Slovenia - Banking SystemsSlovenia - Banking Systems
The 2008-12 global economic crisis had a devastating impact on Slovenia’s banking sector and heavily exposed it to management buyouts of key Slovenian companies, most of which failed, thereby increasing the ratio of non-performing loans. Consequently, the banking sector tightened credit, resulting in a huge credit crunch, especially for SMEs. Although the financial environment has improved dramatically since 2012 as major banks have shed bad assets, new loans are often difficult to obtain. NLB, Slovenia’s largest bank, is state-owned, although the government has announced a plan to privatize it by the end of 2019.
Banks are limited to a narrow range of traditional activities and have yet to engage in new consumer services, investment banking, and management of more complex financial instruments. Nevertheless, the financial statements of Slovenian banks comply with international standards and are audited regularly by internationally-recognized auditors. Identifying financing for domestic projects can be problematic, with banks typically seeking 100 percent or more collateral in most cases.
Slovenia has taken some important steps to liberalize its financial markets, and a combination of market forces, national legislation, and Bank of Slovenia regulations are moving the banking sector toward greater compliance with global expectations. In the future, portfolio and direct investments will likely become more straightforward and transparent, while banking, securities brokering, and complex credit transactions will become more commonplace.
Other sources of financing are available for a limited range of activities. The U.S. Export-Import Bank provides medium-term and long-term loans and guarantees, while OPIC offers loan guarantees and direct loans. The European Investment Bank (EIB) and the International Finance Corporation fund large infrastructure projects, while the European Bank for Reconstruction and Development (EBRD) provides financing for banking sector privatization as well as privatization of other sectors. In July 1999, the Slovenian Export Corporation (SEC) and the U.S. Export-Import Bank signed a memorandum on cooperation in financing, insuring, and reinsuring exports to Southeast European countries. The reference interest rate in Slovenia is EURIBOR. Interest rates are usually expressed as three, six, or 12-month EURIBOR + margin. The Consumer Price Index (CPI) is used as a measure of inflation. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Banks are limited to a narrow range of traditional activities and have yet to engage in new consumer services, investment banking, and management of more complex financial instruments. Nevertheless, the financial statements of Slovenian banks comply with international standards and are audited regularly by internationally-recognized auditors. Identifying financing for domestic projects can be problematic, with banks typically seeking 100 percent or more collateral in most cases.
Slovenia has taken some important steps to liberalize its financial markets, and a combination of market forces, national legislation, and Bank of Slovenia regulations are moving the banking sector toward greater compliance with global expectations. In the future, portfolio and direct investments will likely become more straightforward and transparent, while banking, securities brokering, and complex credit transactions will become more commonplace.
Other sources of financing are available for a limited range of activities. The U.S. Export-Import Bank provides medium-term and long-term loans and guarantees, while OPIC offers loan guarantees and direct loans. The European Investment Bank (EIB) and the International Finance Corporation fund large infrastructure projects, while the European Bank for Reconstruction and Development (EBRD) provides financing for banking sector privatization as well as privatization of other sectors. In July 1999, the Slovenian Export Corporation (SEC) and the U.S. Export-Import Bank signed a memorandum on cooperation in financing, insuring, and reinsuring exports to Southeast European countries. The reference interest rate in Slovenia is EURIBOR. Interest rates are usually expressed as three, six, or 12-month EURIBOR + margin. The Consumer Price Index (CPI) is used as a measure of inflation. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.