The pressures to which the currency has been subjected have depleted exchange reserves. The Slovak central bank is largely independent of the Government as regards the conduct of monetary policy. However, central bank legislation is still not fully compatible with Community rules. The former government tried unsuccessfully to reduce the independence of the central bank. Restructuring of the banking sector has been limited, partly as a result of political reluctance to proceed with it in a transparent manner.
Unrecoverable loans represent a third of total loans.