 | facts & figures / financial market / secured docs |
|
BANKING SECTOR As of 31st December 2007 there were 20 banks operating in Slovenia, supplementary 3 banks are subsidiaries of foreign banks and 3 are representative offices of foreign credit institution in Slovenia. In addition, 3 savings banks as well as 3 branches of EEA state's credit institutions and 190 EEA state's credit institutions that have notified their operation in Slovenia perform their activities. The number of banks has been falling steadily since 1994. The high level of concentration of banks within the banking system increased further in 2005 with the strengthening of the market share of the largest bank from 28.8% in 2000 to 30.3% at the end of 2006 (33.4% together with its three subsidiaries). Banking assets in Slovenia represent 106.4% of GDP (end of 2006). Three Slovenian banks rank among the world's top 1000, according to a survey by The Banker magazine. Slovenia's leading bank, Nova Ljubljanska banka (NLB), came in 419th, Gorenjska banka placed 824th and Nova Kreditna banka Maribor was 906th. NLB is by far the biggest bank on the market and the only one already expanding abroad. Percentage market shares of the 7 largest banks in Slovenia as of 31st December 2006 by balance sheet total Source: Bank of Slovenia The proportion of the banks’ capital in foreign hands increased in 2001 with the takeover of SKB by Société Générale, Paris and the purchase of a stake in Banka Koper by SanPaolo IMI. In the first half of 2002 SanPaolo IMI increased its stake in Banka Koper, and the proportion of foreign-held equity in Krekova banka also rose substantially. At the end of 2006, some 37.7% of the capital of the banks in Slovenia was foreign-owned. Slovene financial institutions in foreign hands, 2007 Source: The Bank Association of Slovenia The rehabilitation of the two state-owned banks was successfully completed in July 1997 and their privatisation got underway in 2000. At the end of May 2001 the Government approved the privatisation programmes for the two largest Slovenian banks – the Ljubljana-based Nova Ljubljanska banka (NLB), and the Maribor-based Nova Kreditna banka Maribor. The privatisation of NLB has been carried through, with the Belgian group KBC acquiring a 34 per cent stake and the European Bank for Reconstruction and Development acquiring a 5 per cent stake. The Government’s privatisation programme for NKBM adopted in May 2001 foresaw the sale of a 65 per cent stake to a foreign strategic partner. After careful examination of three bids and following negotiations with the bidders, the commission responsible for managing and supervising the procedure for the sale of NKBM concluded that none of the bids met all of the objectives set out in the NKBM privatisation programme. In April 2002 the Government confirmed the commission’s decision to suspend the procedure for the sale of 65.94 per cent of the shares in NKBM. At the end of 2007 49% of the shares of NKBM in state ownership have been sold on stock exchange. Ownership structure of banking sector (in terms of equity) Source: Bank of Slovenia Selected bank performance indicators Source: Bank of Slovenia Ratings of Slovenian banks (Capital Intelligence) on the 30th of April 2005 Notes: 1 assesses the likelihood that obligations will be repaid in a timely manner 2 indicates CI’s opinion of a bank’s inherent financial strength and risk profile 3 assesses the likelihood that a bank would receive support in case of difficulties Sources: - Bank of Slovenia - Capital Intelligence Nominal growth and market share of banks Source: Bank of Slovenia Business banks in Slovenia: Further information: • Bank of Slovenia • Bank Association of Slovenia • Capital Intelligence |
|
 |
JAPTI - Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments disclamer |