Slovak Republic

Since the 2007 FSAP update, the Národná banka Slovenska (NBS) has made significant progress in implementing and advancing the macroprudential policy framework. In response to a build-up of mortgage risks and imbalances in the residential real estate market, the NBS, as the designated macroprudential authority, issued a non-binding recommendation in 2014 on loan-to-value (LTV), debt-service-to-income (DSTI), and maturity limits. These recommendations became binding in early 2017 and have been progressively tightened, including by adding a debt-to-income (DTI) limit to the regulatory toolkit. Borrower-based measures (BBMs) have been complemented by the activation of a counter cyclical capital buffer (CCyB) in 2017, supplementing existing capital conservation buffer (CCoB) and other systemically important institutions (O-SII) buffers. Authorities have also established a credit register to collect individual borrower data for households. As a member of the euro area, Slovakia collaborates extensively with European regulators on macroprudential policymaking.