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

    APRA to Transition to Annual Stress Testing of Large Banks in 2020

    APRA published key findings of the stress testing assessment conducted on authorized deposit-taking institutions.

    February 21, 2020 WebPage Regulatory News
    News

    EC Consults on Review of Non-Financial Reporting Directive

    EC is launched a consultation on the review of the Non-Financial Reporting Directive or NFRD (Directive 2014/95/EU, as part of its strategy to strengthen sustainable investment in Europe.

    February 20, 2020 WebPage Regulatory News
    News

    EIOPA Consults on Standards for Supervisory Reporting Under PEPP Rule

    EIOPA is consulting on the implementing technical standards for supervisory reporting and cooperation, as mandated by the Pan-European Personal Pension Product (PEPP) Regulation (Regulation 2019/1238).

    February 20, 2020 WebPage Regulatory News
    News

    ECB Report on Transfer of Liquidity from EONIA Products to €STR

    ECB published a report on the transfer of liquidity from the cash and derivatives products of the Euro Overnight Index Average (EONIA) to the Euro Short-Term Rate (€STR).

    February 19, 2020 WebPage Regulatory News
    News

    ESRB Publishes Report on Systemic Cyberattacks

    ESRB published a report that explores systemic implications of cyber incidents, such as cyberattacks.

    February 19, 2020 WebPage Regulatory News
    News

    FSB Chair Sets Out Key Deliverables for G20 Presidency of Saudi Arabia

    FSB published a letter from the Chair Randal K. Quarles to the G20 finance ministers and Central Bank governors ahead of the meetings in Riyadh on February 22-23.

    February 19, 2020 WebPage Regulatory News
    News

    CFTC Proposes Rules on Derivative Position Limits and Swap Execution

    CFTC approved a proposed rule on position limits for derivatives and a proposed rule amending requirements for certain Swap Execution Facilities and real-time reporting.

    February 19, 2020 WebPage Regulatory News
    News

    BIS Appoints Heads of Innovation Hubs in Singapore and Switzerland

    BIS announced key personnel appointments to the Innovation Hubs in Singapore and Switzerland.

    February 19, 2020 WebPage Regulatory News
    News

    BOJ Deputy Governor Speaks on Interest Rate Benchmark Reform in Japan

    The Deputy Governor of BOJ Masayoshi Amamiya spoke in Tokyo about how Japan should proceed with interest rate benchmark reform over the next two years until the end of 2021, when the discontinuation of LIBOR is expected.

    February 19, 2020 WebPage Regulatory News
    News

    OSFI Proposes New Benchmark Rate for Qualifying Uninsured Mortgages

    OSFI announced that it is considering a new benchmark rate for determining the minimum qualifying rate for uninsured mortgages.

    February 18, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4708