
Licensing
The authorisation to provide banking services is vital to maintaining confidence in the financial system, as it ensures that newly established banks have the capacity to operate. An authorisation to provide banking services can only be obtained by banks that meet all the legal requirements under European and national regulations. The procedure and criteria for obtaining an authorisation are the same for all banks and savings banks, irrespective of their business models. Slovenian banks and savings banks that intend to expand the list of services that they can provide after having received the initial banking licence (ie. if they intend to begin providing other financial or ancillary financial services as listed in the Banking Act) are required to obtain an extension of authorisation for each of those services.
The authorisation to acquire a qualifying holding ensures that only suitable shareholders are able to enter the banking system, thereby preventing disruptions to the functioning of the banking system. Any acquisition of or increase in a qualifying holding in an existing bank needs to be approved by the ECB. A holding is “qualifying” if it represents 10% or more of the capital or voting rights in a bank, or if it enables a significant influence over the bank. The Banking Act sets out additional thresholds (20%, one-third and 50% of for shares or voting rights, or if the bank becomes a subsidiary). The purpose of the procedure is to ensure that significant participation in banks can only be obtained by shareholders who are suitable. This contributes to the effectiveness of the banking system.
Fit and proper assessments are used to vet whether executive and non-executive members of the management body of a bank or savings bank are suitable for this role. The management body as a collective must also be suitable for exercising its powers, and its composition needs to provide for effective governance and balanced decision-making. By ensuring that the management bodies of credit institutions are fit and proper, we improve the security and stability of each bank, and thus the banking sector as a whole. This increases public confidence in the financial sector.
Any bank that holds an authorisation to provide services in one EEA country may expand its operations to other EEA countries. It can do so directly, or by establishing a branch on the territory of the other EEA country. On the basis of the rules on freedom to provide services and freedom of establishment, the authorisation that it has obtained from the domestic supervisor in its original country of establishment suffices for these purposes. The bank must officially notify the supervisor in the home country that it intends to provide services or establish a branch in another EEA country. The home country supervisor then notifies the supervisor in the host country of the bank’s planned activities. After a deadline period following official notification of the host supervisor has passed, the bank may commence the provision of services in the host country.
Under the Consumer Credit Act, consumer lending for real estate may be provided by banks, savings banks and financial institutions whose sole or primary business activity is the provision of finance leasing services and that meet the criteria set out by law with regard to their ownership and size. Before beginning to provide finance leasing services or advisory services in connection with such loans, leasing companies that wish to provide such consumer lending for real estate must obtain an authorisation from Banka Slovenije.
Banks, savings banks and leasing companies providing consumer lending for real estate may also sign contracts with an intermediary for the mediation of these services. Before beginning to act as a consumer credit intermediary for real estate or to provide advisory services in connection with such loans, these credit intermediaries must obtain an authorisation from Banka Slovenije.