Slovenia’s banks are in a state of flux. Since the outbreak of the global financial crisis in 2008 and Slovenia’s domestic banking crisis in 2013, much has changed. A domestic bail-in and a bail-out of three of the country’s largest financial institutions required the government and Slovenian taxpayers to shoulder a large bill, while a newly established bad bank took much of the non-performing loan (NPL) burden.
As of 2016, despite still-high problem assets, the banking sector has largely recovered and is well capitalised, but further change is waiting in the wings. Buzzwords include private equity, consolidation and privatisation, with some familiar topics, centring on the resolution of NPLs and adaption to the eurozone’s ultra-low interest rate environment, also surfacing.
