Banking Supervision

Banka Slovenije is part of European banking supervision within the framework of the banking union, and the European system of financial supervision.

The banking union was established in 2014 as a key component of the EU’s economic and monetary union.

Within the framework of the banking union, Banka Slovenije is part of the Single Supervisory Mechanism (SSM), which consists of the ECB and the national supervisors of participating euro area countries.

Banka Slovenije’s objectives in conducting banking supervision are to ensure the financial stability of the banking system, to prevent the system from being abused for the purposes of money laundering or terrorist financing, and to protect consumers.

Banka Slovenije’s supervisory objectives are to ensure that supervised entities:

• have adequate capital and liquidity with regard to their business model and risk profile,

• are adequately managed, governed and supervised, with clearly embedded risk appetites that promote a proper risk culture within individual banks and in the banking system,

• minimise the risk of banks and the banking system being abused for the purposes of money laundering and terrorist financing,

• operate transparently and in the best interests of consumers, and

• put in place frameworks to ensure that failing or likely-to fail banks are subject to a regulated and supervised resolution process that places no burden on taxpayers.