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Economy and Banking Sector of Slovenia

Slovenia
Location
Southeastern Europe
Population  (2016)
2 064 188  (0.00%)
EU Status
member since 2004
Currency
EUR (Euro)
Nominal GDP (2015)
38.5 bln EUR  (+0.03%)
Credit Ratings (as of Sep 2016)
BBB+/Baa3/A
Consolidated Banking Assets (2015)
40 421.04 mln EUR  (-2.45%)
Deposit Guarantee
100 000 EUR
Number of Banks
19

Located in Southeastern Europe, Slovenia is a memberof the European Union since 2004 and of the Economic Monetary Union since 2007.

Slovenia has excellent infrastructure, a well-educated work force, and a strategic location between the Balkans and Western Europe. Main industries of Slovenian economy are ferrous metallurgy and aluminum products, lead and zinc smelting; production of electronics, trucks, automobiles, electric power equipment and machine tools.

Banking sector of Slovenia is highly concentrated and is dominated by domestic state-owned banks.

List of Banks in Slovenia

National Currency

Euro (EUR)

Slovenia joined the Euro Area on 1 January 2007. The preceding national currency, Slovenian tolar (SIT), was replaced by Euro.

GDP

Nominal GDP (2015)Nominal GDP per Capita (2015)Real GDP Growth (2015)
38.5 bln EUR  (+0.03%)18 700 EUR  (+0.03%)2.9 %  (2014: 2.6 %)

According to Eurostat, nominal GDP of Slovenia in 2015 was 38.5 bln EUR.

Slovenia underperforms the European Union in terms of real GDP growth with the average annual differential coming to -0.2% over the past 10 years (2005 - 2015). In 2015 real GDP growth was 2.9% which was above the Euro Area average (1.6%) and above the European Union average (1.9%). Real GDP growth in 2016 - 2021 are IMF's estimates.

Real GDP Growth in Slovenia. Chart 1. Real GDP Growth in Slovenia. Source: Eurostat, International Monetary Fund.

In 2015, nominal GDP per capita in Slovenia was 18 700 EUR.

Slovenia has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -15.9% over the past 10 years (2005 - 2015). GDP per capita at PPP in 2016 - 2021 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  Slovenia; European Union = 100. Chart 2. GDP Per Capita at Purchasing Power Parity in Slovenia; European Union = 100.

Inflation Rate

CPI, MoM (Dec 2016)CPI, YoY (Dec 2016)CPI, Year Average (2016)
-0.4 %  (Nov 2016: 0.1 %)0.6 %  (Nov 2016: 0.7 %)-0.2 %  (2015: -0.8 %)

According to Eurostat, inflation rate in Slovenia in 2016 expressed as annual percentages of average consumer prices was -0.2% which was below the Euro Area average (0.2%) and below the European Union average (0.3%). Inflation rates in 2017 - 2021 are IMF's estimates.

Inflation Rate in Slovenia. Chart 3. Inflation Rate in Slovenia. Source: Eurostat, International Monetary Fund.

Unemployment Rate

Unemployment Rate (2015)
9.0 %  (2014: 9.8 %)

Government Bond Yield

Government Bond Yield (Dec 2016)
0.96 %  (Nov 2016: 0.89 %)

Credit Ratings (as of Sep 2016)

Fitch Moody's S&P
BBB+ (good credit quality), outlook positive Baa3 (lower medium grade), outlook stable A (upper medium grade)

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Slovenia: 57 Signed Agreements

Slovenia signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):

 Albania
 Armenia (Apr 2013)
 Austria
 Azerbaijan
 Belarus
 Belgium
 Bosnia and Herzegovina
 Bulgaria
 Canada
 China
 Croatia
 Cyprus
 Czech Republic
 Denmark
 Estonia
 Finland
 France
 Georgia (Sep 2013)
 Germany
 Greece
 Hungary
 Iceland
 India
 Ireland
 Israel
 Italy
 Korea, Republic of
 Kuwait (May 2013)
 Latvia
 Lithuania
 Luxembourg
 Macedonia
 Malta
 Moldova, Republic of
 Montenegro
 Netherlands
 Norway
 Poland
 Portugal
 Qatar
 Romania
 Russian Federation
 Serbia
 Singapore
 Slovakia
 Spain
 Sweden
 Switzerland
 Thailand
 Turkey
 Ukraine
 United Kingdom
 United States
 Uzbekistan (Nov 2013)

There are also several agreements between Slovenia and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 01 January 2013 of signing the agreement is given in brackets):

 Egypt
 Iran, Islamic Republic of
 United Arab Emirates (Oct 2013)

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 3 Signed Agreements

Slovenia signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):

 Guernsey
 Isle of Man

There are also several agreements between Slovenia and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):

 Jersey (Nov 2013)

Automatic Exchange: Starts in September 2017

Slovenia signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Slovenia
IGA in effect since 02 June 2014, Model 1

Slovenia has FATCA agreement with the U.S. in effect since 02 June 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Slovenia are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Slovenian financial accounts hold in U.S. financial institutions will be reported to Slovenian authorities.

Further Information

Financial Market Development

Financial Market Development
3.2 (max 7.0), 118th out of 138 countries
Banks' Soundness
3.5 (max 7.0), 124th out of 138 countries

According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in Slovenia is scored 3.2 out of maximum 7.0 and ranked 118th out of 138 analysed economies. Soundness of banks is scored 3.5 bringing Slovenia into the 124th place, trustworthiness and confidence of financial market is scored 3.2 (124th place).

Financial Market Development in Slovenia. Chart 4. Financial Market Development in Slovenia. Source: WEF.

Deposit Guarantee Scheme

Maximum Protected Amount
100 000 EUR

Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Slovenia are summarised in Table 1.

Scheme Participantsall credit institutions operating in Slovenia, branches of non-EEA banks, branches of Slovenian banks abroad
Scheme Exemptionsbranches of EEA-banks (covered by their home countries)
Eligible Depositorsprivate individuals, private individuals independently engaged in business activities, sole traders or legal entities that do not satisfy the criteria for being classed as a large or medium-size enterprise
Covered Accountscurrent accounts, savings deposits, cash deposits, and certificates of deposit and bills
Maximum Protected Amount100 000 EUR
Paid In CurrencyEUR

Table 1. Deposit guarantee scheme in Slovenia.

EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.

Further Information

Country Ceiling for Deposits

Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.

Local Currency (Euro) Foreign Currency
Aa3 (high grade) Aa3 (high grade)

Local currency (Euro) deposit ceiling for Slovenia is set to Aa3 (high grade), foreign currency deposit ceiling is Aa3 (high grade).

Deposit Rates

Average Deposit Rate (Nov 2016, EUR)
0.19 %  (Oct 2016: 0.20 %)
In Nov 2016, an agreed annualised deposit rate in local currency (Euro) of new contracts with agreed maturity up to 1 year between credit institutions and households was 0.19% which was below the Euro Area average (0.44%).
Deposit Rates in Slovenia. Chart 5. Deposit Rates in Slovenia. Source: ECB.

Banking Sector Structure

Number of Banks
19
Consolidated Assets (2015)
40 421.04 mln EUR  (-2.45%)
Recent Changes (2016)
new banks: 0, closed banks: 4

Currently there are 19 credit institutions operating in Slovenia.

Recent structural changes (2013 - 2016) of the banking sector of Slovenia are summarised in Table 2.

2013201420152016
Number of Opened Banks0100
Number of Closed Banks0014

Table 2. Recent structural changes in the banking sector of Slovenia.

The list of the most recently opened banks in Slovenia is provided in Table 3.

NameStart Date
 Brüll Kallmus Bank AG, Bančna podružnica v Sloveniji (new)May 2014
 

Table 3. The most recently opened banks in Slovenia.

All the credit institutions operating in Slovenia can be classified into several categories. Table 4 summarises the number of banks in each category.

CategoryNumber of Banks
Banks15
Branches of foreign banks3
Central banks1

Table 4. Number of banks by category in Slovenia.

There are 3 branches of foreign banks from 2 different countries in Slovenia. Table 5 shows the number of branches grouped by the country of origin.

Country of OriginNumber of Branches
 Austria2
 France1

Table 5. Number of branches of foreign banks in Slovenia grouped by country of origin.