Featured Product

    IMF Publishes Reports on 2018 Article IV Consultation with Slovenia

    February 18, 2019

    IMF published its staff report and selected issues report under the 2019 Article IV consultation with the Republic of Slovenia. Directors noted that financial stability has improved, owing to the decisive restructuring of ailing banks and prudent macro-economic policies. They add that large banks have adopted a proactive management of their nonperforming loans (NPLs) and supervisory authorities should continue to encourage and support these efforts. Furthermore, the administrative and regulatory burden needs to be reduced further to support investment and firm growth.

    The staff report highlights that, since the 2013 banking crisis, financial-sector stability has improved, though some legacy problems remain. Banks are well-capitalized and liquid while the overall asset quality has improved. Overall, progress has been made in resolving the NPLs; however, NPLs of small and medium enterprises (SME) remain elevated in the low double digits. Staff welcomed the adoption of the toolkit and handbook for resolving SME NPLs, in addition to the NPL guidelines, the ECB measures for the three banks it oversees, and the large banks’ proactive management of NPLs. It is recommended that supervisors should actively engage with banks on business models in light of the declining net interest income and should push banks to speed up the resolution of SME NPLs. Further efforts in strengthening insolvency procedures for SMEs would also help. The authorities agreed with staff’s analysis and advice. 

    The report further notes that new financial vulnerabilities could emerge, including in the housing market. Credit risks could emerge due to the elevated share of high variable-interest loans to both households and non-financial corporations. The decision to broaden the scope of macro-prudential tools for the real estate market to cover total household lending is welcome. The Bank of Slovenia maintains its macro-prudential guidance as recommendation to banks. It recommends that the loan-to-value ratio not exceed 80% and the debt-service-to-income ratio be limited to 50% for lower incomes and 67% for higher incomes. It is also recommended that consumer credit maturities not exceed 120 months. However, the limits could be made mandatory and be set at more binding levels when needed. The national authorities agreed to closely monitor risks in the housing market and take further macro-prudential measures, if needed.

     

    Related Links

    Keywords: Europe, Slovenia, Banking, Article IV, Financial Stability, NPLs, Macro-Prudential Policy, IMF


    Related Articles
    News

    OSFI Outlines Prudential Policy Priorities for Coming Months

    OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    BIS Announces TechSprint on Innovative Green Finance Solutions

    Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.

    May 06, 2021 WebPage Regulatory News
    News

    EBA Proposed Regulatory Standards for Central Database on AML/CFT

    EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.

    May 06, 2021 WebPage Regulatory News
    News

    ECB Responds to EC Consultation on Crisis Management Framework

    ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.

    May 06, 2021 WebPage Regulatory News
    News

    ACPR Publishes Version 1.0.0 of RUBA Taxonomy

    ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    BCBS, CPMI, and IOSCO to Survey Market Participants on Margin Calls

    BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.

    May 05, 2021 WebPage Regulatory News
    News

    ECB Amends Decision on TLTRO III

    ECB published Decision 2021/752 to amend Decision 2019/1311 on the third series of targeted longer-term refinancing operations or TLTRO III.

    May 05, 2021 WebPage Regulatory News
    News

    Central Bank of Ireland Issues Draft Template for AnaCredit Reporting

    The Central Bank of Ireland published Version 2.7 of the draft credit data template and rules for monthly AnaCredit reporting by banks.

    May 05, 2021 WebPage Regulatory News
    News

    OSFI Consults on Revisions to BCAR and Leverage Requirements Returns

    OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021.

    May 04, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Revisions to Nonperforming Loan Data Templates

    EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates.

    May 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6936