The Council of the National Bank of Slovakia (NBS) approved the measure which is understood as the most criticized decision of NBS so far. The main purpose of this measure is to restrict the loans provided for entrepreneurial purposes in foreign currencies.

The new method of formulating the minimum reserve ratio of assets and liabilities kept in foreign currencies, which is required to be followed by banks, is now less favourable.

Consequently the domestic banks are in a competitive disadvantage position to those based abroad. In addition the foreign capital flow will be restricted by this controversial decision.

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