Located in Central Europe, Slovakia is a memberof the European Union since 2004 and of the Economic Monetary Union since 2009.
Slovakia is a high-income, developed economy with a high standard of living. Slovakia successfully transformed from a centrally planned economy to a market-driven economy.
The banking sector of Slovakia is highly concentrated and is dominated by foreign-controlled banks. Banks in Slovakia operate as universal banks.
Slovakia joined the Euro Area on 1 January 2009. The preceding national currency, Slovak koruna (SKK), was replaced by Euro.
|Nominal GDP (2016)||Nominal GDP per Capita (2016)||Real GDP Growth (2016)|
|81.0 bln EUR (+0.04%)||14 900 EUR (+0.03%)||3.3 % (2015: 3.6 %)|
According to Eurostat, nominal GDP of Slovakia in 2016 was 81.0 bln EUR.
Slovakia outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.3% over the past 10 years (2006 - 2016). In 2016 real GDP growth was 3.3% which was above the Euro Area average (1.8%) and above the European Union average (1.9%). Real GDP growth in 2017 - 2022 are IMF's estimates.
Chart 1. Real GDP Growth in Slovakia. Source: Eurostat, International Monetary Fund.
In 2016, nominal GDP per capita in Slovakia was 14 900 EUR.
Slovakia has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -17.2% over the past 10 years (2006 - 2016). GDP per capita at PPP in 2017 - 2022 are IMF's estimates.
Chart 2. GDP Per Capita at Purchasing Power Parity in Slovakia; European Union = 100.
|CPI, MoM (Sep 2017)||CPI, YoY (Sep 2017)||CPI, Year Average (2016)|
|0.2 % (Aug 2017: 0.0 %)||1.8 % (Aug 2017: 1.6 %)||-0.5 % (2015: -0.3 %)|
According to Eurostat, inflation rate in Slovakia in 2016 expressed as annual percentages of average consumer prices was -0.5% which was below the Euro Area average (0.2%) and below the European Union average (0.3%). Inflation rates in 2017 - 2022 are IMF's estimates.
Chart 3. Inflation Rate in Slovakia. Source: Eurostat, International Monetary Fund.
|Unemployment Rate (2016)|
|9.7 % (2015: 11.5 %)|
|Government Bond Yield (Sep 2017)|
|0.82 % (Aug 2017: 0.83 %)|
Chart 4. Government bond yield of Slovakia. Source: Eurostat.
|A+ (high credit quality), outlook stable||A2 (upper medium grade), outlook stable|
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Slovakia signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Slovakia and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 1 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
There are also several agreements between Slovakia and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):
Slovakia didn't sign the automatic information exchange agreement and didn't indicate a timeline of the start of the automatic information exchange.
Slovakia has signed bilateral agreements with 58 jurisdictions to automatically receive information:
Slovakia has signed bilateral agreements with 67 jurisdictions to automatically send information:
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
|FATCA Status in Slovakia|
|IGA in effect since 31 July 2015, Model 1|
Slovakia has FATCA agreement with the U.S. in effect since 31 July 2015 (Intergovernmental Agreement Model 1). Financial institutions operating in Slovakia are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Slovakian financial accounts hold in U.S. financial institutions will be reported to Slovakian authorities.
|Financial Market Development|
|4.6 (max 7.0), 32nd out of 138 countries|
|5.9 (max 7.0), 15th out of 138 countries|
According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Slovakia is scored 4.6 out of maximum 7.0 and ranked 32nd out of 138 analysed economies, trustworthiness and confidence of financial market is scored 5.0 (28th place).
Chart 5. Financial Market Development in Slovakia. Source: WEF.
Soundness of banks is scored 5.9 bringing Slovakia into the 15th place.
Chart 6. Soundness of Banks in Slovakia. Source: WEF.
|Maximum Protected Amount|
|100 000 EUR|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Slovakia are summarised in Table 1.
|Scheme Participants||all credit institutions operating in Slovakia, branches of Slovakian banks abroad|
|Scheme Exemptions||branches of foreign banks (covered by their home countries)|
|Eligible Depositors||natural persons, legal entities|
|Covered Accounts||any credit balance|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||EUR|
Table 1. Deposit guarantee scheme in Slovakia.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
|Local Currency (Euro)||Foreign Currency|
|Aaa (prime)||Aaa (prime)|
Local currency (Euro) deposit ceiling for Slovakia is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
|Average Deposit Rate (Aug 2017, EUR)|
|0.55 % (Jul 2017: 0.54 %)|
Chart 7. Deposit Rates in Slovakia. Source: ECB.
|Number of Banks|
|Consolidated Assets (2016)|
|73 051.11 mln EUR (+8.46%)|
|Recent Changes (2016)|
|new banks: 2, closed banks: 0|
Currently there are 28 credit institutions operating in Slovakia.
In 2016 consolidated banking assets in Slovakia were 73 051.11 mln EUR. The consolidated banking assets' evolution is shown at Chart 8 below.
Chart 8. Consolidated banking assets in Slovakia.
Recent structural changes (2013 - 2016) of the banking sector of Slovakia are summarised in Table 2.
|Number of Opened Banks||1||0||0||2|
|Number of Closed Banks||0||0||1||0|
Table 2. Recent structural changes in the banking sector of Slovakia.
The list of the most recently opened banks in Slovakia is provided in Table 3.
|COFIDIS SA, pobočka zahraničnej banky (new)||December 2016|
|BNP PARIBAS PERSONAL FINANCE SA, pobočka zahraničnej banky (new)||July 2016|
|KDB Bank Europe Ltd., pobočka zahraničnej banky (new)||August 2013|
Table 3. The most recently opened banks in Slovakia.
All the credit institutions operating in Slovakia can be classified into several categories. Table 4 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||15|
|Housing savings banks||3|
There are 15 branches of foreign banks from 9 different countries in Slovakia. Table 5 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|
|1||Slovenská sporiteľňa, a.s.|
|2||Všeobecná úverová banka, a.s.|
|3||Tatra banka, a.s.|
|4||Československá obchodná banka, a.s.|
|5||UniCredit Bank Czech Republic and Slovakia|
|7||Prima banka Slovensko, a.s.|