ABSTRACT
This chapter presents the main development trends in the Slovak banking sector during 1993-1997. It focuses on the monetary policy of the National Bank of Slovakia. The chapter presents the foreign exchange policy and exchange rate regime for the country. It explores the landscape of Slovak commercial banks. The development of the restructuring process in the Slovak banking sector is analyzed with special attention paid to following: the causes of the loan portfolio problem in Slovakia; the measures prepared and adopted to take care of this problem; and the restructuring program. During the initial stages of restructuring, new rules were introduced for the classification of bank receivables and off-balance sheet liabilities by the risk involved and for the creation of resources for risk coverage. A significant aspect of the restructuring process in the banking sector is the relationship between banks and their clients.
