The vision optics of the Slovak banking sector in comparison with the banks of the other countries of Vysegrad Four group confirms a positive effect of privatization and foreign strategic investors entering the market.

This information is based on a comparative study of selected banks which was prepared and presented in Bratislava by a team of experts from Andersen Consulting. The authors of the study document their argument on ROE indicator, which for example in Polish banks achieved in average 27.5% with inflation rate being 13%. In case of our banks this indicator was 11.6% and inflation rate was 6.5%.

Comparative study is based on results of five to eight largest banks in each country. For our country the sample of banks was represented by: Vseobecna uverova banka (General Credit Bank), Slovenska sporitelna (Slovak Savings Bank), Investicna a rozvojova banka (Investment and Development Bank), Tatrabanka and Polnobanka.

Selected Slovak banks compared to banks in Poland, Hungary and the Czech Republic show a better developed network of branches, and they achieve also significantly higher number of issued payment cards.

According to the analysis of Andersen Consulting the Slovak market is typical by growing and more and more demanding requirements of clients, increasing competition especially from foreign and private banks, and also an increasing level of regulation and control. The study also confirmed that in the area of market division the largest Slovak banks are losing their share to lower, but more creative competitors.

The authors of the analysis, however, agree that the balance of strengths and weaknesses of Slovak large banks requires adopting effective measures, the application of which would help them to get among the prosperous banks in the Central European area.

Slovak Trade FORUM