy conducted at national level aimed at offsetting unintended side effects of current monetary policy in the Euro Area.

Keywords: Monetary operations; Financial stability; Banking sector (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Pages: 1 page
Date: 2015-09
References: Add references at CitEc
Citations:

Published in Proceedings of the Proceedings of the 4th Economics & Finance Conference, London, Sep 2015, pages 53-53

Downloads: (external link)
https://iises.net/proceedings/4th-economics-financ ... =22&iid=053&rid=4962 First version, 2015

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sek:iefpro:2204962

Access Statistics for this paper

More papers in Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences
Bibliographic data for series maintained by Klara Cermakova ().