On May 1 2006 amendments to the Banking Act came into force imposing new information duties on banks. For example, a bank must now display on its website and in its branches intelligible information for the public regarding the terms and costs of any banking service.
A new law aims to strengthen the rights of creditors in bankruptcy proceedings involving financial institutions, including Slovak banks and branches of foreign banks. However, a bank may be declared bankrupt only by the relevant supervisory body or by a special administrator, and Slovak courts have no jurisdiction to declare bankruptcy in the case of a bank based in another EU member state.
A recent amendment to the Securities and Investment Services Act has created a select group of entities, including banks, which enjoy privileged status when a pledge over securities is created in their favour. In particular, enforcement of the pledge is more flexible.
Under the Banking Act, banks and branches of foreign banks can establish a Joint Banking Register that will facilitate the preparation, conclusion and performance of clients' trades, and evidence the activities of banks and branches of foreign banks. After the register is established, banks and branches of foreign banks will be authorized to exchange information on clients and their trades.
From January 1 2006 the National Bank of Slovakia will supervise the financial market in the spheres of banking, capital markets, insurance and retirement savings. Authorizations and licences issued by the Financial Market Office will remain in force and effect, and will be considered to have been issued by the National Bank.
Slovakia has amended the Banking Act to introduce a system of consolidated banking supervision. The supervision will be carried out by the National Bank of Slovakia in order to limit the risks to which banks are exposed as a result of their participation in a consolidated or subconsolidated group. The amendment also sets out new regulations for multinational banking holdings.
Banks and branches of foreign banks conducting banking business in Slovakia must now offer their clients the option to conclude an arbitration agreement, on the basis of which potential disputes will be decided by the Permanent Arbitration Court of the Association of Banks.
Including: Regulation and Supervision; Banks, Branches of Foreign Banks and Representation Offices; Banking Activities; Banking Licences; Banking Requirements; Prior Consent of the Central Bank; Notification Duties; Forced Administration; Banking Secrecy; Data Protection.
An amendment to the Banking Act addresses the position of banks with respect to the processing of their customers' personal data. Pursuant to the amendment, banks are exempt from several rules that are generally applicable to personal data processing and customers are faced with a number of new obligations.
Act 510/2002 on Payment Systems is the first domestic law to regulate payment transactions and was drafted to ensure compliance with EU law. The law introduces some rules that are exceptions to general legal principles.