The Bank of Slovenia (Banka Slovenije) is the central bank of Slovenia, established on 25 June 1991 under the Banking Act of Slovenia and headquartered in the capital Rubiana. According to the law, it is a public legal entity that "independently manages its own assets in accordance with the law" (Article 1 of the Banking Act) and is "wholly state-owned" but enjoys full independence and is not subject to government directives. The decision-making body includes the president and the management committee, and the bank is not dependent on other government departments in the exercise of statutory functions. Its main responsibility is to ensure the stability of the domestic currency and the payment of liquidity, and it has issued Slovenian tolars, switched to the euro in 2007, and has become a member of the European Central Bank system (Eurosystem).
Scope of Services
The Bank of Slovenia's areas of responsibility cover monetary policy, financial regulation, payment systems and public services:
monetary policy and macroeconomic analysisAs the central bank of the eurozone member states, the Bank of Slovenia participates in the monetary policy set by the European Central Bank, focusing on achieving price stability and maintaining the credibility of the euro. Its monetary policy decisions, such as the ECB's deposit facility, major refinancing, and marginal lending rates, affect the liquidity of the banking system through tools such as open market operations.
Banking Regulation and Financial Stability: The bank is responsible for microprudential supervision of financial institutions such as the Bank of Slovenia and the Savings Bank. Under the Eurozone Single Supervisory Mechanism (SSM), it works with the ECB on banking licensing, management suitability assessments, compliance checks, and capital requirement setting, and engages in macroprudential policies (e.g., countercyclical capital buffers) to curb systemic risks. In addition, it is also the national banking crisis management agency, responsible for the operation of the bank restructuring, liquidation and guarantee system, and manages the deposit protection fund to protect the interests of depositors.
Payment and clearing systems: The Bank of Slovenia, as the operator of the Eurosystem's payment infrastructure, provides market participants with "risk-free" central bank settlement services. In 2023, it completed the launch of the new TARGET system (TARGET-Slovenija), shifting the settlement of large payments to TARGET2 (T2), the settlement of securities transactions into TARGET2-Securities (T2S), and managing accounts for the Instant Payment System (TIPS). In addition, it provides Slovenian banks and savings institutions with access to the pan-European retail payment network and oversees the compliance of payment service providers across the country.
Cash Management and Public Services: As the national currency issuer, the Bank is responsible for the circulation of euro banknotes and coins in the country and continues to accept the exchange of old Slovenian torals (only for euros, coins are convertible until 2017, and banknotes can be exchanged for an unlimited period of time). Currency exchange, ATM or retail banking services are generally not available. It also assumes the role of national fiscal agent, managing government accounts and public sector ledgers, as well as managing the country's foreign exchange reserves and Special Drawing Rights (SDRs) and executing SDR-related transactions.
Statistics and public education: The bank collects and publishes national financial statistics (including monetary and banking, balance of payments, etc.) data, and operates a central credit registration system to support credit risk management. Since 2017, it has organized educational programs such as "Financial Literacy Education Day", student holiday programs, "Digital Future Masters" and "Bodi FIN" for primary and secondary schools and the public. In addition, the public can use a free bank fee comparison tool through the bank's website and download a variety of public publications, including the Monthly Bulletin, the Financial Stability Report, the Annual Report, and more.
Regulation & Compliance
Theregulatory structure and compliance mechanisms of the Bank of Slovenia are strictly governed by domestic and foreign regulations: as an independent public institution, it is bound by the provisions of the Banking Act of Slovenia and the EU Treaty, while enjoying constitutional guarantees for the independent exercise of its powers. In terms of banking supervision, the bank, through the National Banking Commission of Slovenia, has jointly developed a supervisory strategy with the European Central Bank, adopting a risk-oriented approach to supervision, including monitoring bank capital and risk levels, on-site inspections, and evaluating mergers and acquisitions. This is accompanied by a comprehensive Regulatory Review (SREP) conducted annually to evaluate the bank's business model, governance structure and risk management, and to determine additional capital requirements accordingly.
In addition, the Bank of Slovenia has its own internal governance and auditing mechanisms, reports regularly to the two chambers of the Slovenian Parliament, and engages independent auditors to conduct financial audits. Since 2018, President Primož Dolenc has stressed the need for "transparency and proper oversight," noting that the bank has established a system of regular reporting to Congress and being audited by the National Audit Office. In the area of anti-money laundering and other compliance, Slovenian banks also strictly implement supervision in accordance with EU and domestic regulations. While fulfilling its responsibilities in financial supervision, it also actively promotes the policy implementation and legal implementation of the European Central Bank and international supervisory organizations.
Financial health The
Bank of Slovenia is in a strong financial position. At the end of 2023, total assets amounted to around €37.92 billion, a significant increase compared to 2022, while euro cash outstanding amounted to around €6.89 billion during the same period. Its share capital and capital reserves amounted to approximately 1.253 billion euros, while the balance for the year was almost zero. Its foreign exchange reserves are relatively small – around €1.342 billion in January 2025 (which mainly reflects the actual needs of a small eurozone economy). In order to fulfill its monetary stability responsibilities, the bank transfers foreign exchange assets to the ECB under the Eurosystem apportionment mechanism, continues to administer the Special Drawing Rights (SDRs) allocated by the International Monetary Fund, and acts as Slovenia's financial agent in the IMF. As part of its financial stability mandate, banks diversify risks through macroprudential tools, setting a countercyclical capital buffer of 1.0% for the domestic banking system from 2025 onwards to enhance its resilience to shocks. At the same time, the risk buffer of real estate loans will be adjusted in a timely manner. The bank is also responsible for the custody of the Slovenian Deposit Insurance Fund, which guarantees depositors up to the €100,000 limit, thereby increasing public confidence in the banking system.
Policy Tools and Financial Market Operations
Withoutissuing deposit or loan products, Slovenian banks mainly use macro-monetary policy tools and financial market operations to influence the economy. As part of the Eurosystem, it follows the benchmark interest rates set by the European Central Bank: the Deposit Facility Rate, the Main Refinancing Rate, and the Marginal Lending Rate. When monetary policy is implemented, it manages the liquidity of the banking system through the open market operations of the euro system, such as one-time and targeted refinancing operations, pledged lending instruments, etc. When needed, the ECB and its member banks can also intervene in the market by buying and selling securities to achieve monetary policy objectives. In addition, the Bank of Slovenia assumes the function of managing foreign exchange reserves: it has transferred foreign exchange assets to the ECB on the basis of its share of capital at the time of accession to the euro system and regularly processes transactions related to SDRs. Although the central banks of the eurozone member states generally do not intervene in the foreign exchange market alone, the Bank of Slovenia, as a fiscal agent, carries out international transactions related to foreign exchange reserves and participates in the coordination of EU foreign exchange policy.
Digital service experience
The Bank of Slovenia actively follows the development of the eurosystem in the field of digital finance. As for central bank digital currencies (CBDCs), it is currently in the research phase: in 2020 it said that there is no urgent need for CBDCs within the euro system, but that it is working with the ECB to develop a unified digital euro scheme. In terms of digitalization of the payment system, the bank has completed the upgrade of the next-generation payment platform: in March 2023, the new TARGET payment system was launched, achieving full coverage of T2 (large-value real-time payment), T2S (securities settlement) and TIPS (instant micropayment). It is also actively involved in ECB-related projects, such as the Digital Euro Pilot and the TARGET2/T2S merger. In terms of fintech, the Bank of Slovenia has established a Fintech Innovation Contact Point to provide a platform for regulatory interpretation and technical exchange for innovative financial service providers in the market (such as companies in blockchain payments, digital currencies, crowdfunding, regtech, etc.). The focal point does not provide technical testing or business consulting, but helps innovative companies understand compliance requirements and promote the development of the domestic fintech ecosystem.
Safety & Data Protection
As the core of the country's financial infrastructure, the Bank of Slovenia has adopted strict information security and data protection measures. It has an internal data protection policy in place to prevent the leakage, misuse, or tampering of personal and sensitive data through technical and organizational means. According to its public Privacy Statement, the Bank requires employees and partners to sign confidentiality obligations and implements security measures for the systems that process data. In the institutional strategy, "cyber resilience" is listed as one of the priorities of digital construction, and cyber security drills and stress tests are regularly organized. In 2024, Slovenia suffered several large-scale cyber attacks, which led to the temporary collapse of the government website and the official website of the Bank of Slovenia. After the incident, the bank actively repaired the system and participated in cooperation with the European Central Bank and related institutions in cyber risk monitoring and protection. To date, there have been no publicly reported major data breaches. In addition, the bank undergoes an annual independent third-party audit and cooperates with the Data Protection Authority to conduct regulatory reviews to ensure compliance with the General Data Protection Regulation (GDPR).
Distinctive Functions and International Roles
In addition to its traditional central bank functions, the Bank of Slovenia is also active in sustainable finance and international cooperation. In the area of green finance, the bank implements a socially responsible investment framework for its asset management: at the end of 2022, it held nearly 280 million euros of green, social and sustainable bonds, accounting for more than 7% of total assets. This is a significant increase from less than 1% in 2018; At the same time, the bank explicitly excludes bonds in tobacco, weapons and other industries. In March 2023, it released its first climate-related disclosures report, committing to gradually move its portfolio's carbon emissions closer to net zero by 2050. In international affairs, the Bank of Slovenia is a member of the IMF (the President is also Slovenia's member of the IMF) and has been a member and shareholder of the Bank for International Settlements (BIS) since 1996, with the President participating in the BIS Council and the Annual General Meeting. It also participates in the relevant committees of the Organisation for Economic Co-operation and Development (OECD) and works with the central banks of neighbouring countries on technical assistance projects. As one of the 19 central banks in the Eurozone, the Bank of Slovenia votes on the ECB's decisions on a rotating basis, and also participates in European financial supervision and settlement coordination on behalf of the country. Its ability to implement EU fiscal and regulatory rules has been internationally recognized: Slovenia's euro adoption and banking system stability have been positively assessed by the IMF and the EU's periodic evaluation reports.
Market Position & Accolades
In the Eurosystem and the EU financial system, Slovenian banks are stable but in the middle of the pack. It has equal responsibilities for common monetary policy and financial stability with other eurozone central banks, and does not have an independent credit rating of its own, and its authority is more reflected in the country's sovereign rating (in 2024, Slovenia received the international rating agency "A."). ratings). As an independent regulator and financial infrastructure operator, the bank has earned market recognition for its transparent operations and robust management: it submits annual reports to Congress, publishes financial and policy analysis, and is audited by the National Audit Office. Although there is no specific mention of the award, as a member central bank of the Eurozone, the Bank of Slovenia has been widely recognized at home and abroad for its regulatory framework and transparency that meets high international standards, and has maintained the credibility and sound operation of the country's financial system.
