A bank may be briefly described as a credit institution that holds Bank of Slovenia authorisation to provide banking services such as accepting deposits and granting loans. The drafting and updating of banking legislation, which is the responsibility of the government, is also influenced by the solutions co-created at the EU level with the aim of strengthening the banking sector and its resilience to possible future crises.
Bank of Slovenia
The Bank of Slovenia is the central bank of the Republic of Slovenia. On 1 May 2004, when the Republic of Slovenia became a full member of the European Union, the Bank of Slovenia became part of the European System of Central Banks. On 1 January 2007, when the Republic of Slovenia adopted the euro as its currency, the Bank of Slovenia became part of the Eurosystem, to which the competence for implementing the monetary policy was transferred. The primary objective of the Bank of Slovenia is to maintain price stability, while its other tasks include bank supervision.
Bank Association of Slovenia
The Bank Association of Slovenia is an economic interest grouping representing the interests of its members (banks). The association also organises the out-of-court settlement of consumer disputes relating to the provision of banking services.
Bank Assets Management Company
Within the framework of the latest bank rehabilitation, the Bank Assets Management Company (BAMC) was established in March 2013 as a company 100% owned by the Republic of Slovenia. Its main objective is to manage assets in order to repay the debt from the debt securities issued by the BAMC to pay the risk claims transferred to it as part of the measure to strengthen bank stability or bank rehabilitation measures.
The EU also strives to strengthen the banking system. In response to the latest financial crisis, it established the banking union consisting of two pillars: the single supervisory mechanism and the single resolution mechanism. The establishment of the uniform deposit guarantee scheme for holders of deposits up to €100,000 is also envisaged.
The single supervisory mechanism means that the European Central Bank, closely cooperating with national supervision bodies, directly supervises systemically important financial institutions.
The single resolution mechanism is the system for effective and efficient resolution of failing financial institutions based on common rules. It consists of the Single Resolution Board and the Single Resolution Fund.
The uniform deposit guarantee scheme means the establishment of a uniform guarantee for all banks in the Banking Union area and for holders of deposits of up to €100,000. Envisaged to this end is the establishment of the European deposit insurance scheme in which the banks will pay an annual contribution; in the event of difficulties, the scheme would pay out deposits of up to €100,000.
European Central Bank
The European Central Bank is the central bank of the European Union countries that have adopted the euro. Its tasks include the determination and implementation of the monetary policy in the euro area and supervision of systemically important banks.
European Banking Authority
The European Banking Authority (EBA) is an independent EU Authority (held accountable by the European Parliament, Council of the European Union and European Commission) whose overall objectives are to maintain financial stability in the EU and to safeguard the orderly functioning of the banking sector. The EBA is part of the European System of Financial Supervision made up of three supervisory authorities: besides the EBA, these are the European Securities and Markets Authorities and the European Insurance and Occupational Pensions Authority. The system also comprises the European Systemic Risk Board as well as the Joint Committee of the European Supervisory Authorities and the national supervisory authorities.
Payment services comprise the services enabling cash to be placed into or withdrawn from a payment account, as well as all the operations required for operating a payment account, the execution of payment transactions debited from or credited to a payment account, the execution of payment transactions where the funds are covered by a credit line for a payment service user, the issuing of payment instruments and acquiring of payment transactions, money remittance, payment initiation services and account information services. Payment services are provided by providers of payment services that obtain the relevant licence from the Bank of Slovenia for performing such activities.