Economy and Banking Sector of Slovakia

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.

Location Central Europe
Population (2016)5 426 252 ↑ (0.00%)
EU Status member since 2004
National Currency EUR (Euro) since 1 January 2009
    Nominal GDP (2015)78.1 bln EUR ↑ (+0.04%)
    Nominal GDP per Capita (2015)14 400 EUR ↑ (+0.03%)
    Real GDP Growth (2015)3.6 % ↑ (2014: 2.4 %)
Inflation Rate 
    CPI, MoM (Dec 2016)0.1 % no change(unchanged)
    CPI, YoY (Dec 2016)0.2 % ↑ (Nov 2016: -0.2 %)
    CPI, Year Average (2016)-0.5 % ↓ (2015: -0.3 %)
Unemployment Rate (2015)11.5 % ↓ (2014: 13.2 %)
Government Bond Yield (Dec 2016)1.01 % ↑ (Nov 2016: 0.72 %)
Credit Ratings (as of Sep 2016)
    FitchA+ high credit quality, outlook stable
    Moody'sA2 upper medium grade, outlook stable
    S&PA+ upper medium grade
Double Taxation Agreements 64 signed agreements
Information Exchange 
    Exchange on Request 1 signed agreements
    Automatic Exchange no commitment to start
FATCA IGA in effect since 31 July 2015, Model 1
Banking Sector
Financial Market Development 4.6 (max 7.0) rank: 33rd out of 138 countries
    Banks' Soundness 5.9 (max 7.0) rank: 15th out of 138 countries
Banking Industry Country Risk 4(1 - lowest risk, 10 - highest risk)
    Economy Risk 4
    Industry Risk 4
Deposit Guarantee Scheme 
    Maximum Protected Amount 100 000 EUR
Country Ceiling for Deposits 
    Local Currency (Euro)Aaa prime
    Foreign CurrencyAaa prime
Deposit Rates (Nov 2016, EUR)2.04 % ↑ (Oct 2016: 0.97 %)
Banking Sector Structure 
    Number of Banks31
    Recent Changes (2016) new banks: 2, closed banks: 0
    Consolidated Assets (2015) 67 353.45 mln EUR ↑ (+7.84%)
Major Banks
 Slovenska Sporitelna (Erste Bank)  UniCredit Bank Czech Republic and Slovakia
 VUB Banka (Intesa)  Postova banka
 Tatra Banka (Raiffeisen)  Prima Banka (Penta Group)
 List of Banks in Slovakia

Slovakian Economy

National Currency

Slovakia joined the Euro Area on 1 January 2009. The preceding national currency, Slovak koruna (SKK), was replaced by Euro.



According to Eurostat, nominal GDP of Slovakia in 2015 was 78.1 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 (2005 - 2015). In 2015 real GDP growth was 3.6% which was above the Euro Area average (1.6%) and above the European Union average (1.9%). Real GDP growth in 2016 - 2021 are IMF's estimates.

Real GDP Growth in Slovakia.
Chart 1. Real GDP Growth in Slovakia. Source: Eurostat, International Monetary Fund.

In 2015, nominal GDP per capita in Slovakia was 14 400 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 -17.7% over the past 10 years (2005 - 2015). GDP per capita at PPP in 2016 - 2021 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  Slovakia; European Union = 100.
Chart 2. GDP Per Capita at Purchasing Power Parity in Slovakia; European Union = 100.

Inflation Rate

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 - 2021 are IMF's estimates.

Inflation Rate in Slovakia.
Chart 3. Inflation Rate in Slovakia. Source: Eurostat, International Monetary Fund.

Taxation in Slovakia

Double Taxation Agreements

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 01 January 2013 the date of coming into force is given in brackets):

 Bosnia and Herzegovina
 Czech Republic
 Korea, Republic of
 Kuwait (Apr 2014)
 Moldova, Republic of
 Russian Federation
 South Africa
 Sri Lanka
 Syrian Arab Republic
 United Kingdom
 United States

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 01 January 2013 of signing the agreement is given in brackets):


Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

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.

There are also several agreements between Slovakia and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):

 Guernsey (Oct 2013)

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Slovakia didn't sign the automatic information exchange agreement and didn't indicate a timeline of the start of the automatic information exchange.

Further Information:
Automatic Exchange of Information on Financial Accounts
Countries Which Will Not Automatically Exchange Account 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).

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.

Further Information:
FATCA and European countries


Slovakian Banking Sector

Financial Market Development

According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in Slovakia is scored 4.6 out of maximum 7.0 and ranked 33rd out of 138 analysed economies. Soundness of banks is scored 5.9 bringing Slovakia into the 15th place, trustworthiness and confidence of financial market is scored 5.0 (28th place).

Financial Market Development in Slovakia.
Chart 4. Financial Market Development in Slovakia. Source: WEF.

Banking Industry Country Risk

Banking Industry Country Risk Assessment (BICRA) is a methodology designed by Standard&Poor's "to evaluate and compare global banking systems". A BICRA is scored on a scale from 1 to 10, ranging from the lowest-risk banking systems (group 1) to the highest-risk (group 10). The BICRA methodology has two main analytical components: "economic risk" and "industry risk". Each of the components is then further divided into 3 "factors" that result in an economic and industry risk score for each country.

Slovakia is included into group '4' with economic risk scored '4' and industry risk scored '4'.

BICRA Group 4
Economic risk 4
    Economic resilience intermediate
     Economic imbalances intermediate
    Credit risk in economy intermediate
Industry risk 4
    Institutional framework intermediate
    Competitive dynamics intermediate
    Systemwide funding intermediate
Government support assessment supportive

Table 1. BICRA for Slovakia. Source: S&P's.


Deposit Guarantee Scheme

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:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Slovakia are summarised in Table 2.

Scheme Participantsall credit institutions operating in Slovakia, branches of Slovakian banks abroad
Scheme Exemptionsbranches of foreign banks (covered by their home countries)
Eligible Depositorsnatural persons, legal entities
Covered Accountsany credit balance
Maximum Protected Amount100 000 EUR
Paid In CurrencyEUR

Table 2. Deposit guarantee scheme in Slovakia.

Further Information:
Deposit Guarantee Schemes in Europe


Country Ceiling for Deposits

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) deposit ceiling for Slovakia is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).


Deposit Rates

In Nov 2016, an agreed annualised deposit rate in local currency (Euro) of new contracts with agreed maturity up to 1 year between credit institutions and households was 2.04% which was above the Euro Area average (0.44%).

Deposit Rates in Slovakia.
Chart 5. Deposit Rates in Slovakia. Source: ECB.


Banking Sector Structure

Currently there are 31 credit institutions operating in Slovakia.

Recent structural changes (2013 - 2016) of the banking sector of Slovakia are summarised in Table 3.

Number of Opened Banks1002
Number of Closed Banks0010

Table 3. Recent structural changes in the banking sector of Slovakia.

All the credit institutions operating in Slovakia can be classified into several categories. Table 4 summarises the number of banks in each category.

CategoryNumber of Banks
Branches of foreign banks15
Central banks1

Table 4. Number of banks by category in Slovakia.

The list of the most recently opened banks in Slovakia is provided in Table 5.

NameStart Date
 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 5. The most recently opened banks in Slovakia.

There are 17 branches of foreign banks from 10 different countries in Slovakia. Table 6 shows the number of branches grouped by the country of origin.

Country of OriginNumber of Branches
 Czech Republic5

Table 6. Number of branches of foreign banks in Slovakia grouped by country of origin.


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