• Mária Barteková Faculty of Management, Comenius University in Bratislava
  • Ľudomír Šlahor Faculty of Management, Comenius University in Bratislava
Keywords: financial market, student loans, the Slovak banking sector


The aim of this paper is to analyse student loans subsidized by the state in Slovakia and their role in the Slovak banking sector. There has been a slight increase in the Slovak banking market, especially the share of small and medium-sized banks. Student loans ensure equal educational opportunities for all students. Four years of a student loan provision in Slovakia can be briefly characterised as a socially oriented approach. The Slovak government, the founding owner of the Education Support Fund, has implemented numerous changes concerning the clients in the borrowing as well as in the repayment phase. The empirical analysis in this paper consists of the descriptive statistics focused on the Slovak student loan market and the financial analysis of the banking sector providing student loans in Slovakia. The most significant finding that emerged from our analysis is to provide every student enrolled in higher education with the information on accessible student loans with a low interest rates. The achieved results prove the decreasing role of student loans subsidized by the state within the Slovak banking market. However, the profitability of the Education Support Fund was significantly higher than the figure achieved by the Slovak banking sector in 2017.


Arcand, J. L., Berkes, E. & Panizza, U. (2015). Too much finance?. Journal of Economic Growth, 20(2), 105-148.

Beck, T., Büyükkarabacak, B., Rioja, F. & Valev, N. (2012). Who Gets the Credit? And Does It Matter? Household vs. Firm Lending Across Countries. The B.E. Journal of Macroeconomics, 12(1), 1-46.

Cecchetti, S. G. & Schoenholtz, K. L. (2015). Money, Banking and Financial Markets. New York, NY: McGraw-Hill Education.

Cifter, A. (2015). Bank concentration and non-performing loans in Central and Eastern European countries. Journal of Business Economics and Management, 16(1), 117-137.

Ding, L., Li, B. & Feng, S. (2014). Research on Multiprincipals Selecting Effective Agency Mode in the Student Loan System. Mathematical Problems in Engineering, 2014, 1-8.

European Banking Federation. (2018, February 12). Slovakia’s banking sector: Facts & Figures. Retrieved from

Eurostat. (2018, February 15). GDP and main components (output, expenditure and income). Retrieved from

Goenner, C. F. (2018). The market for private student loans: an analysis of credit union exposure, risk, and returns. Review of Quantitative Finance and Accounting, 50(4), 1227-1251.

Heitor, M., Horta, H. & Leocadio, M. (2016). Enlarging the social basis of higher education: Lessons learned from extending a social support system with a risk-sharing loan scheme in Portugal. Technological Forecasting and Social Change, 113, 319 – 327.

Henager, R. & Wilmarth, M. J. (2018). The Relationship between Student Loan Debt and Financial Wellness. Family & Consumer Sciences Research Journal, 46(4), 381-395.

Miller, J. J. & Nikaj, S. (2018). Student loan debt, educational attainment, and tenure choice. Education Economics, 26(4), 393 – 410.

Rentková, K., Panevski, D. (2017). The financial sector and economic development. Vision 2020: sustainable economic development, innovation management, and global growth (s. 4004-4017). Norristown: IBIMA.

Sahay, R. et al. (2015, May 4). Rethinking Financial Deepening: Stability and Growth in Emerging Markets. Retrieved from

The International Monetary Fund. (2018, January 10). Global Financial Stability Report, October 2016: Fostering Stability in a Low-Growth, Low-Rate Era. Retrieved from

The Education Support Fund. (2018, February 11). Annual report for 2016. Retrieved from

The National Bank of Slovakia. (2018a, January 12). Analysis of the Slovak Financial Sector 2016. Retrieved from

The National Bank of Slovakia. (2018b, January 11). Consumer loans. Retrieved from

The National Bank of Slovakia. (2018c, February 16). Loans - Breakdown by All Sectors – Outstanding Amounts. Retrieved from

The World Bank. (2018a, February 9). Bank nonperforming loans to total gross loans (%). Retrieved from

The World Bank. (2018b, February 10). Domestic credit provided by financial sector (% of GDP). Retrieved from

The World Bank. (2018c, February 8). Domestic credit provided by financial sector (% of GDP) - Metadata. Retrieved from