Reconstruction of banking in Slovakia

Banking reconstruction is a process that has began in 1989 having its foundation in the laws No 130/1989 Cell. and 158/1989 Cell. Under the notion of banking reconstructions the Significant changes in banking are meant primarily concerning changes in ownership, position of banks in the economy, new forms of banking, development of new products and others. The most significant change that occured under the given laws, was the demonopolization of commercial banking, the core of which is the process of gradual diminishing of the, role of state in the commercial banks activity. The process of gradual demonopolization - the first stage of banking reconstruction in the Czechoslovak Federal Republic - began by separation of the Czechoslovak State Bank (SBCS) into a bank of issue and three commercial banks. Another landmark of the development and reconstruction of our banking meant the enactment of the law No. 21/1991 Cell. on banks and No. 22/1991 Coll. on SBCS (Czechoslovak State Bank) that Save a legislative framework to the activities of the bank of issue and commercial banks. The third stage in the development of banking in Slovakia was establishment of the Slovak Republic. Under the law No. 566/1992 Cell. National Bank of Slovakia was founded as a bank of issue of the newly created stare. The basic role of the Bank was to create and stabilize currency, to establish economic and entrepreneurial milieu for the system of commercial banks. The third stage of Slovak banking reconstruction is characterized by the fact;that, evidently, the banking sector has already resolved the problems of creating a structural banking system (duble-level system, respectively), in realization of which the extensive elements of growth were applied. Because of the fact that the system of commercial banks seems to be institutionally saturated the banking units start to orientate towards intensification factors of growth.