Systemic risk buffer (in force from 1 January 2025)
The current requirements for maintaining a systemic risk buffer in relation to sectoral exposures in the Republic of Slovenia referred to in the first and second indents of point 4 of the first paragraph of Article 247 of the Banking Act, in the following amount:
- 0.5% for all retail exposures to natural persons secured by residential immovable property;
- 0.5 % for all other exposures to natural persons.
At its 713th meeting on 21 November 2023, the Governing Council of Banka Slovenije adopted a Regulation amending the Regulation on determining the requirement to maintain a systemic risk buffer for banks and savings banks (Official Gazette of the Republic of Slovenia No 131/23), hereinafter referred to as the Regulation.
With the Regulation the systemic risk buffer rate for all retail exposures to individuals secured by residential real estate is reduced from 1.0% to 0.5% of the total risk exposure amount. Banks will be able to apply the new buffer rate from 1 January 2025.
The downward recalibration of the sectoral buffer for exposures secured by residential real estate is based on regular systemic risk assessments, which indicate that the situation in the Slovenian real estate market is moderating. In our assessment, the period of high house price growth and high growth in housing loans in a context of high inflation and higher interest rates is coming to an end.
The requirement to maintain a systemic risk buffer for all banks in relation to sectoral exposures in the Republic of Slovenia referred to in the first and second indents of Article 247(4) of Article 247(1) of ZBan-3 as of 1 January 2025 is therefore:
- 0.5 % for all retail exposures to natural persons secured by residential real estate;
- 0.5 % for all other exposures to natural persons.
In the interim period, i.e. until 31.12.2024, a buffer rate of 1.0 % shall apply to the first group of sectoral exposures.
Last updated: 12.01.2024.