May 8 (SeeNews) - Slovenian banks have increased their resilience to systemic risks as their net interest income rose, the central bank said.
"With the record high profits of the banking system, we improved the resilience rating in the area of solvency and profitability to high, with a stable outlook for the coming quarters," the central bank said in a Financial Stability Report issued earlier this week. "The current macroprudential instruments continue to be oriented especially towards strengthening the banking system's resilience."
Deposits from non-banking sources continue to offer consistent financing for banks. While banks increased deposit interest rates later and less aggressively compared to other countries in the euro area, the adjustment was sufficient to motivate savers to allocate a portion of their savings, Banka Slovenije said.
The central bank noted it set the interest rate risk rating at high to moderate with a stable trend.
"The credit risk assessment also remains moderate. Portfolio quality indicators at the level of the entire portfolio remain favourable and stable, and higher shares of non-performing loans are present in manufacturing activities," Banka Slovenije added.
Because of the rising incidence of cyber attacks, the central bank elevated the cyber risk rating to a heightened level with a stable trend, while the climate risk rating stayed at a moderate level.