Press release: The Bank resolution fund established
At end of March 2015, pursuant to the Bank Resolution Authority and Fund Act (Official Gazette of the Republic of Slovenia, No. 97/14; the ZOSRB), the Bank of Slovenia established a special fund for bank resolution.
The fund is financed by contributions from banks and savings banks established in Slovenia, and its assets will be used for financing the resolution of banks within the framework of the extraordinary measures that can be imposed by the Bank of Slovenia. According to the law, the fund will cease its operations on 31 December 2024.
EUR 191 million of founding assets paid up
The target level for the fund, comprising bank assets that are managed separately from other assets by the Bank of Slovenia, is 2.3% of total guaranteed deposits at all banks in Slovenia (guaranteed deposits amount to approximately EUR 15 billion).
Of this, the banks had provided founding assets in the amount of 1.3% of total guaranteed deposits by 30 March 2015. The fund has EUR 191.07 million of founding assets (a list of the contributions by each bank is in section Contributions to the fund).
The banks must have the capacity to provide cash to the fund at any time in the amount of 1% of the sum of all guaranteed deposits. To this end, as of 31 March 2015 they must hold liquid assets as set out by the Regulation on liquid investments for the purpose of the resolution fund (Official Gazette of the Republic of Slovenia, No. 6/15).
In accordance with the ZOSRB, the investment policy for the management of the fund’s assets is set out by the Bank of Slovenia to ensure the security, low risk and high liquidity of the bank resolution fund’s assets.
For more information about the fund, see the Bank of Slovenia website’s section on the Bank Resolution Fund.