Slovenia: Banking Sector Still Prone to Risks

Politics ♦ Published: March 14, 2014; 14:18 ♦ (Vindobona)

The Slovenian banking sector is still prone to risks as the number of non-performing loans was not reduced substantially.

The corporate sector needs about EUR 5bn fresh equity, according to the Bank of Slovenia. / Picture: © BSI Bank of Slovenia

Slovenian banks' asset quality is still a risk despite the transfer of non-performing loans to the government-created "bad bank", Fitch Ratings says. Impaired loans have not reduced substantially as stricter loan classification has led to new inflows, even though official NPLs have fallen.

The Bank of Slovenia highlighted the decline in 90+ day arrears on Tuesday. These fell to…