CONTRIBUTION OF LOAN AND INTEREST RATES STRUCTURE TO THE DEVELOPMENT OF THE LIQUIDITY IN BANKING SECTOR OF THE SLOVAK REPUBLIC AND EURO AREA.

Currently is very topical the issue of stability and liquidity of banks and banking sectors. In this paper we bring evaluation of the liquidity situation in the banking sector of the Slovak Republic and comparison of main tendencies with the Eurozone. It will focus in particular on whether the current structure of loans as the main generator of profit is appropriately according preferences banks to get the profit in future. Although liquidity is related to the assets and liabilities of banks, the article focuses on the subproblem, related to whether there is a sufficient space for the new and also profitable lending business of commercial banks. Therefore, we consider the potential profitability and structure of loans in the banking sector as the most important pillar of stability and ensure sufficient liquidity. Questions of the appropriateness of the credit structure will be analyzed on the basis of Markowitz modern portfolio theory and on the basis of the theoretical concept of net value of the bank. Markowitz modern portfolio theory takes into account income from loans and their mutual covariance, the theory of the net value of the bank takes into account in particular the anticipated changes in interest rates and loan maturities. We assume that where recommendations will be identical to the structure of the loan is a high probability that these recommendations are correct. [ABSTRACT FROM AUTHOR]