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Banking Law in Slovenia

Banking Law in Slovenia

Updated on Friday 05th June 2015

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In January 2007 Slovenia has enabled its new law regarding banking policies called The new banking act (ZBan-1). The New Banking Act is aligned to the European Directives EU 2006/48/EC and EU 2006/49/EC. 

The Slovenian new banking law settles on the conditions for setting up new credit institutions in Slovenia and the legal frame for foreigners who want to open a financial institution in Slovenia. Our law firm in Slovenia can provide you with information regarding the Company Law if you want to open a business.

Any bank that wants to give credit loans is required to obtain an approval from the country’s national bank, The Bank of Slovenia.

Capital requirements for opening a bank in Slovenia

Even if the minimum amount of capital required by Slovenian laws remained at 8%, the new legislations set new rules for the risk weighted assets. The new rules are meant to lower the risks of losing assets due to internal failing procedures but also due to external factors that could lead to such events. The new law offers Slovenian financial institutions a three-way framework from which to choose the most convenient one in order to decrease the risks of asset loss. The New Banking Lawin Slovenia also sets a rule for credit risks based on rating.

The New Bank Laws in Slovenia allow a decrease of the capital adequacy requiring in exchange for a more complex system that will rate the market risks. This measure has been taken for the reduction of capital burden on small and medium size financial institutions.

Supervisory review in Slovenia

Other than the internal capital evaluation, The New Slovenian Banking Law also introduces a supervisory review of the institution conducted by the Bank of Slovenia that is meant to assess the bank, create a risk profile and set a minimum capital requirement.  ZBan-1 has also admitted to the mutual recognition and home state member observation. The Bank of Slovenia will allow a foreign financial institution to follow other EU member states legal requirements, but the Bank of Slovenia will keep track of the EU member state’s branch liquidities.

The new ZBan-1 requires discipline on the financial market in Slovenia. These laws consist of a set of regulations that allow market players to evaluate a bank’s capital and risk profile that the Bank of Slovenia must disclose.

ZBan-1 wants to level the odds of credit institutions and investment firms thus leading to an integrated financial market in Slovenia.

 

If you want to start a business in Slovenia and need advice about the banking laws, you can contact our Slovenian attorneys.

 

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